ORLEN Group to invest PLN 3.5 billion in strategic programme to upgrade electricity distribution network
The ORLEN Group will implement a strategic investment program in the field of energy distribution networks, increasing the security and efficiency of electricity supplies in northern and central Poland. Financing for the program will be provided by the European Investment Bank (EIB), which has approved a PLN 3.5 billion loan to ORLEN to support the strategic development of its electricity distribution infrastructure, including renewable energy (RES) connections, network upgrades, and investments in smart grid technology. This EIB financing, offered on preferential terms compared to commercial banks, will significantly accelerate the implementation of plans in this area. The initial financing agreement signed is valued at PLN 900 million. The programme will be implemented by Energa Operator.
“Achieving carbon neutrality requires not only a shift in generation sources but also significant improvements in operational efficiency. The rollout of distributed generation, demand-supply balancing, and energy storage represent crucial challenges for Poland’s economy. Effective energy management can provide a substantial competitive edge for both the Polish and broader European economies. Hence, large-scale investment programmes to upgrade our network are vital. The financing provided by the European Investment Bank will allow us to address these priorities while strengthening Poland’s energy security” said Ireneusz Fąfara, CEO and President of the Management Board of ORLEN.
Energa Operator’s investment programme primarily targets connecting new users, including new RES, which is essential for accommodating the rapid growth of renewables in Poland. The programme also includes comprehensive upgrades to the distribution network, the construction and enhancement of distribution assets, and the deployment of advanced smart grid solutions, with a particular focus on smart metering systems – an area in which Energa Operator leads the Polish market.
“This new transaction reaffirms the EIB’s role as a trusted partner of multidimensional energy transition in Poland” said Teresa Czerwińska, Vice President of EIB. “As the climate bank of the European Union, the EIB supports strategic investments in energy efficiency, renewable energy sources, as well as stability and security of supply. We expect this seventh EIB financing agreement with ORLEN to further these objectives”.
The total financing of PLN 3.5 billion approved by the EIB will enable Energa Operator to drive essential investment projects across northern and central Poland, regions identified as requiring targeted support. Under the terms of the agreement, the funds will be disbursed in tranches over a three-year period from the execution date, with repayments spread over a maximum term of 15 years from the initial disbursement.
"The financing secured from the European Investment Bank – a key partner in Europe’s most impactful transition projects – is of particular importance to us. Utilising a funding source dedicated to the energy transition will not only enable us to execute our planned investments but will also strengthen the Group’s financial security thanks to the long-term availability of these funds at a competitive cost," said Magdalena Bartoś, CFO and Vice President of the ORLEN Management Board.
Energa Operator, an ORLEN Group company, is a leading electricity distributor across northern and central Poland, supplying power to 3.4 million customers. The Group manages close to 200,000 km of power lines, covering approximately 24% of Poland’s land area.
Renewable energy sources connected to Energa Operator’s network now reach a total capacity of approximately 9.2 GW. This year alone, by the end of the third quarter, nearly 21,500 new RES installations (including micro-installations by prosumers) have been connected, adding a combined capacity of 801 MW.