The European Investment Bank (EIB) signed a CZK 5 billion loan (USD229.13 million) with ČEPS, the state-owned Czech Transmission System Operator. This investment aims at strengthening the electricity transmission infrastructure of the Czech Republic.

The project will improve the security of the electricity system and facilitate power exchanges and transit flows mainly from Germany to Austria through Poland and the Czech Republic. As EU Project of Common Interest, it will also enhance the integration of renewables in the network.

Most of the investment will occur in cohesion priority regions and support the efficient operation of the electricity market in the Central and Eastern Europe region.

Lilyana Pavlova, Vice-President of EIB, said: “This partnership will reinforce the electricity transmission in and around the country and thus benefit all citizens and strengthen cohesion in the region. This project will also contribute to supporting the energy transition of the Czech Republic."

The Czech Republic is a key country in Central-Eastern Europe for power trading and transit, given its location, in particular next to Germany. Solving network bottlenecks in neighbouring countries and supporting the growth in renewables in the area is essential to ensure safe and resilient operation of the Czech transmission network and maintain security of supply. This EIB investment will span over 2021-2024.