EIB backs Polish energy transition with a major loan
Brussels (Brussels Morning Newspaper) – The European Investment Bank (EIB) and ORLEN Group, Poland’s biggest energy company, marked a PLN 900 million loan arrangement for schemes supporting energy transition.
As reported by EIB, the funds will be employed to invest in supporting and expanding the power grid of Energa, a distribution system operator majority held by ORLEN. This new EIB support will help update electricity distribution in northern and central Poland, as well as permit to connection of more renewable energy sources (RES). The loan comes as the first under a total of PLN 3.5 billion in financing backed by the EIB to boost Energa’s network in 2024-25.
What benefits will the Orlen-EIB partnership bring to Poland?
“This new transaction reaffirms the EIB’s function as a trusted partner of multidimensional energy transition in Poland,” stated EIB Vice-President Teresa Czerwińska. “As the climate bank of the European Union, the EIB funds strategic investments in energy efficiency, renewable energy sources, as well as stability and security of supply. We expect this seventh EIB financing agreement with ORLEN to further these objectives.”
EIB allocation will back Energa’s investment plan designed to enhance the security and efficiency of the power supply. This entails adding new customers and raising RES connection capacity by about 4.8 GW, as well as updating the distribution network, upgrading distribution assets, and funding smart grid components, including smart metering.
“Reaching carbon neutrality requires not only a transformation in generation sources but also significant gains in operational efficiency. The rollout of distributed generation, demand-supply balancing, and energy storage represent crucial challenges for Poland’s economy. Effective energy management can provide a substantial competitive edge for both the Polish and broader European economies. Hence, large-scale investment programmes to upgrade our network are vital. The financing provided by the European Investment Bank will allow us to address these priorities while strengthening Poland’s energy security,” stated Ireneusz Fąfara, President of the Management Board and CEO of ORLEN.
How does this funding align with REPowerEU objectives?
The deal between the EIB and ORLEN Group was finalised under REPowerEU, an EU programme that sought to increase the strategic autonomy of the bloc by diversifying the energy supply and revving the green transition. By 2027, the EIB will deliver €45 billion in loans and equity financing to extend REPowerEU objectives.
