EIB Lends €200 Million to A2A for Milan's Electricity Distribution Grid

The European Investment Bank (EIB) has granted a €200 million loan to A2A, one of Italy's leading multi-utility groups, to finance the modernisation and reinforcement of electricity distribution grids in the province of Milan, in Lombardy. The operation aims to improve infrastructure resilience and increase available capacity in an area characterised by high load density and growing electrification demand, amid the accelerating global transformation of electricity systems — India, for instance, has set a target of 500 GW of non-fossil electricity capacity by 2030. The project is managed by Duereti, the group's subsidiary responsible for electricity distribution in several municipalities across the provinces of Milan and Brescia.

590 km of Grid Renewed and 800 Substations Modernised

The programme covers the renewal of approximately 450 km of medium-voltage grid and approximately 140 km of low-voltage grid using new generation cables, along with network rationalisation works. In urban areas most exposed to extreme weather events, the progressive underground installation of certain infrastructure sections is set to begin. This measure aims to improve the grid's resilience to climate-related hazards.

The project also includes the reconstruction and modernisation of almost 800 secondary substations, the installation of transformers to reduce energy losses, and new generation switching and protection equipment. According to A2A, these measures will increase available transformation capacity, improve load distribution and ensure faster maintenance operations. The agreement also prepares the grid to absorb expected growth in electric mobility, end-use electrification and distributed generation.

Estimated CO₂ Reduction of 6.9 Kilotonnes per Year and a €23 Billion Strategic Plan

According to estimates, the modernisation of the distribution system will lead to an annual emissions reduction of approximately 6.9 kilotonnes of CO₂-equivalent, equivalent to the CO₂ absorbed each year by approximately 50,000 trees. The initiative is part of A2A's 2035 Strategic Plan, which allocates €23 billion in investment to the twin pillars of the green transition and the circular economy. The EIB also notes that the grid reinforcement accounts for the expected growth of data centres in the region.

Gelsomina Vigliotti, EIB Vice-President, stated that the agreement «is fully aligned with the EIB mandate to support modern and resilient energy infrastructure in line with European climate objectives». Luca Moroni, CFO of A2A Group, indicated that the financing would allow the group to «accelerate high-impact investments in a strategic area such as the province of Milan», improving operational efficiency and service quality. He described the agreement as «a concrete example of how financial discipline and value creation can go hand in hand».