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Northern Powergrid secures £250m EIB loan for network upgrade

Northern Powergrid has secured a £250 million investment over two years from the European Investment Bank (EIB) to help fund a £3 billion eight-year upgrade programme of its energy network in the North East.

The investment is one of the largest loans secured from the EIB by a UK distribution company and will be used by Northern Powergrid to reinforce regional power networks in Yorkshire and the North East using smart grid technology.

The improvements will reduce and shorten power cuts and protect the network from severe weather, Northern Powergrid said.

The new technology will also provide additional capacity for future customers while cutting the number of new transformers and cables required.

Northern Powergrid’s finance director Tom Fielden said securing “competitive financing” is an “important milestone in our business plan”.

The network operator’s eight-year investment programme aims to improve connections to 900MW of renewable energy generation, such as onshore wind and solar farms, and the undergrounding of 100km of overhead power lines in protected landscape areas.

The EIB’s vice-president Jonathan Taylor said the bank “recognises the importance of ambitious investment being carried out by regional power companies.

“Investment in UK energy infrastructure is essential to upgrade equipment, ensure supply and expand innovative services”, Taylor added.

The EIB has invested more than £10 billion in the UK energy sector including in national transmission networks and regional power distribution, and interconnectors to Ireland and mainland Europe.