Sunita Somvanshi
The European Investment Bank (EIB) and French power company EDF just signed a major deal worth €500 million to improve France’s electricity network. This money, announced on September 5, is the second half of a larger €1 billion program to strengthen the power grid run by Enedis across most of France. Why does this matter? The existing power lines weren’t built to handle today’s challenges. More homes and businesses are installing solar panels, and wind farms are popping up across the countryside. The current grid struggles to connect all these new power sources efficiently.
The money will fund two main improvements. First, it will help connect 7 gigawatts of new renewable energy to the grid – enough to power millions of homes. Second, workers will bury or replace over 2,500 kilometers of power lines, making them less likely to fail during storms and extreme weather.
France’s electricity network is changing rapidly. Nearly 1.2 million French homes and businesses now generate their own electricity from renewable sources, with two-thirds both using and feeding power back into the grid. Almost 90% of all wind and solar power in France flows through Enedis’s network.
“In 2024, the EIB provided 40% of all investments for energy networks across Europe,” said EIB Vice-President Ambroise Fayolle. “We play a major role in helping Europe cut carbon emissions and secure its energy supply.”
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The funding fits into Europe’s broader plans to slash greenhouse gas emissions by 55% by 2030 and reach net-zero by 2050. It also supports REPowerEU, the plan to make Europe less dependent on Russian energy by investing in local, renewable power sources.
This upgrade comes at a crucial time. Experts predict electricity will make up 55% of France’s total energy use by 2050, up from about a third today. This means more electric cars, heat pumps, and other devices putting new demands on the grid.
The loan represents about 40% of what Enedis plans to spend on these specific improvements in 2025. The company’s overall yearly spending now exceeds €5 billion as it races to modernize the grid for a future with more renewable energy and electric vehicles.
The EIB is increasingly focused on funding grid projects, committing €8.5 billion to similar work across Europe in 2024 alone. This reflects growing recognition that modern, flexible power grids are just as important as new clean energy sources in the fight against climate change.
For everyday French citizens, these upgrades should eventually mean fewer power outages during storms, faster connections for those installing solar panels, and a more reliable grid that can handle growing electricity needs as more people switch from gas to electric appliances.
