The credit provided by the EIB is one of the elements helping to secure new sources of financing for the green capital expenditure programme to be pursued by the PGE Capital Group.
The agreement provides for the co-financing of the onshore wind farms construction project to be implemented by PGE Energia Odnawialna – a company belonging to the PGE Group and dedicated to renewable sources of energy. The EIB will provide PGE with a dedicated credit line for a period of up to 17 years and for an amount that represents around 50% of the project cost. The funds acquired under the credit agreement will be allocated for the financing of projects which are 100% eligible under EIB’s climate action objective (i.e. the three wind farms).
During the credit negotiation process, PGE presented its plans for changes in the energy mix, emphasising its commitment to actions aimed at energy transition and planned investments in zero-emission energy sources. The EIB will maintain an active dialogue with PGE on its corporate decarbonisation plan and seek ways of further supporting it.
EIB Vice-President Lilyana Pavlova, who oversees operations in Poland and Cohesion countries, commented: “We welcome PGE’s investment plans and its commitment to developping a more sustainable power generation portfolio via a dedicated renewable energy programme. The planned investments will contribute to the gradual decarbonisation of the Polish energy sector. This transformation will undoubtedly bring huge benefits to Poland’s economy and to its citizens thanks to a healthier environment.”
Capital expenditures on the construction of the Klaster wind farm complex are estimated at PLN 545m (approx. EUR 128.2m). The wind farms are located in the north-west of the Zachodniopomorskie province, in the districts of Kamień Pomorski and Gryfice, at a distance of between 3 and 13 km from the Baltic Sea shoreline. Construction operations began in February 2019 and, according to the plans, commercial operations should commence before the end of the first half of 2020. After the project is completed, the combined installed capacity of the wind farms operated by PGE will increase by 18% to about 650 MW, which will strengthen the PGE Group’s position as Poland’s leader in the generation of power from renewable energy sources.
At the time of its execution, the agreement between PGE and the EIB was the first energy project approved after the adoption of the Bank’s new energy lending policy.
The project will contribute to the diversification of the energy mix in Poland and to the EU renewable energy target of 32% by 2030.
Original source: EIB
Published on 13 January 2019