RESA ELECTRICITY NETWORK UPGRADE

Promoter – Financial Intermediary

RESA SA

Location

• Belgium

Description

The project consists of an investment programme for electricity distribution in the period 2023-2026, including the renovation, reinforcement and extension of distribution infrastructure, the renovation and digitalisation of network control systems and the installation of smart meters.

Additionality and Impact

The project supports the modernization, reinforcement and digitalisation of the electricity distribution network infrastructure in Belgium, in the Walloon region. The project caters for demand growth, the connection of new network users and the integration of renewables, improving the quality of service and the efficiency of operations. The Programme contributes to Bank's lending priority objectives on Climate Action and Environmental Sustainability and it aligns with the REPowerEU objectives. The financing of the programme will contribute to the Bank's ELP themes on Securing the Enabling Infrastructure (energy networks) and Innovative technologies and new types of energy infrastructure (smart meters). The operation addresses a number of market failures, including reducing carbon and air pollution externalities, increasing security of energy supply, reducing the risk of supply interruptions as well as improving energy efficiency via reductions of electricity consumption

The project supports Belgium Long-Term Climate 2050 Strategy set out in the National Energy and Climate Plan (NECP), the Plan Air Climat Energie (PACE) 2030 of the Walloon Region, as well as EU policies on energy and climate, by enhancing critical infrastructure for decarbonisation.

The project is expected to deliver good economic benefits and good social benefits. The promoter is experienced in works of this nature and has a sound project management system in place. 

The EIB support to this operation is expected to provide tangible value-added benefit, positively contributing to the promoter's capital intensive investments by offering more flexible terms compared to the commercial banks. EIB's involvement provides a flexible financial product to the borrower including flexible drawdowns, availability period and long tenors. This allows the borrower to diversify its financing sources.

Objectives

The operation caters for demand growth, the connection of new network users and the integration of renewables, improving the quality of service and the efficiency of operations.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

EUR 190 million

Total cost (Approximate amount)

EUR 258 million

Environmental aspects

The project includes components that may fall under Annex II of the Environmental Impact Assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, which requires the competent national authority to determine the need for an EIA. The impacts that can be typically expected for some schemes relate to visual impact, vegetation clearance, collision and electrocution of flying vertebrates, electromagnetic fields, noise nuisance, and disturbances during construction, as well as the possible impacts on protected fauna and flora (Habitats 92/43/EC and Birds 2009/147/EC).

Procurement

The promoter has to ensure that contracts for implementation of the project have been and will be tendered in accordance with the applicable EU procurement legislation: Directive 2014/23/EU / 2014/24/EU / 2014/25/EU as well as Directive 92/13/EEC or Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.

Status

Signed - 28/12/2023