The European Bank for Reconstruction and Development (EBRD) announced that it will provide a loan of up to €48m for the 220MW Potegowo wind farm, planned to be constructed in in north-eastern Poland.

2May - EBRD

Image: EBRD supports 220 MW Potegowo wind farm. Photo: Courtesy of European Bank for Reconstruction and Development.

EBRD said that the Potegowo wind facility represents the bank’s first project in renewable energy in Poland in three years. The Potegowo wind energy plant is planned to be constructed and operated by Potegowo Mashav, a special purpose vehicle incorporated in Poland and majority-owned by the Israel Infrastructure Fund.

The estimated cost for completion of the Potegowo project amounts to a total of €290m, and the wind farm is expected to make a major contribution in reducing air pollution by replacing 480,000 tons of CO2 emissions annually.

Mashav Energia CEO Tomer Eizenberg said: “We are thrilled to have the opportunity to build one of the largest wind farms in Poland, which would not have been possible without EBRD’s leadership.

“This is a significant milestone in our wind 220MW farm investment programme, having won the Polish government tender in November 2018 for the supply of wind generated energy to the Polish electricity network.”

Israel Infrastructure Fund managing partner Yaron Kestenbaum said: “We are delighted to be at the forefront of one of the largest on-shore wind farm projects in Poland, together with the team at EBRD.

EBRD’s implementation of a new renewable support mechanism, through which it is able to support the technical assistance and policy engagement, has enabled the bank to return to financing renewables in Poland.

The bank said that the Potegowo project is the first large scale onshore wind farm financed under the new support mechanism, where the primary goal of the new support system is to increase the share of renewables in its energy mix in Poland.

Currently, Poland is dependent on coal for almost 80% of its electricity generation. All the member countries of the European Union are committed to source at least 32% of their final energy consumption from renewable sources by 2030.

EBRD EMEA energy director Harry Boyd-Carpenter said: “This is a milestone project which represents a turning point for the Polish energy sector. Three major developments have made this possible. Renewables now are at the heart of the framework for the European energy sector. In this context, the Polish energy policy foresees a progressive shift away from coal to renewables.

“And, finally, we are in an era where renewable energy is not just a means to avoid carbon emissions; it is a source of power which does not damage air quality, does not require energy imports and which is highly affordable. We are proud to support the Israeli Infrastructure Fund, who with this Project is demonstrating the re-opening for the Polish renewables.”