Poland’s Enea secures distribution modernisation and smart metering EIB loan

Polish power company Enea has secured an investment loan agreement with the European Investment Bank (EIB) of PLN1 billion ($251 million) for the modernisation of the distribution network, including network construction and modernisation, as well as the installation of 2.4 million smart meters.

The direct beneficiary of the modernisation financing will be ENEA Operator Sp. z o.o., a company in the ENEA S.A. Group responsible for operating the distribution network.

The investment programme includes:

• Installation of 2.4 million smart meters
• Modernisation and construction of medium and low voltage power networks, with a total length of almost 8,000km to connect 140,000 new customers
• Increasing the rated power of transformers by 633MVA
• Connecting 4.3GW of new renewable energy sources.

The investments will cover the years 2023-2025 and will be implemented in EIB cohesion priority regions in western Poland and are distributed within four Voivodships, namely Wielkopolskie, Zachodniopomorskie, Lubuskie and Kujawsko-Pomorskie.

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Said Paweł Majewski, president of the management board of Enea SA, in a release: “The transformation of the Polish energy sector is not only about intensive expansion of renewable energy sources. It is also an efficient distribution network, guaranteeing stable and safe electricity supplies and bidirectional flows.

“Obtaining financial capital to achieve our goals in the area of distribution will contribute to maintaining high quality of services and will increase the network’s potential for connecting new renewable energy sources and their integration with the network. This year, we have already allocated PLN 1.7 billion ($426 million) for investments in the area of distribution.”

The EIB and Enea called the investment agreement in line with their strategic policies and agendas; for the former, the ‘Energy Lending Policy’ of the EIB and the REPowerEU initiative; for Enea, the ‘Green change of Enea’, in accordance with the Development Strategy of the Enea Group.

Enea also cites the European Union’s taxonomy, which calls modern distribution networks a key element necessary for the development of distributed sources of clean energy that support sustainable economic development.

Said EIB vice-president Teresa Czerwińska: “Supporting the REPowerEU objective of reducing dependence on energy imports is of the utmost importance, and we are happy to strengthen the EIB’s partnership with ENEA by way of this agreement.

“This investment will not only accelerate the transformation and decarbonisation of the Polish energy sector but will also contribute to the creation of new jobs and strengthen economic development.”