Poland’s TAURON secures €2.6bn loan for grid development
Image courtesy TAURON
Bank Gospodarstwa Krajowego (BGK) and TAURON Polska Energia have signed a loan agreement of PLN11 billion (€2.6 billion; $2.7 billion) to finance the development and adaptation of the power grid.
According to TAURON, a Polish energy company, the funds, which come from the National Resilient and Recover Plan (KPO), are a record amount – the largest ever financing of an investment supporting the energy transformation in Poland.
The loan proceeds will be used to finance expenses incurred by TAURON’s subsidiary, TAURON Dystrybucja SA, for the development and adaptation of the power grid to the needs of energy transformation and climate change.
The loan will increase the possibilities of connecting additional generation sources to the power grid while improving the flexibility of the grid and ensuring reliability of supply.
The largest part of the KPO funds, will be allocated to investments in clean and cost-effective energy. Specifically, it will go towards large infrastructure investments related to energy transformation, including wind farms in the Baltic Sea, installation and service terminals, transmission and distribution networks.
Commenting in a release was Krzysztof Surma, vice-president of the Management Board for Finance at TAURON Polska Energia: “The funds will go to the distribution segment, which is key for us and generates the largest part of the Group’s EBIDTA.
“In the coming years, we expect a rapid increase in demand for energy, which is why by 2035 we will allocate PLN60 billion (€14.1 billion; $14.8 billion) for the expansion and modernisation of the network, and the obtained loan will significantly help in this.
“The loan terms are very attractive to us, and the long, 25-year repayment period will significantly extend the average maturity of the TAURON Group’s debt. Bank Gospodarstwa Krajowego is our key partner in obtaining financing for transformation purposes, which is why we are all the more pleased with the prospect of further long-term and fruitful cooperation in implementing a strategy based on strong distribution.”
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The loan will be paid out gradually, based on applications for payment submitted by TAURON as the works financed by the loan progress.
Said Marta Postuła, first vice-president of Bank Gospodarstwa Krajowego: “Today, with the largest investment financing agreement in the history of the Polish energy sector, we are starting to implement the funds from the Energy Support Fund, which is part of the National Reconstruction Plan.
“The competitiveness and innovation of our economy depend on the energy transformation. Without the funds from the KPO at the disposal of BGK, such projects would not have a chance of being implemented in the planned time.
“I believe that thanks to today’s agreement, the coming years will bring a dramatic improvement in the energy security of the southern regions of the country, and at the same time, recipients will gain new, previously unavailable opportunities to use increasingly green energy.”
Added Grzegorz Lot, president of the Management Board of TAURON Polska Energia: “The energy transformation in Poland requires a strong, flexible and secure distribution network, and investments in the network require very large financial outlays.
“The funds obtained under the KPO will allow us to develop the energy infrastructure and integrate it with modern technologies. Both customers and local communities will benefit from this. Additionally, it will increase the development opportunities for RES.”
This is the first loan granted by Bank Gospodarstwa Krajowego under the KPO dedicated to distribution networks. It is at the same time the largest loan for TAURON Polska Energia.
