Hungary: EIB and MVM deal for modernization of electricity supply network30.Oct 2020.
This is the seventh operation between the EIB and MVM since cooperation began in 1990. The European Investment Bank (EIB) and state-owned Hungarian Electricity Works (MVM) have signed a 120 million euros loan to modernize and expand the electricity supply network in southeastern 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 producers for some 785,000 customers in Bacs-Kiskun, Bekes, Csongrad-Csanad and Pest counties.
The project program 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 southeastern Hungary and support the sustainable, long-term development of the local economy.
New electricity 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.
With this loan, total EIB investment in the Hungarian energy sector reached 1.26 billion euros.