Sunday, May 19, 2024
HomeElectricityPGE and EIB sign new financing agreement to modernise network infrastructure

PGE and EIB sign new financing agreement to modernise network infrastructure

Last week, the European Investment Bank (EIB) and Polska Grupa Energetyczna (PGE) signed a financing agreement of 2 million złotych (approximately 426,000 euros) for the modernisation of the electricity distribution network infrastructure, which will enable the development of the network and its integration with renewable energy sources (RES). PGE Distribution (PGE Dystrybucja), responsible for the distribution segment of the PGE Group, will be the direct beneficiary of the financing.

In particular, the funds will be used for investments in power lines, transformers, digital communication, energy storage and modern metering, which will allow PGE’s distribution network to be adapted to connect RES. The implementation of the investment is planned for the 2022-2025 period.

“PGE’s cooperation with the EIB is a good example for all financial institutions in Poland on how to finance the energy transformation. Let’s remember, the transformation of the energy sector is not only the implementation of climate goals but also ensuring the security and independence of the Polish energy sector,” said Wojciech Dąbrowski, President of the Management Board of PGE Polska Grupa Energetyczna. “Investments in the distribution network are an essential element of implementing this strategy. This will ensure efficient and effective management of electricity generation from RES, as well as storage and delivery to customers. Thanks to the funds obtained from the EIB, PGE will prepare the grid to connect the ongoing and planned wind and photovoltaic investments.”

The agreement is expected to “accelerate” the transformation of the Polish energy sector. The projects will be implemented in regions covered by the EU cohesion policy, including the voivodeship of Małopolskie, Warmińsko-Mazurskie, Łódzkie, Świętokrzyskie, Lubelskie, Podkarpackie, Podlaskie and Mazowieckie.

“Energy transformation is a priority for the EIB as it is a key goal for Poland and the entire European Union. That is why we are proud to support PGE Polska Grupa Energetyczna in its strategic plan to modernise and develop the distribution network. Modern distribution networks will enable the integration of renewable energy sources, which will strengthen the diversification of the energy sector in Poland. The EIB, as the EU bank, will make every effort to ensure that Poland and Europe can become independent of fossil fuels and carry out the transformation of the EU energy sector as effectively as possible,” said Teresa Czerwińska, Vice-President of the European Investment Bank.

PGE Polska Grupa Energetyczna is the largest energy company and producer of green energy in Poland. According to the company’s press release, the latest project contributes to the goals set in the PGE Group’s strategy, which includes steering the Polish energy sector towards the “zero-emission direction”.

Moreover, PGE’s strategy envisages strategic investments that can help the company achieve climate neutrality by 2050. The investment plan includes, among others, the construction of the country’s largest wind farms in the Baltic Sea. By 2030, two offshore PGE farms are expected to be built, with a total capacity of 2.5 gigawatts (GW) and at least 1 GW after 2030. PGE’s strategic goal is to have at least 6.5 GW of installed capacity from this technology by 2040. By 2030, the PGE Group will also build 3 GW of new photovoltaic capacity, expand its onshore wind farm portfolio by at least 1 GW, and build at least 800 megawatts (MW) of energy storage, strengthening the needed infrastructure for connecting RES and improving the reliability of power supply. 

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