EIB Grants PLN 1Billion Loan to PGE for Upgrading Poland’s Railway Power Systems

The EIB funding will support the construction of 43 new electrical substations and the modernization of 24 existing ones.

Polska Grupa Energetyczna (PGE), Poland’s leading utility company, has secured a PLN 1 billion loan from the European Investment Bank (EIB) to enhance the country’s railway power infrastructure. This 18-year loan represents the EIB’s sixth agreement with PGE, which now benefits from over €1.3 billion in credit lines from the bank.

Scope of the Loan:

The EIB funding will support the construction of 43 new electrical substations and the modernization of 24 existing ones. These substations are crucial for converting alternating current (AC) to direct current (DC), essential for powering trains across Poland. The loan also covers the development of high-voltage and medium-voltage power lines, along with related infrastructure to ensure a reliable power supply for the rail network.

Project Goals and Benefits:

The investment aims to enhance railway safety, increase the capacity of rail lines, and improve train speeds, ultimately reducing journey times. The modernisation project aligns with the EU’s objectives of promoting sustainable transport, facilitating regional connectivity, reducing road traffic congestion, and minimizing energy consumption, air pollution, and noise.

Statements from EIB and PGE:

EIB Vice-President Teresa Czerwińska highlighted the importance of modernizing railway infrastructure for quality of life, business benefits, and sustainable development. She emphasized that the project is a testament to the EIB’s role as a key partner in significant infrastructure investments in Poland.

Przemysław Jastrzębski, Vice-President of the PGE Group Management Board, emphasized that the loan provides essential tools for enhancing railway power systems. He noted that the funds will enable investments in modern power infrastructure and innovative renewable energy projects, such as systems for recuperating and storing energy from braking trains.

Impact on Polish Railways:

The PGE Energetyka Kolejowa’s Modernisation of Power Systems (MUZa) project will significantly improve the efficiency and safety of Poland’s railways. The upgraded infrastructure will support the growing demands of rail transport and contribute to the broader goal of sustainable transport development.

Future Prospects:

The project is expected to accelerate Poland’s transformation towards a more efficient and eco-friendly power system. By improving rail connections, the investment will facilitate regional development and align with broader EU sustainability goals.

The EIB’s substantial loan to PGE underscores its commitment to advancing infrastructure projects that foster sustainable development and enhance transportation networks. The modernization of Poland’s railway power systems will not only improve rail efficiency and safety but also contribute to environmental and economic benefits, reflecting the EIB’s ongoing support for key infrastructure investments across Europe.