EIB and ORLEN Group Sign PLN 900M Loan to Boost Poland’s Energy Transition

The EIB financing will contribute to modernising electricity distribution across northern and central Poland, facilitating the integration of more renewable energy sources (RES).

The European Investment Bank (EIB) has signed a PLN 900 million loan agreement with ORLEN Group, Poland’s largest energy company, to fund critical projects aimed at advancing the country’s energy transition. This financial support will focus on enhancing and expanding the power grid of Energa, a distribution system operator majority-owned by ORLEN. The loan is part of a larger PLN 3.5 billion financing package approved by the EIB for Energa’s network development between 2024 and 2025.

The EIB financing will contribute to modernising electricity distribution across northern and central Poland, facilitating the integration of more renewable energy sources (RES). This is essential for Poland's energy security and achieving carbon neutrality, as it enhances the capacity to connect and manage new renewable energy installations.

Strengthening Energy Security and Supporting Green Transition

EIB Vice-President Teresa Czerwińska commented on the agreement, saying, "This new transaction reaffirms the EIB’s role as a trusted partner in Poland’s energy transition. As the climate bank of the European Union, the EIB supports strategic investments in energy efficiency, renewable energy sources, and the stability of energy supply."

The EIB funding will help Energa modernise its distribution network, improve energy efficiency, and enhance power supply security. The investment will also increase the company’s renewable energy connection capacity by approximately 4.8 GW, facilitate the integration of distributed generation, and upgrade critical smart grid components, including smart metering systems.

Ireneusz Fąfara, President of the Management Board and CEO of ORLEN, highlighted the significance of the investment, stating, “Achieving carbon neutrality requires improvements not only in generation sources but also in operational efficiency. Effective energy management can provide Poland—and Europe—substantial economic advantages. The financing from the EIB will enable us to address these priorities and strengthen Poland’s energy security.”

Support for Poland’s REPowerEU Goals

The agreement is part of the broader REPowerEU initiative, which aims to increase the EU’s energy independence and accelerate the green transition. Under this programme, the EIB is committed to providing €45 billion in loans and equity financing by 2027 to support the EU’s energy objectives.

EIB financing in Poland has significantly increased in recent years. In 2023, the bank allocated €1.78 billion under REPowerEU, an 80% increase from 2022. Recent financing agreements have supported projects such as the modernisation of rail network power supply systems, with further agreements expected in the coming months.

Long-Term Impact and Financial Security for ORLEN

The loan agreement with ORLEN Group will be disbursed in tranches over a three-year period, with repayments to be spread over a maximum of 15 years. Magdalena Bartoś, Vice President of the Management Board of ORLEN Group, Finance, emphasised the importance of the EIB’s support, saying, “The financing secured from the European Investment Bank will not only allow us to carry out our planned investments in energy transition but will also strengthen the Group’s financial security thanks to the long-term availability of these funds at a competitive cost.”

A Commitment to Renewable Energy Growth

ORLEN Group has already invested over PLN 8.3 billion in electricity distribution over the past five years, significantly increasing Energa’s renewable energy capacity. Currently, the company’s network supports around 9.2 GW of renewable energy capacity. In 2024, Energa connected nearly 21,500 new renewable energy installations, contributing an additional 801 MW to the grid.

This new agreement between the EIB and ORLEN is expected to play a key role in advancing Poland’s transition to a more sustainable and secure energy system while ensuring the continued growth of renewable energy infrastructure and innovation.