EIB offers EUR 500 Million Loan to Endesa to upgrade its Distribution Grid

The European Investment Bank is all set to provide a EUR 500 Million Loan To Endesa in a bid to encourage modernisation of electricity distribution grid in Spain. The project aims to be executed over the next 2 years to enhance the quality and efficiency of Endesa’s electricity supply facilities rendering it more eco-friendly and sustainable thus switching to renewable energy sources. The Loan agreement was signed in Madrid by EIB Vice- President Roman Escolano and Endesa’s CEO, Jose Bogas.

The enhancements and expansions will be undertaken in six spanish regions ((Aragon, the Balearic Islands, Catalonia, the Canary Islands, Andalusia and Extremadura) and over 17,500 employment opportunities will be offered during the phase. New connections to renewable electricity sources will be rolled out thus enabling Endesa to strengthen its customer network and supply power meant to augment public transport. As per the scheme new Voltage lines will be laid, overhead power lines will be substituted with underground cables to assuage catastrophic implications on the environment and power outages owing to felling of trees.

The project aims to automate electricity facilities, accelerating remote control of Endesa’s substations incorporating advanced systems to ascertain leaks and illicit supply connections. Tweaks in the technology will pose benefits to customers for installation of over 2.5 million smart meters will inform the amount of electricity consumption thus ensuring comparison with time-based tariffs. The company’s five power grid control centers in Zaragoza, Barcelona, Palma de Mallorca, Seville and Las Palmas de Gran Canaria will be set up to operate anywhere across the distribution grid.

EIB Vice-President Román Escolano assured “One of the EIB’s priorities is to ensure the necessary finance is available to guarantee a secure and sustainable power supply. We are therefore pleased to support this project to revamp electricity facilities, with a two-fold objective: to enhance supply quality and contribute to tackling climate change through a more sustainable electricity system”.