REN GREEN ENERGY LOAN

Investments under the promoter's 2022-2026 investment plan, aiming at the extension and reinforcement of the electricity transmission network throughout Portugal.

The project is expected to support the efficient operation of the electricity transmission network in Portugal, to increase and modernise the capacity of the network, to enable the connection and integration of new renewable energy generators and to enable the promoter to maintain the reliability and quality of electricity supply.

The Project will increase the flexibility and resilience of the electricity grid in Portugal and enable the integration of additional Renewable Energy (RE) generation, thus contributing to long-term national and EU decarbonisation targets, and it will help the promoter to maintain the reliability and quality standards of electricity supply in the country.

The project addresses two main market failures. It aims at increasing security and reliability of electricity supply, which have characteristics of a public good. EIB's financing will also help to ensure the integration of renewables and, indirectly, increased electrification (e.g. in transport, industry, etc.), which reduces negative climate and environmental externalities.

The majority of the project components are located in EIB cohesion priority regions in Portugal. In line with the EU Taxonomy, electricity grid infrastructure in the interconnected European system - being on a trajectory to decarbonisation - is considered eligible for climate change mitigation. In addition, a portion of the project is dedicated to improving the resilience of the network to climate change events.

The financing of this project is therefore in line with the Bank's lending priority objectives on Energy (Securing the Enabling Infrastructure) as well as the transversal objectives on Climate Action (mitigation and adaptation) and Economic and Social Cohesion.

The operation will also contribute to the achievement of several United Nations Sustainable Development Goals, with special focus on: SDG 7 (access to affordable, reliable, sustainable and modern energy for all); SDG 13 (combat climate change and its impacts) and SDG 10 (reduced inequalities, as the majority of the project will be located in EIB Cohesion Priority regions).

The Bank's financial contribution is considered very good and valuable to the client, as the EIB's offering is more favourable than other market alternatives under various dimensions (e.g. longer tenor, availability and grace periods, convertible or revisable rates). The Promoter deems financing with a "Green Loan" label as a stamp of quality on its investments, being in line with its 2021-24 Strategic Plan and its positioning in the green market.

By their technical characteristics, some programme schemes fall under Annex I or Annex II of the Environmental Impact Assessment Directive. The impacts that can be typically expected for these sub-projects relate to visual impact, vegetation clearance, electromagnetic fields, noise nuisance, impact on flying vertebrates and disturbance during construction. Environmental impact studies will be carried out as applicable and mitigating and/or compensation measures will be applied as necessary.

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