TenneT Ostbayernring electricity transmission project gets €450m loan from EIB
TenneT has secured a senior loan of €450 million from the European Investment Bank (EIB) for its Ostbayernring electricity transmission project in Bavaria, Germany.
As part of the project, the Netherlands-based electricity transmission system operator (TSO) will build a 185km transmission corridor between Redwitz to Schwandorf in Southeastern Germany.
Kris Peeters — EIB Vice-President, commenting on the Ostbayernring electricity transmission project, said: “The new electricity line is crucial for the integration of an increased amount of regenerative and volatile energy into the power grid in Bavaria. The EIB is proud to continue the longstanding partnership with Tennet by supporting their first green-loan project.
“The upgrade of the Ostbayernring will help reduce greenhouse gas emissions in Germany and benefit energy-security in Europe as a whole.”
The Ostbayernring transmission corridor project is part of the Germann grid expansion plan which aims to boost the grid’s capacity and make it ready for improved integration of renewable energy.
TenneT secures €450m loan from EIB for the Ostbayernring electricity transmission project. Photo courtesy of TenneT.
According to TenneT, of late there has been a considerable increase in the renewable energy available in northern Germany near the Baltic Sea and the North Sea, while various nuclear and thermal power plants in Bavaria have been closed. The current grid structure has to be modified to meet the challenges of energy transportation from north to south as well as within the regions, said the Dutch TSO.
TenneT expects the Ostbayernring electricity transmission project to play a major role in the Oberpfalz and Oberfranken regions. The grid operator said that along the route, there is already usually significantly more energy generated from wind power and solar photovoltaic plants than what is required locally.
Commenting on the Ostbayernring electricity transmission project, Arina Freitag — TenneT Chief Financial Officer, said: “We welcome the fact that EIB is once again underlining its commitment to our grid expansion projects and thus to the energy transition.
“The Ostbayernring is a good example of how sustainable financing can strengthen security of supply and the green transformation of an industrial region at the same time.”