The European Investment Bank has agreed to provide a loan of €300 million ($349 million) to Dutch electricity network company Alliander to expand its electricity infrastructure in the Netherlands.
The loan will be used to finance parts of the renewal and expansion of the distribution network used by Liander, a subsidiary of Alliander, to distribute electricity to customers. Completion of the investment program is expected in late 2018.
“Network operators play an important role in the transition to a sustainable energy supply in the future; this will require substantial investments. The EIB is very pleased to be able to contribute to this through this loan,” said Pim van Ballekom, EIB vice president.
Improvements will be made to the grid in the areas where Liander operates, which include the Provinces of Gelderland and North Holland, large parts of the Provinces of Friesland and Flevoland, and part of the Province of South Holland.
“With this loan, the EIB contributes to the diversification of our funding sources, and will be financing part of our investments over the coming years,” said Mark van Lieshout, Alliander’s CFO. “These investments are necessary to enable the transition to a sustainable energy supply and ensure that the energy supply in the future will remain affordable, reliable and accessible.”
In June this year, EIB also agreed to provide a loan of €500 million ($581.7 million) to Spanish electric utility company Iberdrola to modernize its electricity infrastructure in the country.