Portugal: EIB lends EUR 80 million to REN to upgrade the transmission system

The European Investment Bank (EIB) is lending EUR 80 million to Redes Energéticas Nacionais SGPS, S.A. (REN) in support of its multi-component investment programme covering the period 2014-2019. This programme includes renewable energy connections and the reinforcement and upgrading of the Portuguese electricity transmission network. The finance contract was signed in Lisbon today by EIB Vice-President Román Escolano and the CEO of REN, Rodrigo Costa. This is the first tranche of a EUR 200 million loan.

EIB Vice-President Escolano highlighted that “This EIB loan will strongly support REN’s investment programme, which will improve the Portuguese electricity transmission network infrastructure and the connections of additional generation capacity from renewable energy sources. Additional to other loans dedicated to support REN’s investments in the area of natural gas, this is the third EIB loan for investments in the electricity transmission grid, evidencing the excellent collaboration between the two institutions.”

The investment programme comprises numerous schemes to extend and improve the Portuguese electricity transmission network. The programme is geographically dispersed throughout mainland Portugal and it is expected that the majority of investments will be in areas designated as convergence regions.

This investment will enable the integration of renewable energy sources and the connection of additional hydro and wind capacity. It will also improve network operation and efficiency and mitigate environmental impacts.

This is the third loan of this type supporting the upgrading of the national electricity transmission system. The EIB and REN have a long-standing relationship, which started in 1994 with the entity from which REN emerged.