The European Bank for Reconstruction and Development (EBRD) has approved a funding of PLN500m (€115m) to support the modernisation of electricity grid system in Poland.
Polish power company PGE Polska Grupa Energetyczna (PGE) will receive the loan for the grid modernisation program.
Through its subsidiary PGE Dystrybucja, the PGE Capital Group has started an investment program of about PLN7bn (€1.6bn) to modernise the electricity distribution network between 2016 and 2019.
PGE is a 57% state-owned power utility, which is mostly having its operations in the eastern and central regions of the country
PGE's investment program will enable to accommodate the growing volume of small-scale and distributed generation of renewable energy
EBRD power and energy utilities head Harry Boyd-Carpenter said: “This is a very important transaction for our Bank, our partner PGE and also for Poland. We are delighted to support PGE in the transformation of their network into a modern, efficient and cleaner system.”
PGE Polska Grupa Energetyczna CEO Henryk Baranowski said: “At Group level, we are systematically expanding and diversifying our portfolio of financing sources.
“Another agreement executed with an international financial institution, and a number of projects launched on the Polish financial market, show that PGE Group is perceived as a reliable and solid partner.”
In December 2015, EBRD granted €50m in financing to poland's Bank Millennium for on-lending to entrepreneurs who are seeking to reduce their energy costs with new and more efficient equipment.
Till now, EBRD has provided about €8.4bn funding for around 400 projects in different sectors of the Polish economy.
Image: EBRD’s funding will be used to modernise the electricity grid system in Poland. Photo: courtesy of The European Bank for Reconstruction and Development.