The European Investment Bank (EIB) has agreed to provide €100m loan to Finland-based electricity distribution system operator Elenia.

The funding will help the company to improve the power supply quality and security of the company’s distribution network.

The company will replace high and low-voltage cables, substations and transformers.

Elenia’s long-term investment plan focuses on developing underground electricity network and replacing old overhead lines that are at the end of their useful life to secure uninterrupted availability of electricity.

The EIB loan is also expected to support Elenia in successfully continuing its capex programme in the region.

Elenia intends to increase the underground cabling rate of the electricity distribution network to 75% by 2028

By 2028, the company aims to increase the underground cabling rate of the electricity distribution network to 75% from its present 50%.

This will help the company to reduce outages and maintain uninterrupted electricity supply to its customers.

Elenia Tommi Valento said: “In these troubled times it is very important that Elenia can continue its capex programme as planned. 

“We need to try to keep the economy functioning to avoid companies going into financial distress and unemployment rising. The execution of capex programme brings substantial work for our contractor partners and their subcontractors.” 

EIB has been offering long-term loans to support sustainable investment projects that contribute to furthering EU policy objectives. 

In February, the EIB agreed to provide €100m to reinforce and modernise the electricity distribution network in Greece.

The new funding, guaranteed by the Hellenic Republic is the second part of the 20-year, €255m ($276.1m) loan agreed in 2019, to upgrade Greek national electricity network.

Currently, the company operates in over 100 municipalities with nearly 67,600km of distribution network.