The European Investment Bank is to provide £250m for investment over two years by Northern Powergrid to upgrade electricity distribution infrastructure, including 900MW of renewable energy.
The loan will support Northern Powergrid’s £3bn, eight-year investment programme and includes improving connections to onshore and offshore wind farms and solar power schemes.
It also covers the undergrounding of 100km of overhead power lines in protected landscape areas.
“Use of new technology supported by the investment scheme will allow greater electricity capacity to be added to the network without adding as many new cables or transformers as would traditionally be needed, and new smartgrid technology will reduce the need for more expensive network reinforcement,” Nothern Powergrid said.
Northern Powergrid finance director Tom Fielden said: “Securing competitive finance helps us deliver the best long-term value for our customers and this agreement is an important milestone in our business plan.”
EIB vice-president Jonathan Taylor said: “Investment in UK energy infrastructure is essential to upgrade equipment, ensure supply and expand innovative services.
“The EIB recognises the importance of ambitious investment being carried out by regional power companies and is pleased to provide a loan of £250m to support Northern Powergrid’s wider investment programme through one of our largest ever loans for energy distribution in the UK.”
Image: the investment will underground 10km of overhead power lines (sxc)
