EU Loaning UK Power Grid $2.4 billion
UK power networks, infrastructure need massive investment; loan for improving grid, connecting new power generation.
The European Union's bank will loan Britain's National Grid (NGG), 1.5 billion pounds ($2.4 billion), its biggest ever single loan, the bank said on Friday.
The European Investment Bank (EIB) loan will go towards upgrading Britain's ageing power grid, improving networks and connecting new power generation.
"This represents the largest ever single loan made by Europe's long-term lending institution," the EIB said in a statement.
No details were provided about re-payment conditions for the loan.
The long-term loan will include capital investment by National Grid to improve infrastructure between the Wirral, northwest England, and Scotland and the London Power Tunnels, the EIB said.
The loan will also go towards improvements to protect critical infrastructure from floods and provide substation capacity needed for new connections to offshore wind farms and new electricity interconnectors to continental Europe.
"Investment in the UK electricity transmission network is essential to prepare for future demand, connect new sources of renewable energy and upgrade old facilities," said Jonathan Taylor, EIB's vice president.
Britain has estimated it needs around 110 billion pounds of investment to replace ageing fossil fuel and nuclear power stations and prevent power shortages into the 2020s.
Reporting by Nina Chestney
