Slovakia gets more EIB support for power-grid upgrades with second €50 million tranche to ZSE Group

This article is published in association with European Investment Bank.

• EIB lends Slovak energy utility Group ZSE further €50 million to upgrade country’s electricity- distribution network, raising bank’s total financing package to €400 million
• EIB support covers part of ZSE Group programme to renovate and expand overhead lines and underground cables and to deploy smart grid technologies.
• Project will advance EU goals by opening the way for more renewable energy and promoting sustainable economic growth.

The European Investment Bank (EIB) is expanding its financing for upgrades of Slovakia’s electricity-distribution networks by lending a further €50 million to the Západoslovenská energetika (ZSE) Group. This second tranche comes six months after the EIB made its largest corporate loan in Slovakia with €350 million in financing to ZSE. 

The project includes the deployment of smart technologies to prepare the grid for automation. The overall aim is to ensure that larger amounts of renewable energy such as solar power can enter the electricity system over the coming years.

“Slovakia will need stronger and smarter networks to meet rising electricity demand, connect more renewable energy and support decarbonisation,” said EIB Vice-President Marek Mora. “We are stepping up support for ZSE to propel investments that will benefit households, companies and regions across the country.”

The operation will advance European Union initiatives such as the “European Green Deal” to promote climate action, reduce reliance on fossil fuels and increase energy independence. Because the EIB financing will extend to western and eastern Slovakia, it will also support an EU goal to promote economic growth in underdeveloped areas known as “cohesion regions”.

ZSE Group, though its subsidiaries Západoslovenská distribučná and Východoslovenská distribučná, is Slovakia’s largest electricity distribution system operator, providing electricity distribution services to nearly 2 million customers.

“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. 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 meters technologies, as well as grid automation.” said Markus Kaune, CEO at ZSE Group.

The total loan of EUR 400m highlights the key role played by the EIB Group, which includes the European Investment Fund (EIF), in financing Europe’s energy transition.

In 2025, the EIB Group provided a record €33 billion in financing for Europe’s energy security – nearly double the sum in 2022. The EIB Group last year also provided a record €11.6 billion for electricity networks and storage, backing almost half of Europe’s total investment in grids.

Background information

The EIBGroup 

The European Investment Bank (ElB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion of new financing and advisory services for over 870 high-impact projects in eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investment union. Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.

ZSEGroup
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.