EIB Launches PLN 3.5 Billion Initiative with ORLEN to Boost Poland’s Renewable Energy Grid and Strengthen Energy Security

EIB Launches PLN 3.5 Billion Initiative with ORLEN to Boost Poland’s Renewable Energy Grid and Strengthen Energy Security

(IN BRIEF) The European Investment Bank (EIB) has provided a PLN 900 million loan to ORLEN Group for upgrades to Energa’s power grid, marking the first part of a PLN 3.5 billion funding initiative aimed at improving Poland’s energy infrastructure. Supported by the EU’s REPowerEU program, the financing will help Energa expand its grid to connect more renewable energy sources, bolster network reliability, and support the country’s move towards carbon neutrality. ORLEN’s leaders emphasized that this investment is crucial for Poland’s energy security and competitive edge, aligning with national and EU green transition goals.

(PRESS RELEASE) LUXEMBOURG, 12-Nov-2024 — /EuropaWire/ — The European Investment Bank (EIB) has extended a PLN 900 million loan to ORLEN Group, Poland’s leading energy corporation, as part of a larger financing plan to upgrade and expand Energa’s power distribution network in Poland. This loan marks the first installment of a broader PLN 3.5 billion funding package from the EIB, aimed at strengthening Energa’s grid infrastructure and supporting Poland’s energy transition efforts, particularly in the northern and central regions of the country. This financing, backed by the REPowerEU initiative, is expected to facilitate the integration of additional renewable energy sources (RES) into the grid, advancing Poland’s move toward a cleaner energy landscape.

EIB Vice-President Teresa Czerwińska expressed confidence in this partnership, emphasizing the EIB’s commitment as the EU’s “climate bank” to fostering sustainable and resilient energy systems in Poland. “This new transaction reaffirms the EIB’s role as a trusted partner of multidimensional energy transition in Poland,” Czerwińska noted, underlining the EIB’s objective to promote energy efficiency, renewable integration, and stability in power supply through strategic investments. This latest agreement marks the seventh collaboration between EIB and ORLEN, further cementing their joint efforts in advancing Poland’s energy infrastructure.

The financing will support Energa’s robust investment program, focused on expanding grid capacity to accommodate approximately 4.8 GW of renewable energy connections and modernizing its distribution network. This effort includes updating distribution assets and enhancing grid intelligence through smart meters and other innovative components. Energa’s initiatives are designed to improve operational efficiency, enhance energy management, and ultimately contribute to the country’s goal of carbon neutrality.

ORLEN Group’s President and CEO, Ireneusz Fąfara, highlighted the strategic importance of these investments for Poland’s energy future. “Achieving carbon neutrality requires not only a shift in generation sources but also significant improvements in operational efficiency,” Fąfara stated. He emphasized that initiatives like distributed generation, demand balancing, and energy storage are essential for enhancing Poland’s competitive edge in both local and European markets. With the EIB’s support, ORLEN aims to address these critical challenges while fortifying the nation’s energy security.

This agreement with ORLEN aligns with the EU’s REPowerEU program, which aims to accelerate the green transition and bolster Europe’s energy independence by diversifying supply sources. Under this program, the EIB has committed to providing €45 billion in financing across Europe by 2027, with a focus on renewable energy, energy efficiency, and supply chain diversification.

EIB financing in Poland under REPowerEU saw a substantial boost last year, with €1.78 billion allocated—an 80% increase from 2022. The EIB’s ongoing investments have supported projects ranging from rail power infrastructure modernization to future agreements expected in the energy sector.

This EIB loan to ORLEN Group will be disbursed in installments over the next three years, with repayment spread across a maximum term of 15 years. Magdalena Bartoś, ORLEN’s Vice President of the Management Board for Finance, emphasized the significance of securing long-term financing at competitive rates. “The financing secured from the European Investment Bank—a key partner in Europe’s most impactful transition projects—is of particular importance to us,” Bartoś commented. She noted that this financial support will allow ORLEN to carry out its planned investments while reinforcing the Group’s financial stability.

In recent years, ORLEN has allocated over PLN 8.3 billion toward expanding Energa’s electricity distribution network, currently facilitating about 9.2 GW of renewable energy capacity. In 2024 alone, Energa connected nearly 21,500 new renewable installations, with a total capacity of 801 MW, underscoring ORLEN Group’s commitment to scaling up green energy infrastructure in Poland.

Background information

The EIB is the EU institution providing long-term financing for sound projects that pursue EU priorities. The EIB’s shareholders are the Member States. Its involvement increases economic competitiveness, spurs innovation, promotes sustainable development, enhances social and territorial cohesion, and supports a swift and fair transition to climate neutrality.

In 2023, the EIB Group granted a total of €88 billion in new financing to more than 900 projects, of which €49 billion was earmarked for green investments. These funds are expected to support total investment of €320 billion, help 400 000 companies and sustain 5.4 million jobs. The EIB Group is on track to meet its goal of mobilising €1 trillion of climate investment by the end of this decade.

More than half of the €5.1 billion granted to Poland by the EIB Group in 2023 went to climate-friendly projects.

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 invest 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.

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Gabriela Baczyńska
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SOURCE: European Investment Bank