ORLEN secures another PLN 900 million for expanding its energy network
ORLEN has entered into a second agreement with the European Investment Bank (EIB) to fund its strategic investment programme for building a modern electricity distribution network. The nearly PLN 1 billion in funding will go toward initiatives such as increasing the capacity for connecting renewable energy sources and installing 1,000 new electric vehicle charging points. The network expansion will also enhance the security of electricity supply for consumers.
The EIB-supported projects to be carried out by the ORLEN Group company Energa Operator are set to launch next year. By the close of 2026, the newly secured amount will fund the construction of approximately 830 kilometres of power lines and 320 kilometres of service lines, allowing Energa Operator to reach nearly 25,000 new customers. The plans also include investments in energy storage projects and the deployment of 170,000 smart meters for quick remote reading of energy consumption data.
“The ORLEN Group’s energy transition depends heavily on our ability to secure cost-effective financing for investment projects. Through our partnership with the European Investment Bank we have access to the necessary funding on highly favourable terms, significantly better than those offered by commercial lenders. Cost optimisation for our growth programmes is a priority, and directly supports the creation of shareholder value”, said Magdalena Bartoś, CFO and Vice President of the ORLEN Management Board.
The new projects will also bolster the ORLEN Group’s green energy capabilities. The investment programme includes plans to power 1,000 new EV charging points and to expand the grid’s capacity to integrate renewable energy projects, which is expected to add 1.4 GW of new zero-emission power sources, supplying clean energy to another 900,000 households.
“The EIB is doubling its financing to ORLEN this year because upgrades and expansion of Poland’s power distribution network are key aspects of energy transition in Poland,” said EIB Vice-President Teresa Czerwińska. “As the EU’s climate and development bank, the EIB has so far contracted some PLN 1.8 billion for that purpose out of more than PLN 3.5 billion envisaged for ORLEN’s subsidiary Energa. This will drive grid expansion to add new customers and upgrades to increase RES connection capacity. Investments will also increase supply security by improving the grid’s resilience to extreme weather events such as gale-force winds or heavy downpours that are aggravated by climate change. EIB financing will work towards these strategic goals for Poland’s safety and sustainable development through this partnership with ORLEN.”
The new agreement is the second agreement signed this year with the European Investment Bank to finance the distribution network expansion. The funding is part of a PLN 3.5 billion package earmarked by the EIB for ORLEN’s investments in this area. The loan, repayable over 15 years, will be extended on favourable terms, compared to those available from commercial banks. The first agreement earlier this year also provided ORLEN with PLN 900 million in financing.Energa
Operator, an ORLEN Group company, supplies electricity to 3.4 million customers, making it the leading energy distributor in northern and central Poland. The company operates a network spanning 200,000 kilometres and distributes over 22.5 TWh of electricity annually. The combined capacity of renewable energy sources connected to Energa Operator’s network has reached approximately 9.2 GW. In the first three quarters of this year alone, the company connected nearly 21,500 new renewable energy installations (including prosumer microinstallations) with a total capacity of 801 MW.
