| Project Detail |
The project consists in an investment programme of Energa SA electricity distribution network in Poland over the period 2023-2025. The programme includes investments in network rehabilitation and expansion, and metering.
Additionality and Impact
The Programme supports the modernization, reinforcement and digitalisation of the electricity distribution network infrastructure in northern and central Poland, consistently with the countrys National Energy and Climate Plan and in alignment with EIB policies. All of the programme schemes are located in Cohesion Priority Regions. The programme is expected to deliver economic benefits over the financial return, in particular by addressing market failures linked to negative environmental externalities (reducing GHG emissions from power generation by connecting renewables and, indirectly, from mobility) and the supply of public goods (security of power supply) and has positive ESG impacts.
The Programme contributes to Banks lending priority objectives on Climate Action and Environmental Sustainability and it aligns with the REPowerEU objectives. The financing of the programme will contribute to the Banks ELP themes on Securing the Enabling Infrastructure (energy networks) and Innovative technologies and new types of energy infrastructure (smart meters).
In line with the EU Taxonomy, electricity grid infrastructure in Europe is considered eligible for classification as an activity contributing to climate change mitigation.
The project is expected to deliver good economic benefits and good broader social benefits. The promoter is experienced in works of this nature and has a sound project management system in place.
The Promoter appreciates the financial value added provided by the EIB. The long tenor of the EIB loan (18) is well in line with the economic life of the underlying electricity distribution assets (>25 years) and it is perfectly suited to finance investments with long payback period such as the Project implemented by ORLEN. The funding of similar maturities is not available on the Polish bond or loan market. Customised terms such as flexible drawdown over the long availability period are of value to the Promoter because of the multiannual Projects implementation period. The EIB involvement should have a crowding-in effect and send a strong signalling effect to commercial banks operating in Poland, EBRD and other stakeholders that EIB is standing by to support the decarbonisation of the Polish energy sector.
Objectives
The aim is to increase the distribution network capacity, maintain or increase its reliability, safety and security, renew existing assets and planned development (including renewable energy sources) as well as deploy smart technologies.
Sector(s)
Energy - Electricity, gas, steam and air conditioning supply
Proposed EIB finance (Approximate amount)
PLN 3500 million (EUR 810 million)
Total cost (Approximate amount)
PLN 6481 million (EUR 1500 million) |
