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, according to a press release from the EIB. This second tranche comes six months after the EIB made its largest corporate loan in Slovakia with €350 million in financing to ZSE. The additional loan raises the bank’s total financing package to €400 million. The support covers part of ZSE Group’s programme to renovate and expand overhead lines and underground cables. It will also enable the deployment of smart grid technologies across the country.
ZSE Group, through its subsidiaries Západoslovenská distribučná and Východoslovenská distribučná, is Slovakia’s largest electricity distribution system operator. It provides electricity distribution services to nearly 2 million customers. The financing extends to both western and eastern Slovakia. 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.
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.” The project will advance EU goals by opening the way for more renewable energy and promoting sustainable economic growth. It is expected to benefit households, companies and regions across the country. The financing highlights the EIB’s role in supporting Europe’s energy transition.
“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.”
Markus Kaune, CEO at ZSE Group, added that the company is committed to building a smarter, more resilient and future-ready grid. He noted that the EIB loan will support ZSE Group in upgrading high-, medium- and low-voltage overhead lines and underground cables. It will also fund the modernisation of transformers and substations, the rollout of smart meters technologies, and grid automation.
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 also provided a record €11.6 billion for electricity networks and storage last year, backing almost half of Europe’s total investment in grids. The total loan of €400 million to ZSE Group underscores the key role played by the EIB Group, which includes the European Investment Fund (EIF), in financing Europe’s energy transition. ZSE Group offers customers solutions based on renewable energy sources and increasing energy efficiency. It also operates a charging network for electric vehicles under the ZSE Drive brand.