What are the specific challenges of the Polish PV market?
There is still much to achieve in the Polish energy mix. Particularly in the realm of photovoltaics, grid infrastructure poses a significant challenge. This issue is less about securing financing for improvements and more about implementation. The weak grid infrastructure hampers the connectivity of large-scale energy utilities, such as photovoltaic power stations, which in turn hinders the overall development of carbon-free energy in Poland.
It sounds like improving the grid is at the top of the list.
The financing of grid investments remains one of the top priorities for EIB financing in Poland. Recently EIB signed a loan of 1.7 billion Polish zlotys - which equals to €405 million - for Orlen to finance investment programs of its electricity supplier Energa Operator and improve and expand Poland’s electricity network. This is the third and final tranche of a 3.5- billion-zloty loan to Orlen for upgrades to the power grid in northern and central Poland. With the latest EIB loan tranche, Orlen subsidiary Energa Operator will upgrade over 4,600 kilometers of existing grid infrastructure and build a further 2,300 km of new power lines in Poland to accommodate around 25,000 new customers. Energa Operator will also be able to modernize its electricity network’s metering systems.
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What is the role of the EIB in the energy transition in Poland?
The EIB funds various renewable energy initiatives, including wind, solar, and biomass projects, to help diversify Poland’s energy mix and reduce reliance on fossil fuels. While the EIB is eager to support project financing, it’s important to note that we can finance directly only investments of a minimum project cost of 50 million euros. As a general rule EIB finances up to 50% of the project costs or 50% of the debt financing in case of project finance structures.
Can you give us an example of the procurement practice?
Last year climate and environment projects in Poland won €2.5 billion of EIB financing, including energy transition ones backed by REPowerEU. The EIB signed agreements totalling €850 million with ORLEN Group, ENEA and PGE to upgrade and expand power distribution grids across the country. Further agreements promoted energy efficiency, such as €211 million financing for Maspex, a leading producer of beverages and food in central and southeastern Europe. The investments will improve energy efficiency, enable renewable-power generation and recycle used water in manufacturing plants in Poland and Romania.
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How can smaller projects participate in EIB funding?
Financing for smaller projects will be facilitated through our commercial partners, such as the Bank of Environmental Protection (BOS), BNP Paribas Poland, Bank Pekao, among others. The EIB’s role can be that of a capital lender or a guarantor, providing the necessary guarantees to ensure a solid foundation and capital for investments.
How are responsibilities divided between the EIB and its partners?
We work on the basis of a full delegation model.
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Please expand on this.
This means that our partners carry out all the necessary checks on a project, monitor it and finally approve it.
Where and how can interested parties find EIB partners?
Investors and project developers can find a list of partners on our website.
Do you have a recent example for us?
In November 2024, the EIB Group signed its first security for private solar panel loans to Inbank in the amount of PLN 625 million. This agreement allows Inbank to issue new loans in a total height of PLN 701 million (over 160 million Euros) to individuals for solar panels and heat pumps. This will drive the green energy transition in the private sector in Poland. Also recently the EIB signed an agreement to support Poland’s largest utility Polska Grupa Energetyczna (PGE) with a €400 million loan towards the design and construction of Baltica 2, the European Union’s largest offshore wind farm to date. Baltica 2 will feature innovative technology for a 1.5 GW capacity and sit off the Polish coast in the Baltic Sea. The EIB loan is the biggest own resources contribution by a financial institution to the project. It is also the first part of a €1.4 billion package approved by the European Union’s climate bank to support PGE and Ørsted in erecting two new, large-scale offshore wind farms in the Baltic Sea.
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When did the EIB start supporting renewable projects?
We have been active in Poland for more than 20 years and in the renewable energy sector. Photovoltaic and wind power are our major areas of operations here. This year, we expect wind energy investment to pick up.
Are there differences in financing within the European Union?
In principle, from the EIB's point of view, there are no differences between the various EU countries when you look at the big picture. But of course, there can be individual forms of support in each country that make a difference. As far as Poland is concerned, it can be said that the conditions for a project in terms of permits and bureaucracy can be particularly challenging than in other countries. Another aspect is the attention that Poland pays to balancing the individual regions in the country.
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What is your assessment of the near and not so near future of photovoltaics in Poland?
Large new energy projects in the field of photovoltaics are essential for the energy transition in Poland. To achieve this, however, the expansion of the electricity grid must be pushed forward, because without it the energy transition will not succeed. Grid expansion is the basic prerequisite for a further generous expansion of renewable energies in the country. This will be followed by a transition from traditional energies to new energies. We at the EIB will support projects in both the private and public sectors. The proportion of money invested in renewable energies - and thus in photovoltaics - will increase in the future, in the short, medium and certainly also in the long term.
Link to EIB-Partners: https://www.eib.org/intermediarieslist/search/result?country=PL
A closer look at our interview guest:
Grzegorz Rabsztyn is a legal adviser and finance professional with extensive experience in structuring financial transactions for the State Treasury, local governments, banks, and corporate clients. He specializes in investment loans, securitization, risk sharing, and project finance. As Director of the European Investment Bank (EIB) Group in Poland, he actively promotes sustainable investments and economic growth, participating in key industry events to support regional development.
Interview by Manfred Gorgus
