Transmission system operator Tennet receives priority loan for the replacement construction of the Ostbayernring power line

Source: Energy & Management Powernews, 20 . October 2022

The transmission system operator Tennet receives a priority loan of 450 million euros from the European Investment Bank for the replacement construction of the East Bavarian Ring power line.

It is already the ninth loan that the European Investment Bank (EIB) grants Tennet. As the partners announced in a joint statement, the current loan brings the EIB's total financing for projects with Tennet to 2.1 billion euros.

The 450 million euros now provided are to benefit the replacement construction of the Ostbayernring power line. This is a 380-kV overhead line about 185 kilometers long. It runs in southeastern Germany between the Redwitz, Mechlenreuth, Etzenricht and Schwandorf substations. The Eastern Bavarian Ring is part of the nationwide grid development plan, which is intended to achieve higher grid capacity and better integration of renewable energies.

The Eastern Bavarian Ring plays an important role here for the regions of Upper Franconia and Upper Palatinate, as Tennet states: Along the route, there is often significantly more electricity from wind power and photovoltaics than is consumed locally. However, green energy is lacking at Bavaria's major industrial sites. The East Bavarian Ring is intended to remedy this situation, but it is also an important supply line for the regions. The new replacement line, which will have a much higher transport capacity compared to the old 380/220 kV line, runs largely along the old route, which will later be dismantled.

"The new power line is of crucial importance for the integration of a greater amount of renewable and volatile energies into the power grid in Bavaria," clarifies EIB Vice President Kris Peeters. The East Bavarian Ring is a good example of how sustainable financing can simultaneously strengthen the security of supply and the green transformation of an industrial region, adds Arina Freitag, Chief Financial Officer of Tennet. The EIB is the institution of the European Union. Its shareholders are the EU member states. The bank provides long-term funding for sound projects that meet EU objectives. Its priorities are climate and environment, development, innovation and knowledge, small and medium-sized enterprises, and infrastructure and cohesion.

Author: Davina Spohn