(Reuters) -French utility EDF and the European Investment Bank on Friday announced a 500 million euro ($585.4 million) financing deal for the second phase of a 1 billion euro overhaul of France's
EDF and European Investment Bank Finalize €500 Million Power Grid Upgrade Deal
EDF and EIB's Financing Agreement
(Reuters) -French utility EDF and the European Investment Bank on Friday announced a 500 million euro ($585.4 million) financing deal for the second phase of a 1 billion euro overhaul of France's public electricity network.
Investment Overview
European electricity grids have come under scrutiny in recent years as excess renewable energy production has raised interest in cross-border connections, and reinforcement is needed to upgrade and protect grids against climate change.
Renewable Energy Integration
The second phase of financing will cover about 40% of the investment cost for the connection of 7 gigawatts of renewable generation capacity and more than 2,500 kilometres of underground or distribution line replacement by EDF's subsidiary Enedis, the joint statement said.
EU Funding Initiatives
Nearly 90% of the wind and solar energy produced in France is integrated into the distribution network managed by Enedis.
EU governments agreed in June to lift the annual lending of the bloc's powerful European Investment Bank to 100 billion euros this year and treble its funding for the EU's defence industry.
($1 = 0.8542 euros)
(Reporting by Alban Kacher in Gdansk and Forrest Crellin in Paris; Editing by Jan Harvey, Alexandra Hudson)
