Modern, safer electricity distribution networks for Slovakia with €350 million EIB loan to ZSE Group

This article is published in association with European Investment Bank.

• €350 million EIB loan to support modernisation and digitalisation of power distribution networks in Slovakia
• Investments to further strengthen security of supply, to enable integration of renewables into the network, to enhance system resilience and e‑mobility and deployment of additional smart meters
• Operation contributes to EU climate action, environmental sustainability, and cohesion, supporting jobs and regional development across Slovakia

The European Investment Bank (EIB) and Západoslovenská energetika (ZSE) Group have agreed on a €350 million loan to finance a multiannual investment program to continue modernising electricity distribution networks across Slovakia, including the Bratislava region.

The EIB loan will support ZSE Group upgrading high-, medium- and low-voltage overhead lines and underground cables, the modernisation of transformers and substations, the rollout of smart technologies, as well as grid automation. These investments will strengthen the reliability and quality of electricity supply and enhance Slovakia’s attractiveness as a location for business and industry.

EIB Vice-President responsible for Slovakia, Marek Mora, said: “This is the largest corporate loan we have signed in the country to date, further strengthening our decades-long role as a reliable partner for Slovak businesses. Modernisation of Slovakia’s distribution networks will strengthen the foundations of the Slovak economy, making it more resilient to modern challenges including meeting the projected increase in electrification. This will also create sound foundations for long-term, sustainable and green growth, faster job creation and an energy-independent future for Slovakia. EIB is happy to have been able to offer ZSE Group the opportunity to diversify funding sources and finance high priority investments on terms not generally available in the market.”

Markus Kaune, CEO at ZSE Group, said: “The loan from the EIB is a major step forward in enabling the investments required to modernize and expand our electricity distribution network. We are proud to welcome the EIB as a strong strategic partner supporting our ambition to accelerate Slovakia’s energy transition. In the coming three years, we will be able to continue our high investment level, which has almost doubled since 2022. We are committed to building a smarter, more resilient and future-ready grid that meets the evolving needs of customers and the energy system, and especially the progressing electrification, e.g. in heating and transport.”

A large share of the investments under this EIB loan will take place in Slovakia’s cohesion regions, namely in western and eastern parts of the country, supporting faster and balanced social and territorial development. The ZSE investments under this loan will also contribute to the implementation of Slovakia’s National Energy and Climate Plan, as well as EU energy and climate objectives including the REPowerEU plan, the European Green Deal and the EU Grid Action Plan, and the European Union’s long-term goal of climate neutrality.

Secure, modern energy supply networks for households and businesses in the EU

EIB and ZSE partnership will result in improved reliability and quality of electricity supply, support the integration of additional low-carbon generation and e‑mobility, and help accommodate growing electricity demand from Slovak households and businesses.

By strengthening the distribution grid, the project will enhance security of supply and resilience, including to climate-related extreme weather events, enable a higher share of renewables and more efficient use of low-carbon electricity, and improve the energy services available to businesses. This is vital for productivity, innovation and global competitiveness in a decarbonising European economy.

As the climate bank, the EIB Group is a key financier of Europe’s energy transition. The EIB Group is well on track to deliver on its headline goal to support at least €1 trillion in green investment this decade, having already mobilised over €560 billion of green investment between 2021 and 2024. The share of green investment increased to almost 60% of our total financing in 2024 and we are on track for another record this year.  

Last year, we provided record financing for energy with €31bn investment – doubling since 2021.  Investment in Renewables alone, €12bn in 2024, tripled since 2020. Grids and storage rose to record €8.5bn double from 2023, Energy efficiency €7.5 bn. This strong and sustained support helps to reinforce energy security, integrate more renewable energy and reduce emissions across the EU.

Background information 

European Investment Bank:

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, we finance 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.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. 

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

Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

ZSE Group:

The ZSE Group is a leader in the supply and distribution of electricity in Slovakia, providing services to nearly 2 million customers. Electricity distribution services are provided in the western and eastern Slovakia regions (by the companies Západoslovenská distribučná and Východoslovenská distribučná), while electricity and gas supply services are provided throughout Slovakia (by the E.SK company).

The company offers its customers solutions in the field of so-called new energy, based on the use of renewable energy sources and increasing energy efficiency. It also operates a charging network for electric vehicles under the ZSE Drive brand. The ZSE Group is one of the leaders in Slovakia in matters of responsible business and ESG implementation.