EIB Grants PLN 2.25 Billion to Boost Poland’s Renewable Energy Push Through PGE

The financing is provided under the REPowerEU plan, the European Union’s initiative to reduce dependence on fossil fuels and accelerate the green transition.

In a significant stride toward achieving a sustainable energy future, the European Investment Bank (EIB) has granted a loan worth PLN 2.25 billion to Poland’s largest utility company, PGE Polska Grupa Energetyczna (PGE). This marks the seventh financial agreement between the EIB and PGE, reinforcing their ongoing collaboration aimed at accelerating the country’s energy transition and decarbonisation goals.

The newly secured funding will enable PGE to advance two major initiatives:

1. Expansion of Photovoltaic Installations: The utility plans to roll out a nationwide network of solar power systems with a combined production capacity of nearly 730 megawatts (MW). This large-scale deployment of photovoltaic (PV) systems will significantly expand Poland’s solar energy footprint and contribute to its climate goals.

2. Modernisation of Pumped-Storage Hydropower: PGE will also use part of the loan to upgrade its Porąbka-Żar pumped-storage power plant in southern Poland, which currently boasts a capacity of 540 MW. As the country’s second-largest plant of its kind, the modernised facility will enhance grid stability by storing excess renewable energy and releasing it during periods of high demand or low solar output.

Aligned with REPowerEU and Climate Goals

The financing is provided under the REPowerEU plan, the European Union’s initiative to reduce dependence on fossil fuels and accelerate the green transition. As the EU’s self-designated climate bank, the EIB is playing a vital role in funding climate-resilient infrastructure and clean energy projects across member states. In 2024 alone, the EIB invested €2.5 billion in Poland’s energy transformation, including €850 million dedicated to power grid modernization.

EIB Vice-President Teresa Czerwińska highlighted the strategic significance of the agreement, stating, “Developing green energy is a key part of the energy transition and a precondition for energy security and economic competitiveness. This agreement will not only support Poland’s green shift but also contribute to the broader strategic objectives of the EU.”

Supporting Regional Development and Economic Cohesion

Most of the PV projects and the upgraded hydropower facility will be situated in economically disadvantaged regions where GDP per capita remains below the EU average. This targeted investment approach is expected to strengthen regional development, enhance energy access, and promote economic cohesion across the country.

By prioritizing renewable energy development in less affluent areas, the EIB and PGE are ensuring that the benefits of the green transition are shared more equitably.

A Leap Toward Decarbonisation

PGE President Dariusz Marzec emphasized the critical role of renewable energy in Poland’s energy future, saying, “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 investment will contribute to a significant reduction in greenhouse gas emissions and air pollution traditionally associated with fossil-fuel-based power generation. Moreover, it reflects the increasing importance of flexible storage solutions such as pumped-storage hydropower, which will become ever more crucial as the share of variable renewables like wind and solar grows.

Broader Momentum Toward Sustainability

This latest move complements other renewable projects already underway in Poland, including the Baltica 2 offshore wind farm, to which the EIB has also made a substantial financial contribution. Collectively, these projects underscore a broader momentum toward sustainability and energy independence, not only for Poland but for the European Union at large.

As the country works to reshape its energy landscape, strategic alliances like that between PGE and the EIB offer a robust model for how public financial institutions can drive impactful, long-term change.