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Italy’s IREN S.p.A. and CEB sign loan to increase the use of green energy in Turin

25 March 2022

PARIS/REGGIO EMILIA – The Council of Europe Development Bank (CEB) and Italy’s multi-utility company IREN S.p.A.  have signed a € 80 million loan to boost the use of green energy in the metropolitan area of Turin in Italy.

The CEB loan will support the implementation of IREN’s district heating investment plan for 2021-2025, which aims to improve the distribution of thermal energy to residential and public buildings in Turin. The plan envisages increase in the volume of district heating by approximately 13 million cubic meters, construction of 156 kilometres of new network, and renovation of approximately 13 kilometres of the existing network. The CEB loan will cover approximately 40% of the total financial needs envisaged by this plan.

“We are pleased to continue a very fruitful cooperation with IREN in the sector of environmental sustainability,” said CEB Governor Carlo Monticelli. “Our common goal is to provide citizens with high-quality services that are efficient, reliable and sustainable.” 

IREN operates mainly in the north-western part of Italy, in the regions of Emilia Romagna, Liguria and Piedmont. It will on-lend the CEB’s financial resources to its subsidiary in charge of district heating activities.

Sub-projects to be funded by the CEB loan include the upgrading and extension of the Turin district heating network and development of a new heating storage plant for a total cost  of approximately € 198 million.

“This loan will significantly strengthen IREN’s financial structure with respect to sustainable finance, which today represents approximately 64% of its total debt,” explained IREN CEO Gianni Vittorio Armani. “These investments intended to extend the district heating network will maximise the use of the heat produced in cogeneration, thereby reducing CO2 emission, increasing energy savings, and improving the air quality in the Turin metropolitan area.” 

It is expected that more than 100,000 residents in the Turin metropolitan area will directly benefit from the project.

This project builds on the existing cooperation between the CEB and IREN in the sector of environmental sustainability. In January 2020, the CEB approved a € 80 million loan to IREN for improvements to the water and wastewater infrastructure benefitting more than one million residents in the provinces of Genoa and Parma.

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IREN S.p.A. is one of the four main Borsa Italiana listed multi-utilities operating in Italy, mainly in the regions of Emilia Romagna, Liguria and Piedmont. It operates in the sectors of electricity, thermal energy for district heating and gas, and in the management of integrated water services, environmental services and technological services.

Italy

Italy is one of the eight Council of Europe member countries that established the CEB in 1956 and one of the Bank’s largest shareholders, holding 16,7% of the share capital. To date, the Bank has provided the country with more than € 6 billion in financing for a wide range of social investments, from education and various other municipal infrastructure improvements, including earthquake and flood protection, to support for MSMEs. In addition, Italy is a key contributor of grant resources to the Bank’s trust funds. For more information, see here.

Set up in 1956, the CEB (Council of Europe Development Bank) has 42 member states. Twenty-two Central, Eastern and South Eastern European countries, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its rating (Aa1 with Moody's, outlook stable, AAA with Standard & Poor's, outlook stable, AA+ with Fitch Ratings, outlook positive and AAA* with Scope Ratings, outlook stable). It thus grants loans to its member states, and to financial institutions and local authorities in its member states for the financing of projects in the social sector, in accordance with its Articles of Agreement.
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