Thursday, September 29, 2022

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PGE to raise funds for investments in the energy transition

Poland’s largest, state-owned power producer PGE Polska Grupa Energetyczna is planning to issue series E shares in an effort to raise an estimated 3.2 billion Polish zloty (around 700 million euros). The raised funds will be invested in energy transition projects such as distribution grid development, and decarbonisation through low-carbon as well as renewable energy sources.

“We want to intensify the implementation of the ambitious transition goals outlined in PGE Group’s strategy. This requires additional funding for development […]”, remarked Wojciech Dąbrowski, CEO of PGE Polska Grupa Energetyczna.

“The funding raised will be used to develop capital-intensive investment projects, including grid cabling, new photovoltaic projects,  acquisitions of onshore wind farms, PV farms and low-carbon gas sources. We would like our largest investors to participate in the offer”, he emphasised.

PGE will use any additional funding raised to adapt to regulatory changes and the evolving market environment.

“PGE Group’s long-term objective is climate neutrality by 2050 but the share of renewable energy in the Group’s portfolio will reach 50 per cent already by 2030. We will spend 75 billion Polish zloty on investments until 2030″, Mr Dąbrowski underscored.

“Our shareholders received PGE Group’s strategy well and they understand the necessity of carrying out the energy transition. The consistent implementation of investments transforming the PGE Group increases the trust in our company among investors, strengthens the company’s competitive position and increases its credibility and stability”, he added.

The planned new equity issue will make it possible to accelerate projects in 2022-2026 across three areas: distribution of the future or the roll-out of smart meters and the efficiency enhancement of connection processes for new customers and renewable energy sources; intensification of renewables development such as the acquisition of onshore wind and PV farms; as well as decarbonisation through the development of low-carbon energy sources in Zgierz, Kielce and Bydgoszcz.

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