ENEXIS ELECTRICITY NETWORK UPGRADE AND EXPANSION

Promoter – Financial Intermediary

ENEXIS NETBEHEER BV

Location

• The Netherlands

Description

The project consists in an investment programme for electricity distribution in the period 2023 to 2024, including refurbishment, upgrading and expansion of existing electricity distribution infrastructure and the installation of smart meters in five provinces in the Netherlands.

Additionality and Impact

The project supports the modernization, reinforcement and digitalisation of the electricity distribution network infrastructure in five provinces in the Netherlands, in Groningen, Drenthe, Overijssel, North-Brabant and Limburg. 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 blackouts as well as improving energy efficiency via reductions of electricity consumption.

The project supports the Netherlands' long-term climate strategy set out in the National Energy and Climate Plan (NECP) and EU policies on energy and climate, by enhancing and extending critical infrastructure for decarbonisation.

In line with the EU Taxonomy, electricity grid infrastructure in Europe is considered eligible for classification as an activity contributing to climate change mitigation and will contribute to the EU Economic, Social and Territorial Cohesion by partly investing in EIB Cohesion Priority regions.

The financing of this project is in line with the Bank's lending priority objectives on energy as well as the transversal objectives on Climate Action. 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 investment loan will have a positive financial contribution for the Borrower as the EIB will be able to offer attractive interest rates compared to the debt capital markets. In addition, the finance contract will offer flexible disbursement conditions and long maturities. The EIB term loan is innovative for the client as it is currently not available in the banking market.

Objectives

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.

Sector(s)

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

Proposed EIB finance (Approximate amount)

EUR 500 million

Total cost (Approximate amount)

EUR 1446 million

Environmental aspects

The Project includes components that may fall under Annex II of the 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 Bank will require the promoter 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 - 20/12/2023