Poland’s Enea secures $2.4 billion for distribution network modernisation
Grzegorz Kinelski, president of Enea (left) with Mirosław Czekaj, president of Bank Gospodarstwa Krajowego. Image courtesy Enea
Polish DSO Enea has obtained over PLN9 billion ($2.4 billion) from Bank Gospodarstwa Krajowego to develop a modern distribution network with smart grid technology.
The loan agreement is being financed from the National Resilience and Recovery Plan (KPO) to develop the Group’s modern power infrastructure, including the construction and modernisation of distribution networks.
With the funds, energy users and sources will be connected to a smart power grid, developing and modernising the distribution network in accordance with the modern standard of the smart grid. Communication systems and ICT solutions will also be expanded to support the network operations.
The investments will cover almost the entire area of activity of Enea Operator, a distribution company belonging to Enea Group.
Jakub Jaworowski, Poland’s minister of State Assets, commented in a release: “I am pleased that the energy transformation, which is one of the most important challenges facing Poland, is still accelerating.
“As a result of signing this agreement, billions of zlotys from KPO funds will be invested in our energy security. I congratulate Enea on signing this agreement. This is another example of energy companies being able to obtain financial resources and invest them in infrastructure and the development of renewable energy sources.
“This is appreciated by shareholders, as evidenced by the increase in the company’s shares by about 140% since Q4 2023 and about 40% in less than five months of this year.”
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Fund use and structure
With the funds from the loan, Enea Operator plans to finance the construction and modernisation of several thousand kilometres of power lines.
These investments will enable the connection of further megawatts of new generating capacity, including from renewable energy sources.
The funds will be transferred to Enea by Bank Gospodarstwa Krajowego (BGK) as part of the investment G3.1.4., ‘Support for the national energy system (Energy Support Fund)’ component G (RePowerEU).
The Energy Support Fund (EFF) is a key financial instrument within the KPO, aiming to support the energy transformation in Poland by providing preferential loans for strategic investments in the energy sector.
The EFF namely aims to accelerate energy infrastructure modernisation of energy infrastructure, renewable energy integration and Poland’s energy security.
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Said Paulina Hennig-Kloska, minister of Climate and Environment: “The Energy Support Fund launched by the Ministry of Climate and Environment amounts to a total of PLN70 billion ($18.7 billion) for the modernisation of the Polish power system in order to guarantee Poland’s energy security, eliminate the risk of blackout and enable the connection of new energy sources.”
Marek Szymankiewicz, president of Enea Operator, said: “As part of the project, Enea Operator will undertake activities that not only respond to the current needs of the sector, but will also prepare it for the challenges of the future [including] further development of distributed energy, electromobility and dynamic changes in the energy consumption model.”
Added Prof. Marta Postuła, first vice president of BGK: “A modern, disruption-resistant and rapidly changing supply and demand energy grid is key to not only energy security, but also the security of the entire country in general.
“This year’s blackout in Spain or last year’s in the Balkans are the best proof of this. The lack of appropriate infrastructure also means the inability to use modern technologies.”
The loan funds will be released in tranches in 2025-2036, while the principal is scheduled to be repaid in instalments from 2034 to 2050.
The Group plans to allocate approximately PLN41 billion ($11 billion) until 2035 in the distribution segment, which will significantly increase the resilience of the national energy system and enable further development of renewable energy sources.
