In a significant move to support Poland’s energy transition, the European Investment Bank (EIB) and ORLEN Group, Poland’s largest energy conglomerate, have signed a PLN 900 million loan agreement to finance the expansion and upgrade of Poland’s power distribution infrastructure, according to the press release. This latest agreement, which brings the total EIB funding to PLN 1.8 billion this year, will help Energa, the power system operator majority-owned by ORLEN, strengthen its grid and expand its capacity to integrate more renewable energy sources.
EIB Vice-President Teresa Czerwińska emphasized the importance of the investment, saying: “The EIB is doubling its financing to ORLEN Group in 2024 because improving Poland’s power distribution network is a crucial part of the country’s energy transition. The funding will support grid expansion, RES (Renewable Energy Sources) connection capacity, and grid resilience improvements to ensure reliable energy delivery, even during extreme weather events intensified by climate change.”
Under this agreement, Energa plans to add 830 kilometers of power lines, along with 320 kilometers of new connections, bringing electricity to approximately 25,000 new customers. The investment will also fund the installation of 170,000 smart meters and 1,000 electric vehicle charging stations, along with enhancing the grid’s capacity to connect 1.4 GW of renewable energy. This project is set to provide clean energy to 900,000 new households across Poland.
Magdalena Bartoś, CFO and Vice President of the ORLEN Management Board, highlighted the importance of affordable financing for their energy transition strategy: “The partnership with the EIB provides us with access to cost-effective financing on favorable terms, which is crucial for the success of our growth programs and creates substantial value for our shareholders.”
The agreement is part of REPowerEU, the European Union’s initiative aimed at enhancing the strategic autonomy of the bloc by diversifying energy sources and accelerating the green transition. The EIB has committed to providing €45 billion by 2027 to help meet REPowerEU’s goals. In Poland, EIB funding for REPowerEU initiatives reached €1.78 billion in 2023, marking an 80% increase from the previous year.
Over the last five years, ORLEN Group has allocated over PLN 8.3 billion towards investments in electricity distribution, with Energa currently having a renewable energy capacity of approximately 9.2 GW. In 2024, Energa successfully connected nearly 21,500 new renewable energy installations, including small consumer-owned setups, contributing a total capacity of 801 MW.
This strategic collaboration between EIB and ORLEN Group marks a major step forward in Poland’s energy transition efforts, aligning with the EU’s overarching goals of sustainable development and green energy advancement.
