E-Distribuzione secures €250m for grid innovation and digitalisation
Italy: intervention of E-distribuzione. Image courtesy Enel
Enel-owned distribution company E-Distribuzione and the European Investment Bank (EIB) have signed €250 million ($263.7 million) in sustainability-linked financing to support innovation and digitalisation of the electricity grid in Italy.
The financing marks the first tranche of a total €500 million ($527.4 million) agreement, aiming to improve the grid’s quality of energy distribution service and increase its resilience and ability to prevent and respond to future extreme weather events.
Sustainability-linked, Enel says the financing aligns with Enel Group’s ability to achieve a direct greenhouse gas emissions target (Scope 1), measured in grams of CO2eq/kWh, equal to or lower than 125gCO2eq/kWh by 2026 and equal to or lower than 72gCO2eq/kWh by 2030.
An additional KPI linked to the European taxonomy is also envisaged, conditional on the Group achieving at least 80% of total Capex aligned with the EU Taxonomy in the period 2024-2026.
The agreement is in line with Enel’s Sustainability-Linked Financing Framework , updated in January 2024, which fully integrates sustainability into the Group’s global financing programme.
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Stefano De Angelis, CFO of Enel, commented: “This new operation further strengthens the partnership between Enel and the EIB, which once again confirm their shared commitment to creating a more resilient and sustainable Europe through sustainable finance operations.
“The agreement also demonstrates the central role that networks play for Enel in accelerating the energy transition, as also underlined by the significant investments in this business sector envisaged in the recently announced 2025-2027 Strategic Plan.”
Enel Group’s 2025 to 2027 plan expects total gross capex to surge to €43 billion ($45.5 billion), with the majority, €26 billion ($27.5 billion) funnelled into the company’s grids segment.
Approximately 78% will be spent in Italy and Spain, two countries that Enel believes to be characterised by regulatory frameworks that can support investments.
Said Gelsomina Vigliotti, EIB vice-president: “With this agreement, the EIB confirms its position as the public financier of reference for Enel in its decarbonisation objectives.
“The financing will not only improve the stability of the electricity grid but will also contribute to Italy’s energy transition, reducing CO2 emissions and promoting the use of renewable energy.”
The financing forms part of the EIB’s RePowerEU initiative, which will invest an additional €45 billion ($47.5 billion) between 2022 and 2027 with the aim of triggering €150 billion ($158.2 billion) in investments, promoting the green transition and reducing Europe’s dependence on fossil fuels.
