EBRD to finance two Polish wind farms
Poland is accelerating its transition from fossil fuels with the development, construction and operation of two wind farms thanks to funding from the European Bank for Reconstruction and Development (EBRD).
The EBRD loan in local currency of PLN 275 million (equivalent to EUR 60.4 million) finances two separate projects, with a parallel commercial lender, Banco Santander SA, which benefits from a partial guarantee from the Agency Danish Export Credit (EKF), providing the same amount in a financial package of PLN 550 million.
The first is the 81.4 MW Banie 3 development in northwestern Poland, where 37 turbines will be built (the Bank financed Banie 1 and 2 in 2016). The second is located in Sepopol, in northeastern Poland, where 20 wind turbines with a capacity of 44 MW will be built.
EBRD loans will be split between the two parks, with 91.6 million PLN (20.1 million euros) to Derickar Investments, owner of the Sepopol wind farm, and 183.4 million PLN (40.3 million million euros) to Gaberpoint Investments, owner of Banie 3 Both are Polish companies ultimately owned by the Israeli renewable energy company, Energix Renewable Energies.
Poland is committed to reducing its dependence on the production of energy from coal, which has harmful effects on the environment and human health. Given that the country depends on coal for 70% of its electricity production, it faces one of the most significant energy transition challenges of any of the Bank’s countries of operations.
Renewable energies are vital for the transition, and funding for them has become scarce given the disruption caused by the global COVID-19 pandemic. These projects, which are expected to generate more than 348.3 GWh of zero-carbon renewable electricity that will lead to CO2 savings of at least 266,300 tpa, will support the country’s ongoing energy transition.
Poland is actively developing its renewable energy sector and aims to almost double the proportion of final energy consumption from renewables, from 12.2% at the end of 2019 to 23% in 2030.
In 2020, Poland’s installed wind capacity was 6.4 GW, representing 51% of its renewable energy capacity. Polish renewables are expected to grow rapidly over the next two decades, which is also confirmed by the ambitious targets set by the Polish authorities in the recently approved energy strategy.
The new plants will contribute to Poland’s contribution to the EU’s climate and energy targets for 2030, which include a reduction of at least 55% in greenhouse gas emissions.
Since the start of its operations in 1991, the EBRD has invested almost 10.9 billion euros in 457 projects from all sectors of the Polish economy. Supporting the country’s green transition with investments in renewable energies and energy efficiency remains one of the Bank’s priorities in Poland.
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