French multinational electric utility company EDF and the European Investment Bank on Friday signed a €500 million ($539 million) financing agreement to help Enedis boost resilience against climate change and expand connections to renewable energy sources.

Part of €1 Billion Financing Program

The loan marks the second tranche of a €1 billion package agreed by EDF and the European Investment Bank to meet Enedis’ investment needs for 2024-2025.

The first €500 million loan was signed in 2024, with the full financing aimed at adapting France’s power grid to support the energy transition.

Enedis, which manages 95 percent of the French electricity grid, plans to use the funds to reinforce its network against extreme weather and connect decentralized renewable producers.

The 2025 phase will partly finance the connection of 7 gigawatts of new renewable capacity and the burying or replacement of 2,500 kilometers of distribution lines.

Supporting EU Energy Goals

The financing aligns with the European Union’s Green Deal and the REPowerEU program, which seeks to cut dependence on Russian energy imports and accelerate the deployment of renewables and energy efficiency.

The bloc aims to reduce net greenhouse gas emissions by 55 percent from 1990 levels by 2030 and reach carbon neutrality by 2050.

“In 2024, 40 percent of investments in Europe to finance energy networks, interconnections and storage were mobilized by the European Investment Bank,” said Vice President Ambroise Fayolle, in a statement. “The financing for Enedis is fully aligned with this dynamic.”

EDF Sees Milestone in Transition

EDF Group Chairman and Chief Executive Bernard Fontana called the loan a vital milestone in supporting Enedis’ public service mission.

“It enables Enedis to continue its mission by helping to strengthen the resilience of the network to the impacts of climate change and ensuring the connection of renewable energies,” Fontana said.

EDF and the European Investment Bank have been long-time partners in financing energy transition investments, particularly in power distribution infrastructure considered critical for Europe’s decarbonization and energy security.