The European Investment Bank (EIB) is lending $420.14 million to Czech energy supplier, CEZ to upgrade and expand the country’s electricity-distribution system.
The EIB credit will improve energy services and green power supply in the Czech Republic.
CEZ plans to refurbish electricity networks, install remotely controlled energy-supply systems and build infrastructure to integrate new renewable-energy sources such as solar and wind power. With the EIB loan, CEZ will upgrade the power grid to absorb up to additional 5.5 GW of new renewables.
The increase in renewables supply in the Czech Republic will improve the country’s energy independence. The EIB loan supports the European Union’s REPowerEU initiative to reduce dependence on Russian fossil fuels and accelerate the green transition.
The CEZ work funded by the EIB credit is due for completion in 2026.
The new financing follows a $829.76 million EIB loan to CEZ signed in 2022. The EIB has provided about $2.94 billion to CEZ for projects contributing to reliable, efficient and green electric supply and generation in the Czech Republic.
“CEZ is modernising and decarbonising its power plant portfolio as well as facilitating the overall transition to a zero-carbon Czech energy sector,” said CEZ Chief Financial Officer, Martin Novák. “The overall volume of our investments to modernise our electricity network is increasing every year and gradually changing the shape of the whole distribution environment, where the need for faster access to information is growing.”
