EIB lends PLN1 billion to boosts modernisation of Poland's power grids

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EIB lends PLN1 billion to boosts modernisation of Poland's power grids

The European Investment Bank (EIB) has lent up to PLN946 million (US$251.8 million) to the Polish energy company ENEA S.A. for the upgrade and extension of the electricity networks in north-western Poland.

This investment programme will be carried out over the period 2015-2017, contributing to more competitive and secure energy distribution in the region.

With the support of the EIB, ENEA will construct or refurbish 460 km of high-voltage and 3800 km of medium-voltage and low-voltage lines and cables. Up to 3300 transformers will be installed or upgraded. This is of crucial importance, as the company services 20% of the country in terms of area and distributes 13% of the electricity consumed in Poland. The investment programme will help to connect around 45 000 new system users. It will also improve the reliability of the electricity supply and reduce losses.

László Baranyay, EIB Vice-President responsible for lending in Poland, said,

“The EIB, as the bank of the European Union, strongly promotes a competitive and secure energy supply. We therefore particularly welcome this agreement with ENEA, as the project will ensure a secure supply to new customers through the expansion of the company’s electricity network. This loan confirms the EIB’s commitment to the modernisation of the Polish energy sector, which is necessary for the successful economic development of the country”.

Krzysztof Zamasz, President of the Management Board of Enea, added:

"We have ambitious investment plans and implement them consistently according to our strategy. We are a reliable and credible partner for financial institutions and the agreement with the EIB confirms the fact. Funds obtained from the cooperation will support investments in the distribution and this ultimately will increase safety and reliability of energy supplies for our customers”

This operation builds on the EIB’s successful cooperation with ENEA since 2012. The previous €343 million loan financed an earlier modernisation programme for power distribution.

The EIB supports renewable energy, energy efficiency and energy infrastructure modernisation projects in Poland while at the same time taking account of important energy security considerations. Since the EIB began operating in Poland in 1990, the EU bank has provided almost €3 billion in backing for Polish energy projects, including this operation.

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