The European Investment Bank (EIB) has granted a €200 million loan to A2A, one of Italy’s leading multi-utility companies, to modernise and expand electricity distribution grids in the province of Milan. The project aligns with national and European decarbonisation targets and aims to reinforce grid resilience, increase capacity, and meet rising electricity demand driven by electrification, electric mobility, and distributed generation. Key works include the renewal of approximately 450 km of medium-voltage lines and 140 km of low-voltage lines, as well as the modernisation of nearly 800 secondary substations.
The investment will introduce new generation cables, transformers to reduce energy losses, and advanced switching and protection equipment that enable greater automation and flexible network management. Sections of the grid in urban areas exposed to extreme weather will progressively be moved underground to improve resilience. Together, these measures will enhance load distribution, increase transformation capacity, and allow faster maintenance operations, preparing Milan’s electricity infrastructure for future energy demands.
EIB Vice-President Gelsomina Vigliotti highlighted that the project supports modern, resilient energy infrastructure while facilitating the integration of renewable energy and advancing Europe’s energy transition. Luca Moroni, CFO of A2A Group, emphasised that the financing will accelerate strategic investments, improve operational efficiency, and deliver tangible benefits for local communities, businesses, and citizens.
The modernisation is expected to reduce annual CO₂ emissions by around 6.9 kilotonnes, equivalent to the absorption capacity of approximately 50,000 trees. This project forms part of A2A Group’s 2035 Strategic Plan, which allocates €23 billion toward the green transition and circular economy, demonstrating the company’s commitment to decarbonisation, infrastructure flexibility, and sustainable energy development.
A2A, listed on the Milan stock exchange and employing about 15,000 people, is a major operator in Italy’s energy and circular economy sectors. It manages electricity and gas distribution, district heating, waste management, smart city services, and more. The EIB, the EU’s financing arm owned by 27 Member States, provides long-term loans while catalysing private investment for high-risk projects, with its subsidiary, the European Investment Fund, focusing on guarantees and equity for startups and SMEs. Together, the EIB and A2A aim to modernise Milan’s electricity network and strengthen the city’s sustainable energy infrastructure.
