The European Investment Bank (EIB) has agreed a CZK5 billion loan (€190m) to help modernise and reinforce the electricity transmission network in the Czech Republic.
It has signed an agreement with state-owned Czech Transmission System Operator, or ČEPS, which will improve the security of the electricity system and facilitate power exchanges and transit flows mainly from Germany to Austria through Poland and the Czech Republic.
As an EU Project of Common Interest, it will also enhance the integration of renewable energy in the network.
The Czech Republic is a key country in Central-Eastern Europe for power trading and transit, given its location, in particular next to Germany.
Solving network bottlenecks in neighbouring countries and supporting the growth in renewables in the area are essential to ensure safe and resilient operation of the Czech transmission network and maintain security of supply.
EIB Vice President Lilyana Pavlova said: “This partnership will reinforce the electricity transmission in and around the country and thus benefit all citizens and strengthen cohesion in the region.
“By facilitating the integration of renewables, this project will also contribute to supporting the energy transition of the Czech Republic, in line with the objectives of the EU Green Deal and our recently approved EIB Climate Bank Roadmap. Ensuring a just transition to a low carbon economy is essential to achieve a resilient future for all and I am very pleased to partner with ČEPS in this endeavour.”
The EIB investment will span over 2021 to 2024.
Martin Durcak, ČEPS Chairman of the Board of Directors added: “Reliable operation of the transmission system and thus secure electricity supply in the Czech Republic and the European region are ČEPS’s priority tasks. Thanks to the co-operation with the EIB, ČEPS will further fulfil its extensive investment programme and contribute to the safe operation of the Czech and regional transmission grid.”