Wedoany.com Report-Mar 21, Orlen has signed a third financing agreement with the European Investment Bank (EIB) to support the expansion of its electricity distribution network.

The new PLN1.7bn (€400m) agreement brings the total funding secured from the EIB to PLN3.5bn, making it the largest financial support package the bank has granted in Poland.

The funds will be invested by Energa Operator, an Orlen Group company, to enhance the security and efficiency of electricity supplies and increase the potential for integrating renewable energy sources.

“This record-high financing from the European Investment Bank is a strong vote of confidence in our growth strategy.

“We have an ambitious yet well-structured plan that will not only create value for our shareholders but also contribute to the broader economy.

“The EIB funding will be directed toward investments in our electricity distribution network, such as building new power lines and connecting new customers, including prosumers with their own renewable energy sources.

“These projects will be carried out by Energa Operator, which, thanks to the financing secured by ORLEN, is well-positioned to reinforce its leadership in Poland’s energy transition,” said Magdalena Bartos, Vice President of the Management Board and Chief Financial Officer at Orlen.

ORLEN can draw the funds in tranches over the next three years, with a repayment period of up to 15 years from disbursement.

The EIB loan plays a key role in supporting a PLN40bn investment programme announced by Energa Operator in 2025.

By 2035, the company aims to construct 11,000 kilometres of new power lines and 7000 kilometres of underground cables, while upgrading nearly 10,000 kilometres of existing infrastructure.

These investments will enable the connection of 350,000 new customers and integration of 9GW of renewable energy sources, along with energy storage facilities stabilising the power system.

In addition to the EIB funding, Energa Operator has also secured PLN7.5bn from the National Recovery Plan to help fund its investment programme.