Belgium: EIB lends €450 million to ORES to modernise the Walloon power grid

This article is published in association with European Investment Bank.

• This funding supports unprecedented growth in investment in distribution infrastructure to underpin the development of renewable energy and expanded electricity use in Wallonia.
• This is the second loan granted by the European Investment Bank (EIB) to ORES, following a €550 million financing operation signed in 2018.
• For the EIB, this new operation is in line with its strategic priority to support the energy transition, as part of its Climate Action Plan.

Accelerating the energy transition in Belgium and Wallonia

Greenhouse gas emissions are decreasing in Belgium, but the pace is still insufficient to meet the 2050 climate neutrality target. According to an analysis by the Climate Change Department of the Federal Public Service (FPS) – Public Health, Food Chain Safety and Environment published in early November, the country must increase the pace of its decarbonisation process to at least twice the current level.

Despite this, positive signals are emerging in a number of sectors, particularly energy. In recent years, individuals and companies have stepped up the replacement of the most polluting fossil fuels with low-carbon solutions that are mainly electric.

Power grids must therefore absorb a greater volume of renewable energy while supporting the electrification of domestic uses – mobility and heating – as well as industrial processes, in addition to the development of storage and battery fleets. This shift places power grids more than ever at the heart of the energy transition and the achievement of climate goals.

A renewed strategic partnership and concrete action

As a major player in financing the European Union’s energy transition, the EIB supports Member States and regions in their decarbonisation projects. Today, it is providing a €450 million loan to ORES to finance its fast-accelerating 2025-2027 investment programme.

This funding will be dedicated to investments in ORES’s electricity distribution network, including for the construction of new substations, overhead line replacement, reinforcement of underground cables, deployment of smart meters, and network automation to facilitate the connection of renewable energy generation and the development of e-mobility. These operations will be conducted in the provinces of Hainaut, Namur, Walloon Brabant, Luxembourg (BE) and Liège.

Benefiting from particularly favourable financing conditions thanks to the AAA rating of the EU institution, the funds will be drawn down over two years and paid back at fixed or variable rates over a maximum period of 20 years.

This financing supplements an initial loan of €550 million granted in 2018, bringing to €1 billion the total funds made available by the EIB to modernise energy distribution infrastructure in Wallonia.

The partnership between the two organisations is based on a strong relationship built over time: the EIB welcomed the rigorous monitoring of investments, the transparency of trade and the excellent management of the first loan.

Chairman of the Management Committee of ORES Fernand Grifnée welcomed the renewal of this partnership: “The Board of Directors and the management team as a whole perceive this second EIB loan as a new sign of trust from the European Union. It confirms the relevance of the strategy we have developed with our stakeholders, demonstrates the financial strength of our company and underlines the quality of our governance. At a time when the electricity distribution network requires investments that are disproportionate to those of the past, the Board of Directors and the management team as a whole consider this support key to meeting the current and future needs of businesses and individuals. Investing in the network now is laying the foundations for sustainable growth in the future, for the benefit of Wallonia, its municipalities and its people.”

EIB Vice-President Robert de Groot said: “Security of supply and access to affordable energy are basic needs for people and businesses. In the context of the green transition, the modernisation of ORES’s infrastructure is essential to continue safeguarding these conditions. The scale of investment required is substantial, and will be made possible by this EIB financing to ensure that people and businesses have a continuous supply of secure and affordable electricity.”

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, it finances investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in its Climate Bank Roadmap. Almost 60% of annual EIB Group financing supports projects that directly contribute to climate change mitigation and adaptation, and a healthier environment.

ORES: Our 2 900 employees take pride in managing the daily supply of electricity, natural gas and public lighting to some 1.5 million customers – individuals, professionals, businesses and public authorities. The distribution networks managed by our teams for the municipalities associated with our company – 75% of Walloon municipalities – cover in total more than 53 000 km in electricity and over 10 000 km in natural gas.

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