Billions from the European Investment Bank will help develop the transmission system

2/3/2017

The European Investment Bank will lend CZK 3 billion to the Czech transmission system operator ČEPS for the implementation of its investment plan. The money is intended for
25 projects. The loans have a maturity of 8 years including a three-year grace period. 

This, combined with other loans and the Company’s own resources, will enable
the implementation of the investment program for the period 2016-2020. The Bank provides loans to a maximum of 50 percent of the total project investment costs. 

“The loan from the European Investment Bank will ensure the reliable performance of our investment program under favorable conditions. The loan was provided in line with
the Company’s long-term financing strategy,” says Jan Kalina, Chairman of the Board of
ČEPS, a.s.

The first tranche is expected in June 2018. The funds will be used for modernization and development of the transmission system, including the construction of a new 420 kV substation
in Vítkov, extension of the substation Přeštice or reconstruction of the encapsulated substation Chodov, as well as the upgrade of the system of information and communication technologies.

The new 420 kV Vítkov substation will enable to connect sources of electrical energy (especially renewable sources) into the distribution network in the area of Karlovy Vary region and ensure reliable power supply in the area. The implementation of this action will bolster the transmission system in the West Bohemia and will create conditions for a gradual transition from the 220 kV to 400 kV system. The construction of the substation will bring more stability, safety and efficiency to the operation of the Czech transmission system.
 
The extension of the Přeštice substation will ensure the upgrade of the exhausted equipment and will allow further development of the 400 kV network in the future.

Reconstruction of the encapsulated Chodov substation is necessary not only for the smooth and safe operation of the transmission system, but above all to ensure a reliable supply for
the capital city.

Press Release