The Ostbayernring transmission route would be significant in terms of generating electricity from renewable sources like wind power and photovoltaics. The association between EIB and Tennet is quite longstanding.
October 20, 2022
The European Investment Bank (EIB) will grant a EUR 450 million senior loan to electricity transmission system operator TenneT. The investment will be infused in the expansion project – a 185-km power transmission route – called Ostbayernring, between Redwitz and Schwandorf in south-eastern Germany. The transmission route is part of Germany’s ambitious targets to achieve higher network capacity and expansion of renewable energies.
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The Ostbayernring would be significant, especially for the regions of Upper Franconia and Upper Palatinate, in terms of generating electricity from renewable sources like wind power and photovoltaics. Thus, the announced expansion is important for Ostbayernring in meeting the increased demand in the long term.
About the Green Loan, Mr. Kris Peeters, Vice-President, EIB, said, “The new power line is crucial for the integration of a larger amount of renewable and volatile energy into the power grid in Bavaria. The EIB is proud to continue its longstanding partnership with Tennet by supporting their first Green Loan project.”
The expansion of the transmission route will also help in reducing greenhouse gas emissions in Germany and improve energy security across Europe, affirms Mr. Peeters.
The partnership between EIB and Tennet has been quite longstanding. This ninth loan would make the total EIB financing for projects with TenneT EUR 2.1 billion. This is the third transaction in Germany, after Nordlink, which connects the power grids of Norway and Germany via the North Sea and the connection of offshore wind farms to the German grid.
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In the words of Ms. Arina Freitag, CFO of TenneT, “We welcome the renewed support from the EIB for our grid expansion and thus for the energy transition. The Ostbayernring is a good example of how sustainable financing can simultaneously strengthen the security of supply and the green transition of an industrial region.”
