Image courtesy EBRD
The European Bank for Reconstruction and Development (EBRD) is investing €50 million ($56.2 million) in Bulgarian grid modernisation, including smart meter installations, underground line upgrades, and renewable assets.
The €50 million is being invested in the €500 million ($561.9 million) senior secured bond issuance by the country’s Eastern European Electric Company B.V. (EEEC), the energy subholding of Eurohold Bulgaria AD, a business group in Central and Southeastern Europe with positions in insurance and energy sectors.
The funds will be used to modernise the electricity grid at Electrodistribution Grid West (EDG West) during the five-year lifetime of the bond.
Specifically, the modernisation programme includes smart meter installations, underground electricity line upgrades, and new or retroactive grid connection financing for renewable assets, which are expected to contribute to climate change mitigation efforts and result in up to 194GWh of energy savings annually.
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Manuela Naessl, EBRD Head of Bulgaria, commented in a release: “This landmark transaction is not only a notable step forward for Bulgaria’s green transition but also enhances the country’s visibility in international debt capital markets.
“Our €50 million investment supports the modernisation of critical energy infrastructure while setting a strong precedent for other private sector issuers in the region.”
According to the EBRD, the grid modernisation financing marks an important element in advancing Bulgaria’s net-zero greenhouse gas emissions target by 2050.
In January, Bulgaria Electricity System Operator (ESO) signed a contract with the country’s Ministry of Energy to implement the first group of investments under the GREENABLER project, to modernise the power transmission network and increase its transmission capacity.
The large-scale investment aims to modify the national electricity transmission network to accommodate the integration of renewable energy production.
According to the EBRD, Bulgaria remains the EU’s most energy-intensive economy.
To date, the EBRD has invested nearly €4.8 billion in 307 projects in Bulgaria.
