December 24 (Renewables Now) - State-owned Czech transmission system operator CEPS has secured a CZK-3.6-billion loan, equivalent to EUR 142 million (USD 160.6m), from the European Investment Bank (EIB) to fund grid modernisation works in the country in the 2021-2025 period.
The project is expected to improve the security of the electricity system and aid in the integration of renewables once obsolete infrastructure is replaced. It will also support power exchanges and transit flows chiefly from Germany to Austria through Poland and the Czech Republic, EIB said this week as it announced the signing of the loan.
EIB vice-president Lilyana Pavlova said the project will reinforce the electricity transmission in and around the country and boost cohesion in the region.
CEPS chairman of the board of directors Martin Durcak commented it is crucial to prepare the network for the fundamental changes the energy sector is undergoing.