| Project Detail |
Description
The investment programme to be financed by the Bank comprises schemes for the reinforcement, refurbishment and modernisation of the Promoters distribution network in Italy during the period 2020-2024.
Additionality and Impact
The Project fully supports national and EU policies on energy and climate, both by developing the infrastructure required to increase the share of renewables in electricity generation, and to make it more resilient to climate change. The investments tackle multiple market failures, in particular they increase the ability of the network to integrate more RES generation capacity and to make it more resilient to climate change. Most of the investments, especially the ones for improving quality of service will benefit Cohesion regions. In line with the draft EU Taxonomy, electricity distribution infrastructure in the interconnected European System, being on a trajectory to decarbonisation, is considered eligible for climate change mitigation.The economic rate of return is excellent and significantly above the financial rate of return, resulting in an excellent "social benefit". The Promoter is an experienced operator of electricity distribution networks with a sound project implementation structure and a certified environmental management system. With the appropriate conditions in place (please see ESDS), the project is acceptable for financing in environmental and social terms.
The EIB support to this operation is expected to provide a tangible value added, contributing to accelerate the implementation of the underlying schemes, by means of competitive cost of funding, maturity, and disbursement mechanics. The proposed loan structure includes an innovative pricing adjustment mechanics linked to the borrowers achievement of pre-defined sustainable development KPIs. Similar structures may be implemented with other counterparts in other geographies, as a tool to deliver on the EIB climate roadmap.
Objectives
The investment programme to be financed by the Bank comprises schemes for the reinforcement, refurbishment and modernisation of the Promoters distribution network across Italy. The investment programme includes (a) new and extension of existing high to medium voltage substations as well as new overhead lines, up to 150 kV, (b) rehabilitation of underground medium voltage networks and substations and (c) remote control and automation investments. |
