EIB Approves PLN 2 Billion for ENEA’s Electricity Grid Modernization in Poland, Boosting Sustainability and Energy Reliability

EIB Approves PLN 2 Billion for ENEA’s Electricity Grid Modernization in Poland, Boosting Sustainability and Energy Reliability

(IN BRIEF) The European Investment Bank (EIB) has given its approval for a second loan tranche of PLN 1 billion to ENEA to support the modernization and renovation of the electricity distribution network in western Poland. This follows the first tranche of PLN 1 billion signed in December 2023, bringing the total investment financing for ENEA to PLN 2 billion. The project aims to enhance the reliability and security of Poland’s electricity supply, facilitate the integration of renewable energy sources, and meet the rising demand due to population growth and increased electrification of the economy. The financing will benefit ENEA Operator Sp. z o.o., a subsidiary responsible for operating the distribution network, and aligns with the REPowerEU objective of reducing dependence on fossil fuel imports while promoting sustainability and economic development in the region.

(PRESS RELEASE) LUXEMBOURG, 26-Jan-2024 — /EuropaWire/ — The European Investment Bank (EIB) has now approved financing of PLN 2 billion to renovate and modernise the electricity distribution network of ENEA S.A. in western Poland. The first tranche for PLN 1 billion was signed in December 2023, and the second for an equal amount was signed.

The financed investments are expected to boost the reliability and security of Poland’s electricity supply, facilitate the integration of renewable energy sources, and address the growing demand due to population growth and the progressive electrification of the economy. The direct beneficiary of the financing will be ENEA Operator Sp. z o.o., a company in the ENEA Group responsible for operating the distribution network.

EIB Vice-President Teresa Czerwińska remarked, “The EIB remains steadfast in its commitment to advancing the REPowerEU objective of decreasing reliance on energy imports and steering the European energy sector towards sustainability. The financial support extended to ENEA is indispensable for the transformation and decarbonisation of the Polish energy landscape, exerting a substantial influence on economic development.”

The project encompasses work on a large body of mostly medium- and low-voltage electricity distribution infrastructure, including installing new or refurbished overhead lines and underground cables, connecting new customers and renewable energy sources, and adding smart meters.

All the investments will go to cohesion priority regions in western Poland in the four provinces of Wielkopolskie, Zachodniopomorskie, Lubuskie and Kujawsko-Pomorskie. The EIB prioritises supporting investment in EU regions where per-capita income is relatively low, as this creates jobs, helps local economies develop sustainably and promotes the convergence of living standards.

Background information

About the EIB

The European Investment Bank finances sound investment to pursue EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.

The EIB Group, which also includes the European Investment Fund, signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. The group is on track to deliver on its commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030, as pledged in its Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects that contribute directly to climate change mitigation, adaptation and a healthier environment.

Approximately half of EIB financing within the EU goes to cohesion regions, which have lower per-capita income. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

The EIB and energy security

Over the past decade, the EIB Group has channelled more than €100 billion into the EU energy sector. These timely investments are now helping Europe weather the crisis triggered by the abrupt cut in Russian gas supplies. In 2022, the EIB signed financial support totalling more than €17 billion for projects in energy efficiency, renewables, electricity and storage inside the European Union, strengthening the resilience of the European economy.

In July 2023, the EIB’s Board of Directors decided to raise the group’s clean energy financing volumes to unprecedented levels in support of the REPowerEU objective of phasing out Europe’s dependency on Russian fossil fuel imports by fast-forwarding the clean transition. An additional €45 billion will be invested over the next five years, on top of the EIB’s already robust support for the EU energy sector. It is estimated that the dedicated REPowerEU package will mobilise €150 billion in additional investment by 2027, making a substantial contribution to Europe’s energy independence and the EIB Group’s target of mobilising €1 trillion in climate financing this decade.

Media Contact:

Katarzyna Karpiuk
k.karpiuk@ext.eib.org
+352 4379-70611

Press Office

press@eib.org
+352 4379 – 21000

SOURCE: European Investment Bank