Polish utility, Polska Grupa Energetyczna (PGE), has concluded a loan agreement with the European Investment Bank (EIB) for up to PLN 272.5m ($71m).

The loan will finance investment outlays for the construction of new onshore wind farms located on the coast of the Baltic Sea in Poland. The investment includes three wind farms; Starza, Rybice and Karnice II, with a total installed capacity of up to 97 MW.

The loan granted by the EIB is one of the elements of obtaining new financing sources for the investment program of the PGE Capital Group. The contract includes co-financing of an onshore wind farm project implemented by PGE Energia Renewable – a company responsible for the development of renewable energy sources within the PGE Group.

PGE has emphasized its commitment to changing the energy mix, ensuring energy transformation and achieving zero-emissions status.

PGE aims to achieve 25 per cent participation in domestic electricity production from renewable sources by 2030. Their first wind farm in the Baltic Sea with a capacity of 1 GW is to be built by 2026, and by 2030 PGE intends to launch another 1.5 GW of capacity as part of their maritime project.

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“We welcome PGE’s investment plans and its commitment to the development of a more sustainable generation portfolio through a dedicated investment program in renewable energy sources. The planned activities will contribute to the gradual decarbonization of the Polish energy sector. The transformation will undoubtedly bring great benefits not only to the Polish economy, but thanks to a cleaner environment, its citizens as well,” says Lilyana Pavlova, EIB’s vice president, supervising operations in Poland and in countries covered by cohesion policy.

Commercial operation of the farms is expected before the end of the first half of 2020.

The implementation of the investment will increase the total installed capacity of PGE wind farms by 18 per cent to nearly 650 MW and will strengthen the PGE Group as the national leader in renewable energy production.

“Green investments in our portfolio bring Poland closer to gradually achieving climate neutrality. Each such project is an individual investment challenge, but also the financial engineering behind it, which leads our Group to change the fuel mix. In our long-term efforts to gradually diversify and decarbonize our production portfolio, we know that we can rely on the European Investment Bank – a reliable partner supporting our energy transformation projects,” says Emil Wojtowicz, vice president of finance at PGE Polska Grupa Energetyczna .

The project will contribute to the diversification of the Polish energy mix and achieve the EU renewable energy target of 32 per cent until 2030