EIB Finalizes €405 Million Loan to Power Poland’s Energy Transition with Major Grid Upgrades

EIB Finalizes €405 Million Loan to Power Poland’s Energy Transition with Major Grid Upgrades

(IN BRIEF) The European Investment Bank has signed a loan agreement of 1.7 billion Polish zlotys (€405 million) with Orlen, which will finance major upgrades to Poland’s electricity network through its subsidiary, Energa Operator. This installment is the final tranche of a total 3.5-billion-zloty package aimed at overhauling the power distribution grid in northern and central Poland. The funding will enable Energa Operator to revamp over 4,600 kilometers of its existing grid and construct 2,300 kilometers of new power lines, thereby connecting about 25,000 additional customers and modernizing its metering systems. EIB Vice-President Teresa Czerwinska emphasized that this investment is a strategic move to secure sustainable growth and energy security, aligning with EU clean power and climate goals. Meanwhile, Orlen’s CFO, Magdalena Bartoś, highlighted that the financing is a significant vote of confidence in their expansion strategy, which will drive further economic benefits and solidify their role in Poland’s green transition. In the long term, the EIB loan will support plans to expand the national grid by 11,000 kilometers of new lines, 7,000 kilometers of underground cables, and upgrade 10,000 kilometers of current infrastructure by 2035, ultimately connecting 350,000 new customers and integrating 9 GW of renewable energy.

(PRESS RELEASE) LUXEMBOURG, 20-Mar-2025 — /EuropaWire/ — The European Investment Bank (EIB) has finalized a groundbreaking loan agreement of 1.7 billion Polish zlotys (€405 million) with Orlen, earmarked for its electricity supplier, Energa Operator, to fund an extensive investment program aimed at upgrading and expanding Poland’s power network. This financing represents the final, third tranche of a total 3.5-billion-zloty package dedicated to modernizing the country’s power distribution grid across northern and central Poland.

Under this latest tranche, Energa Operator, a subsidiary of Orlen, is set to revitalize more than 4,600 kilometers of its current grid while constructing an additional 2,300 kilometers of new power lines to serve approximately 25,000 new customers. The investment also includes a comprehensive modernization of the network’s metering systems, all designed to enhance reliability, sustainability, and customer service across Poland’s electricity infrastructure.

EIB Vice-President Teresa Czerwinska remarked, “Our support to Orlen is a strategic investment in the sustainable and long-term growth of the Polish economy. This initiative underscores our unwavering commitment to a fair green transition, modern energy infrastructure, and bolstered energy security for both Poland and the European Union.” This operation not only contributes to reducing energy import dependencies but also aligns with EU priorities under the RePowerEU initiative—promoting clean power sources such as wind and solar and advancing the shift toward a net-zero-emissions power grid.

Highlighting the significance of the project, Magdalena Bartoś, Vice President of the Management Board and Chief Financial Officer at Orlen, stated, “This record-high financing from the EIB is a robust endorsement of our growth strategy. Our well-structured plan will create value for our shareholders and drive broader economic benefits. The funds will be allocated to critical upgrades in our electricity distribution network, including the construction of new power lines and the connection of new customers—particularly prosumers generating their own renewable energy. These projects, executed by Energa Operator, are integral to strengthening our leadership in Poland’s energy transition.”

The EIB loan will also support Energa Operator’s long-term vision to expand Poland’s national grid by adding 11,000 kilometers of new power lines and 7,000 kilometers of underground cables, while upgrading nearly 10,000 kilometers of existing infrastructure by 2035. These ambitious investments are expected to connect 350,000 new customers, integrate 9 GW of renewable energy sources, increase the grid’s installed capacity by over 16%, and incorporate energy storage solutions to further stabilize the power system.

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, high-impact investments outside the European Union, and the capital markets union. The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

In 2024, the EIB Group financing in Poland grew to €5.7 billion. This bolstered sustainable development of cities and regions, energy transition and included the group’s largest security defence project last year.

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ORLEN Group is an integrated multi-utility energy company listed in the prestigious global Fortune Global 500. It was the first company in the region to declare achieving total emission neutrality in 2050. Thanks to the recent acquisitions and mergers, it became one of the 150 largest companies in the world. The company operates on 10 home markets: Poland, Czech Republic, Germany, Lithuania, Slovakia, Hungary, Austria, Canada, Norway and Pakistan. Retail sales are carried out using the largest network of 3,500 fuel stations in the region. The ORLEN Group’s offer reaches over 100 countries on 6 continents.

By the end of this decade, ORLEN will have invested over PLN 320 billion to implement strategic projects, of which approximately 40% will be allocated to green investments, including wind energy at sea and on land, photovoltaics, biogas and biomethane, biofuels, electromobility, green hydrogen and synthetic fuels.

Media contact:

Gabriela Baczyńska
g.baczynska@eib.org
+352 4379-83852

Press Office
press@eib.org
+352 43791

SOURCE: European Investment Bank