The parent company Eurogrid GmbH has concluded a EUR 850 million green loan agreement for the expansion and construction of substations within the 50Hertz power grid. This transaction is part of the “Corporate Climate Protection Initiative” program promoted by the KfW development bank and involves a consortium of ten financial institutions under the management of Deutsche Industriebank IKB.
50Hertz power grid as the backbone of the energy transition
The loan, which has a ten-year term, will be used for interventions in critical nodes of the 50Hertz network. These include the construction of new substations construction of new substations to the modernization of existing facilities with state-of-the-art technologies. The objective: to facilitate the safe integration of renewable energies, such as wind and solar, into the transmission system.
The initiative represents a further step in Eurogrid’s strategy to finance sustainable infrastructure. sustainable infrastructure aligned with ESG criteria. During this year, the company has also issued several green bonds, consolidating a sustainability-oriented financial model. In total, almost €4 billion has already been mobilized for investments that will be operational by 2025.
Technology for a more robust power grid
The new substations will be equipped with advanced solutions that guarantee frequency and voltage stability in the power system. This investment in high-capacity infrastructure is crucial to maintain the security of the electricity supply. electricity supply in a scenario in a scenario with increasing participation of renewable energies.
Christine Janssen, Chief Financial Officer of 50HertzChristine Janssen, chief financial officer of 50Hertz, emphasized that this financing reaffirms the confidence of the banking system in Eurogrid’s vision. The collaboration with KfW and others reflects the joint commitment to strengthen Germany’s energy system in a sustainable way.
Source and photo: 50Hertz