EnBW has secured financing for one of the key infrastructure projects of the energy transition. A loan of 500 million euros will support the further expansion of the SuedLink project. The financing is being provided by an international banking consortium and is guaranteed by the Danish export credit agency EIFO. Arup supported the transaction as an Independent Environmental and Social Consultant (IESC) and, on behalf of ENBW, advised the financing banks – including EIFO – on environmental and social aspects in the run-up to this crucial milestone.

As part of a comprehensive Environmental and Social Due Diligence (ESDD) process, a multidisciplinary team of specialists from across Europe and the UK reviewed  the project documentation, permits and management systems, and assessed these against international standards, including the IFC Performance Standards and the requirements of the EU Taxonomy.

A key focus of the ESDD was the assessment of the Project’s environmental and social risks and impacts, including those related to biodiversity, land use, stakeholder engagement, and climate and human rights aspects. Furthermore, Arup analysed the project sponsor’s organisational and procedural capabilities for implementing environmental and social standards throughout the construction and operational phases. The review was completed within a compressed timeframe to support the financing process.

A man pointing at a screen.

SuedLink connects windy regions in northern Germany with the major industrial and consumer centres in the south.

With a length of around 700 kilometres, SuedLink is one of Germany’s most important electricity interconnectors. As a high-voltage direct current (HVDC) transmission line, it transports renewable energy from northern Germany to consumption centres in Bavaria and Baden-Württemberg. The project is being implemented jointly by the transmission system operators TransnetBW and TenneT Germany and is scheduled for completion by 2028.

Arup will continue to support the project beyond financial close and assist with the implementation of the agreed environmental and social requirements. This includes providing ongoing advice to EnBW, TransnetBW and the financiers on implementing the measures defined in the Environmental and Social Action Plan (ESAP), as well as regularly reviewing progress. During the monitoring phase, Arup will review the environmental and social reports provided by the project team, verify compliance with the requirements set out in the financing agreements and international standards, and provide targeted recommendations f to support continuous improvement.

Images: TransnetBW / Benjamin Stollenberg Fotografie (top image), TransnetBW / Shot Fotografie (middle)

Financing major projects such as SuedLink requires not only strong capital partners, but also robust technical and commercial due diligence. With Arup’s support, we have developed a financing solution that combines long-term financial security with the requirements of one of Europe’s most significant grid expansion projects.

Marcel Münch

Senior Vice President for Finance, M&A and Investor Relations at EnBW