The European Investment Bank (EIB) and MVM Hungarian Electricity Ltd. (MVM) have signed a €120 million loan to modernise and expand the electricity supply network in south-eastern Hungary. The investment will enable MVM to test advanced metering schemes, maintain the quality of service, meet growing demands for electricity in the region, improve the reliability of its supply network and integrate new renewable energy generators for some 785 000 customers in Bacs-Kiskun, Bekes, Csongrad-Csanad and Pest counties.
The project programme covered by the financing consists of the reinforcement of the electric supply network, refurbishment of high, medium and low-voltage substations, overhead lines and underground cables, and the installation of 600 distribution transformers and 210 000 advanced meters. The EIB loan will improve the quality of living and doing business in south-eastern Hungary and support the sustainable, long-term development of the local economy.
Special measures to protect local birds species, developed in cooperation with the Hungarian Ornithological Society, will also be implemented under the investment including the replacement of above-ground power lines with underground alternatives, and the installation of special equipment for bird protection.
EIB Vice-President Teresa Czerwinska said: “A reliable and modern electricity supply network is a key precondition for sustainable economic growth. This EIB financing will ensure both people and businesses in south-eastern Hungary continue to enjoy a reliable electrical power supply for decades to come. We support Hungary’s energy security, increasing the use of renewable energy sources, crucial for successful climate action in Europe. Together with our long-term partners in MVM, the EIB is looking forward to continuing to power Hungarian economic and social growth.”
János Sum, CFO of MVM, said: “Today we arrived at a new milestone of our three decades-long partnership with the EIB. The agreement signed today demonstrates the EIB’s appreciation of MVM’s ambitious strategy, its support for achieving the group’s sustainability objectives and its confidence in MVM’s stable and competitive operation.”
New electric energy consumption metering schemes will be tested in a pilot project implemented in the cities of Kiskunmajsa and Békéscsaba, where some 210 000 modern meters will be installed. Reliable electric power distribution will also enable Hungarian businesses and public institutions to continue operating even during major emergencies, such as the COVID-19 pandemic.
This is the seventh operation between the EIB and MVM since cooperation began in 1990. With this loan, total EIB investment in the Hungarian energy sector reached €1.26 billion.