The European Investment Bank (EIB) is lending EUR 250 million to Russian company Enel OGK-5 to finance the upgrading of a gas fired power plant located in Nevinnomyssk, South Russia.
The grant is the first EIB loan in support of the Russian power generation sector, and also the first EIB project in Southern Russia. Enel OGK-5 is majority-owned by Italian power utility Enel.
The project concerns the construction of a modern, efficient combined cycle gas turbine (CCGT) unit with a capacity of 410 MW to replace / put in cold reserve old power plant units, as well as the rehabilitation of existing generating capacity.
According to the company this will lead to greater energy efficiency as well as a reduction in CO2 emissions per unit of electricity produced.
Through its loan to Enel’s Russian operations, EIB therefore supports European Foreign Direct Investment (FDI) in Russia, while at the same time contributing to European policies in the important areas of energy efficiency and climate change.
By helping to enhance access to modern sources of energy in Russia, EIB’s loan promotes the operational safety of energy infrastructure and contributes to energy security and economic development. The project is co-financed by EBRD.
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