Slovenia’s Elektro Ljubljana secures €50m for distribution grid upgrades

The European Investment Bank (EIB) is lending Slovenian electricity company Elektro Ljubljana €50 million ($55.3 million) to expand and upgrade the power-distribution network in central and southeastern parts of the country.

Elektro Ljubljana operates the largest energy distribution network in Slovenia, serving more than 353,000 people. The EIB loan is for works scheduled in 2024-2026 to make Slovenia’s electricity infrastructure more reliable, efficient and sustainable.

The project will include extensive upgrades such as refurbishing and constructing medium and low-voltage overhead lines, underground cables, power transformers and substations.

It will also deploy smart meters and other advanced components to improve energy savings, as well as pave the way for new EV charging stations, renewable-energy generators and heat pumps.

Commenting in a release was EIB vice-president Kyriacos Kakouris: “This partnership with Elektro Ljubljana not only underscores the EIB’s commitment to infrastructure development but also addresses a critical need in Slovenia’s energy sector.

“Expanding and ensuring the reliability of the distribution network is essential to supporting the nation’s electrification efforts, particularly in integrating renewable-energy sources, electric-vehicle charging stations and heat pumps.”

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The total cost of the project is projected to be €164.2 million ($181.5 million). The EIB loan offers Elektro Ljubljana favourable and flexible financing terms and allows the company to diversify its financing sources. The credit is complemented by €55.2 million ($61 million) in EU funding. The remaining costs will be covered by Elektro Ljubljana.

Said Elektro Ljubljana’s president of the Management Board Urban Likoza: “The massive electrification of transport, heating and renewable energy that we have seen in recent years has led to a huge increase in the financing needs for electricity distribution infrastructure.

“The agreement we have signed today with the EIB is an important step in financing the primary distribution infrastructure to achieve the green transition, meet the objectives of the 10-year network development plan and ensure sufficient capacity for the diversification of renewable energy sources.

“We are pleased that the EIB has also recognised the importance of investments in the distribution network, which is key to a reliable and efficient electricity supply in Slovenia.”

Added state secretary Tina Seršen of Slovenia’s Ministry of the Environment, Climate and Energy: “I welcome the signing of the contract between the EIB and Elektro Ljubljana, as it represents an important step towards the implementation of the planned investments in the distribution network.

“The distribution network is and will be the backbone of the green transition and a key factor in democratising energy self-sufficiency for the people. The Ministry, through the Recovery and Resilience Plan grants, as well as through the adoption of relevant legislation, supports not only Elektro Ljubljana but also other electricity distribution companies in making the necessary investments.”

The EIB has committed more than €7.6 billion ($8.4 billion) in total financing for projects in Slovenia since the start of its operations in the country.