Multi-utility company ORLEN has entered a third financing agreement with the European Investment Bank (EIB) for a 1.7bn zloty ($442.5m) loan to expand the electricity distribution network in Poland.
The new funding almost equals the sum of the two previous agreements and brings the total funding secured from the EIB to 3.5bn zlotys.
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The first agreement for 900m zlotys from the 3.5bn zlotys loan was announced by the EIB in November 2024, while the second agreement for a further 900m zlotys was signed in December.
The loan will support the 40bn zlotys investment programme announced by ORLEN’s electricity supplier Energa Operator in 2025 to improve the security and efficiency of electricity supplies and increase the potential for integrating renewable energy sources.
The ORLEN Group can draw the funds in increments up to 2027, with a repayment term extending up to 15 years from the disbursement date.
ORLEN chief financial officer and vice-president of the management board Magdalena Bartoś stated: “This record-high financing from the European Investment Bank is a strong vote of confidence in our growth strategy. We have an ambitious yet well-structured plan that will not only create value for our shareholders but also contribute to the broader economy.”
This initiative aligns with the EU’s objectives to expand clean power sources such as wind and solar, achieve climate neutrality by the mid-21st century and reduce dependence on energy imports, as highlighted in the RePowerEU initiative of the European Commission.
It also supports Poland’s goal of transitioning to a net zero-emissions power grid.
EIB vice-president Teresa Czerwinska stated: “Our support to Orlen is a strategic investment in the sustainable and long-term growth of the Polish economy.
“This underlines our strong commitment to a genuine and fair green transition, development of modern energy infrastructure and energy security for Poland and the European Union.”
Energa Operator plans to construct 11,000km of new power lines and 7,000km of underground cables, and upgrade 10,000km of existing infrastructure by 2035.
These investments will connect 350,000 new customers and integrate 9GW of renewable energy sources, alongside energy storage facilities to stabilise the power system.
The company will utilise the latest EIB loan to enhance more than 4,600km of the existing grid infrastructure and construct an additional 2,300km of power lines in Poland. Energa Operator will also modernise its electricity network’s metering systems.
In addition to the EIB funding, Energa Operator secured 7.5bn zlotys from the National Recovery Plan to finance its investment programme in February 2025.
