The European Investment Bank will loan 400 million euros to Czech energy supplier ČEZ Group for the upgrade and expansion of the country's power distribution network.
ČEZ stated that it plans to use the funds to refurbish the network, install remotely controlled energy supply systems, and construct infrastructure capable of integrating solar and wind energy.
The modernization project is expected to help absorb up to 5.5 GW of new renewable energy and be completed by 2026.
European Investment Bank Vice President Kyriacos Kakouris stated that the EIB is committed to financing projects that enhance energy resilience, support the green transition, and strengthen the Czech Republic's energy independence.
"The overall volume of our investments to modernise our electricity network is increasing every year and gradually changing the shape of the whole distribution environment, where the need for faster access to information is growing. Modern technologies are penetrating all parts of electricity networks and, with our strong partnership with the EIB, we are committed to speeding up the process," said ČEZ Chief Financial Officer Martin Novák.
The Czech government is trying to introduce new retroactive cuts on feed-in tariffs (FITs) granted to PV installations between 2008 and 2010. This mostly affects approximately 2 GW of solar power plants as well as biomass plants commissioned between 2006 and 2013. The proposed cuts negatively affected investors' ability to cover interest payments and led to defaults. Recent investments could be jeopardized if the proposed measure is implemented
