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It will support regional cohesion by facilitating power exchanges and transit flows
On 21 December, the European Investment Bank (EIB) shared that it has signed a green loan agreement worth CZK 3.6 billion (EUR 142 million) with the state-owned Czech Transmission System Operator ČEPS. According to EIB, this massive investment seeks to modernise the country’s transmission network and strengthen its electricity infrastructure until 2025.
Beyond this, the substantial loan will reportedly help the country replace economically obsolete electricity transmission infrastructure, increase the capacity of electricity supply in order to meet demand, and reduce congestions in the region.
It is important to note that ČEPS’ grid is located centrally in the European North-South transmission corridor. For this reason, the EIB reports that it is a crucial link between regional electricity markets. As such, the substantial loan will support regional cohesion, facilitating power exchanges and transit flows from Germany to Austria via Poland and Czechia. In a press release, EIB Vice-President Lilyana Pavlova commented:
“This project will reinforce the electricity transmission in and around the country for the benefit of 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 EIB Energy Lending Policy. Ensuring a just transition to a low carbon economy is a key priority for the EIB, as the EU’s Climate Bank.”
ČEPS’ Chairman of the Board of Directors Martin Durčák also expressed his delight with the investment, explaining that it is vital, considering the ongoing fundamental changes in the energy sector. Durčák went further, sharing that the loan will allow ČEPS to meet the new requirements associated with these changes whilst continuing to strengthen the security of Czechia’s transmission system.
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Silesian is spoken by about half a million people in the south of the country
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