The European Investment Bank (EIB) has signed a PLN 900 million (€200 million) loan agreement with ORLEN Group, Poland’s largest energy company, to support critical energy transition projects. This funding will enable ORLEN-owned Energa, a leading electricity distribution system operator, to modernize and expand its power grid in northern and central Poland. The loan marks the first phase of a larger PLN 3.5 billion financing plan by the EIB to boost Energa's network by 2025.
Driving Renewable Energy Integration and Grid Modernization
The EIB loan will help improve the efficiency and security of Poland’s electricity distribution infrastructure. Key goals include:
- Expanding Renewable Energy Sources (RES): Increasing grid capacity to connect an additional 4.8 GW of renewable energy installations.
- Modernizing Distribution Networks: Upgrading distribution assets and incorporating advanced technologies, such as smart grids and smart metering.
- Improving Energy Supply: Enhancing reliability and operational efficiency for millions of residential and business customers.
“This partnership reinforces the EIB’s commitment to Poland’s energy transformation. By supporting ORLEN’s projects, we are facilitating renewable energy integration, boosting grid resilience, and contributing to the EU’s green transition goals,” said Teresa Czerwińska, EIB Vice-President.
Supporting Poland’s Climate Goals
ORLEN Group President Ireneusz Fąfara highlighted the strategic importance of this investment:
“Achieving carbon neutrality requires a dual focus on renewable energy generation and improved grid efficiency. This financing allows us to address key challenges, such as energy storage and demand-supply balancing, while bolstering Poland’s energy security and economic competitiveness.”
The EIB’s funding comes under the REPowerEU initiative, which aims to accelerate the EU's transition to renewable energy and reduce dependence on fossil fuels. By 2027, the EIB plans to provide €45 billion in loans and equity financing under REPowerEU, with €1.78 billion allocated to Poland in 2023 alone—a remarkable 80% increase from 2022.
ORLEN Group’s Green Ambitions
ORLEN Group has made significant strides in advancing Poland’s energy transition. Over the past five years, the company has invested over PLN 8.3 billion in electricity distribution. Energa’s current renewable energy capacity stands at 9.2 GW, with nearly 21,500 new renewable installations (801 MW) connected in 2023 alone.
ORLEN’s strategic investments include:
- Expanding wind energy projects on land and at sea.
- Developing photovoltaic farms, biogas, and biomethane facilities.
- Promoting electromobility, green hydrogen, and synthetic fuel solutions.
By the end of the decade, ORLEN plans to invest PLN 320 billion in strategic projects, with 40% dedicated to green initiatives, underscoring its commitment to achieving total emission neutrality by 2050.
Strengthening Poland’s Energy Security
The financing agreement with the EIB will support ORLEN’s efforts to future-proof Poland’s energy infrastructure. EIB funds will be disbursed over three years, with repayments spread across a maximum of 15 years. This long-term financing will enable ORLEN to pursue its ambitious investment plans while maintaining financial stability.
A Step Toward a Green Future
The EIB-ORLEN partnership is a cornerstone of Poland’s energy transition, aligning with the EU’s broader climate goals. By fostering renewable energy adoption and modernizing energy infrastructure, the collaboration ensures a more sustainable and secure energy future for Poland and the wider region.
About EIB and ORLEN Group
The European Investment Bank is the EU’s long-term financing institution, dedicated to supporting projects that enhance economic competitiveness, innovation, and sustainable development. In 2023, the EIB Group allocated €88 billion to over 900 projects, with €49 billion directed toward green investments.
ORLEN Group, a Fortune Global 500 company, operates across 10 markets, including Poland, Germany, and Hungary, and reaches over 100 countries globally. As a regional leader in energy and sustainability, ORLEN continues to set benchmarks for green innovation and economic growth.
This partnership highlights Poland’s potential as a leader in renewable energy and green infrastructure, positioning the country for a sustainable future within the European energy landscape.
