The ORLEN Group will implement a strategic investment program in the field of energy distribution, increasing the safety and efficiency of electricity supply in the northern and central areas of Poland. The European Investment Bank will provide funding for the program, having allocated ORLEN 3.5 billion zlotys for the strategic development of the network, including connections for renewable energy sources, modernisation and investment in a smart grid. EBI’s funding, offered under favourable terms in comparison to commercial banks, will significantly accelerate the implementation of these plans. The value of the first signed contract amounted to 900 million zlotys. The program will be implemented by Energa Operator.
“The key to achieving emission neutrality is not just switching to different generation sources, but also improving operational efficiency. The development of distributed sources, supply and demand balancing, energy storage, these are all challenges that the Polish economy faces. Efficient energy management has the potential to become one of the major competitive advantages of the Polish and European economies. This is why large investment programs that modernise our network are so important. Funding obtained from the European Investment Bank will enable us to meet these challenges while increasing Poland’s energy security,” says Ireneusz Fąfara, President of ORLEN’s Management Board.
The investment program from Energa Operator mainly aims to connect new consumers, including new renewable energy sources, which is crucial from the perspective of the dynamic increase in renewable energy sources in Poland. The investments will also include the modernisation of the distribution network, the construction and modernisation of distribution assets, and the development of a smart grid, mainly smart metering systems, of which the company is a national leader.
“The support of 900 million zlotys for the development and modernisation of the energy network confirms the role of the EIB as an established partner in the multi-dimensional energy transformation in Poland,” said Professor Teresa Czerwińska, Vice President of the EBI. “As the EU’s climate bank, the EIB supports strategic investment directions to improve energy efficiency, develop renewable energy sources, and ensure supply stability and security. We expect the seventh EBI loan agreement with the ORLEN group to contribute to achieving these goals,” added the Vice President of the EBI.
The funds allocated by the EIB amounting to a total of 3.5 billion zlotys will enable Energa Operator to finance these investments in the northern and central areas of Poland which require particular support. According to the agreement, the funds can be utilised in tranches within 3 years from the date of signing the contract. The repayment commitment will, however, be maximum within 15 years from its inception.
“Obtaining financing from the European Investment Bank, a reliable partner in the most important transformation projects in Europe, is particularly significant for us. Utilising funding dedicated to transformation will not only enable the execution of planned investments. It will also enhance the Group’s financial security by providing long-term access to attractive funds,” says Magdalena Bartoś, Vice President of ORLEN for Financial Affairs.
Energa Operator from the ORLEN group is a leading energy distributor in northern and central Poland. The company delivers electricity to 3.4 million customers. The total length of power lines operated by the group is nearly 200,000 km and covers about 24% of the country’s area.
Source: https://managerplus.pl/orlen-inwestuje-35-mld-zl-w-rozwoj-sieci-dystrybucji-energii-39038
