Electricity grid to get further upgrades with EIB loan payment of over €400 million to Orlen Group
EIB set for loan of 1.7 billion Polish zlotys (€405 million) for Orlen to finance the investment programme of its electricity supplier Energa Operator and improve and expand Poland’s electricity network. Loan marks third and final tranche of 3.5-billion-zloty EIB loan to Orlen for upgrades to Poland’s power infrastructure.
With the latest EIB loan tranche, Orlen subsidiary Energa Operator will upgrade over 4,600 kilometres of existing grid infrastructure, and build a further 2,300 km of power lines in Poland to accommodate around 25,000 new customers. Energa Operator will also be able to modernize its electricity network’s metering systems.
“Our support to Orlen is a strategic investment in the sustainable and long-term growth of the Polish economy,” said EIB Vice-President Teresa Czerwinska. “This underlines our strong commitment to a genuine and fair green transition, development of modern energy infrastructure, and energy security for Poland and the European Union.”
The operation advances EU goals to expand clean power such as wind and solar, become climate neutral by mid-century, and reduce reliance on energy imports, as outlined in the RePowerEU initiative of the European Commission. It also strengthens a Polish aim of accelerating the shift to a net-zero-emissions power grid.
“This record-high financing from the European Investment Bank is a strong vote of confidence in our growth strategy. We have an ambitious yet well-structured plan that will not only create value for our shareholders but also contribute to the broader economy. The EIB funding will be directed toward investments in our electricity distribution network, such as building new power lines and connecting new customers, including prosumers with their own renewable energy sources. These projects will be carried out by Energa Operator, which, thanks to the financing secured by ORLEN, is well-positioned to reinforce its leadership in Poland’s energy transition,” said Magdalena Bartoś, Vice President of the Management Board and Chief Financial Officer at ORLEN.
The EIB loan supports Energa Operator's long-term plans to expand the Polish national grid by 11,000 kilometres of new power lines and 7,000 kilometres of underground cables while upgrading nearly 10,000 kilometres of existing infrastructure by the end of 2035. These investments will enable the connection of 350,000 new customers and the integration of 9 GW of renewable energy sources, increasing the installed capacity of the national grid by more than 16 percent, and adding energy storage facilities to further stabilize the power system.
Source: https://www.eib.org