EIB extends over €525 million to Poland’s top utility PGE for renewable energy production

This article is published in association with European Investment Bank.

• European Investment Bank and PGE Polska Grupa Energetyczna seal new financing agreement worth PLN 2.25 billion (over €525 million).
• EIB loan will support Poland’s energy transition, helping strengthen economic competitiveness and security.

The European Investment Bank (EIB) granted PLN 2.25 billion to Poland’s top utility PGE Polska Grupa Energetyczna (PGE) to support renewable energy production. The favourable loan will allow PGE to develop its network of photovoltaic installations throughout the country and to modernise an existing pumped-storage power plant.

The seventh agreement between the EIB and PGE will support the firm’s decarbonisation strategy by enabling planned investments in photovoltaic installations with a shared production capacity of nearly 730 MW, and the upgrade of a pumped-storage power plant (540 MW) in southern Poland. Provided under REPowerEU, the funding will support energy transition, as well as climate and environmental action in Poland, in line with the EIB’s role as the climate bank of the EU.

“Developing green energy is a key part of energy transition, and a precondition for security and economic competitiveness. This agreement between the EIB and PGE will increase the available renewable energy capacity, supporting strategic development needs of Poland and the European Union as a whole,” said EIB Vice-President Teresa Czerwińska.“Providing financing for climate projects and energy transition is one of the EIB’s top priorities. Last year, we invested €2.5 billion in this area in Poland alone, including €850 million in power grid projects. This year, we have already provided a leading contribution to the construction a major offshore wind farm, Baltica 2, and today are adding further PGE renewable energy projects to our portfolio.”

The planned investments will help reduce greenhouse gas emissions and air pollution related to power generation based on fossil fuels. They will mainly be located in regions of Poland where GDP per capita is below the EU average, thus strengthening territorial and economic cohesion.

The development of renewable energy sources like wind and solar requires increased grid flexibility, including storage capacity, which is made possible by pumped-storage hydropower plants. PGE’s Porąbka-Żar plant, the second-largest pumped-storage power plant in Poland, can store clean energy during periods of higher production or lower demand.

“Expanding renewables is a crucial element of Poland’s energy transition. We need to ensure stable supplies of clean energy to consumers in order to be able to effectively decarbonise the energy sector. The European Investment Bank’s support will allow PGE Group to increase the share of green energy in our mix,” said Dariusz Marzec, President of the Management Board of PGE Group.

 Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world. 

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security. The Group’s financing in Poland increased to €5.7 billion last year.
All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.   

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average. 

PGE Polska Grupa Energetyczna is the largest electric power company and supplier of electricity and heat in Poland. By combining its fuel and power generation resources with distribution networks, PGE guarantees safe and stable supply of electricity and heat to nearly 6 million customers. The Group’s generating units produce over 40 percent of electricity in Poland. In the coming years, PGE plans to continue developing renewable energy sources – especially based on wind and sun energy – as well as carrying out investments in energy storage, distribution and decarbonisation of the heat generation segment. The PGE Group investment plan covers Poland’s largest offshore wind projects, the most advanced of which – Baltica 2 with a capacity of 1.5 GW and planned commissioning date in 2027 – is being implemented in cooperation with Ørsted.