Historic Agreement for Power Grid Transformation

Representatives of Bank Gospodarstwa Krajowego (BGK) and TAURON Polska Energia signed a loan agreement today, granting the company PLN 11 billion to finance the development and modernization of the power grid. This is a record amount – the largest investment financing in history supporting the energy transition in Poland. The funds come from the National Recovery and Resilience Plan (KPO).

The loan funds will be allocated to financing expenditures incurred by TAURON’s subsidiary, TAURON Dystrybucja S.A., for the development and modernization of the power grid to meet the needs of the energy transition and climate change. The loan will increase the capacity to connect new generation sources to the grid. These investments will improve grid flexibility and ensure the reliability of energy supply.

"The largest portion of the KPO funds has been allocated to investments in clean and cost-effective energy—over PLN 100 billion. These funds will be used for major infrastructure projects related to the energy transition, including offshore wind farms in the Baltic Sea, installation and service terminals, as well as transmission and distribution networks," said Katarzyna Pełczyńska-Nałęcz, Minister of Funds and Regional Policy.

The loan will be disbursed progressively, based on withdrawal requests submitted by TAURON as work funded by the loan progresses. The funds will be released up to the amount allocated to BGK for this purpose by the Ministry of Climate and Environment.

"The energy transition in Poland requires a strong, flexible, and secure distribution network, and investments in the grid demand significant financial resources. The funds obtained through the KPO will allow us to develop energy infrastructure and integrate it with modern technologies. Both customers and local communities will benefit from this. Additionally, it will enhance opportunities for the development of renewable energy sources," noted Grzegorz Lot, President of the Management Board of TAURON Polska Energia.

This is the first loan granted by Bank Gospodarstwa Krajowego under the KPO for the distribution networks segment and also the largest loan ever received by TAURON Polska Energia.

"The funds will go to our key distribution segment, which generates the largest part of the Group’s EBITDA. In the coming years, we expect a sharp increase in energy demand, which is why we plan to allocate PLN 60 billion to expanding and modernizing the grid by 2035, and the acquired loan will significantly support this effort," said Krzysztof Surma, Vice President of Finance at TAURON Polska Energia.

Source: https://media.tauron.pl/