The European Investment Bank is giving Northern Powergrid £250m over the next two years to help upgrade the power network in the North East, Yorkshire and northern Lincolnshire.
The cash will help the grid become smarter and better able to cope with new demands and will affect around four million homes and businesses.
Jonathan Taylor, European Investment Bank Vice-President said: “Investment in UK energy infrastructure is essential to upgrade equipment, ensure supply and expand innovative services.
“The European Investment Bank recognises the importance of ambitious investment being carried out by regional power companies and is pleased to provide a loan of £250 million to support Northern Powergrid’s wider investment programme through one of our largest ever loans for energy distribution in the United Kingdom.”
The loan will support Northern Powergrid’s £3 billion, eight-year investment programme and includes improving connections to 900MW of renewable energy resources, such as onshore and offshore windfarms and solar power schemes.