EBRD Grants €48 Mn Loan For 220 MW Wind Farm in Poland

In its first project in renewable energy in Poland in over three years, the European Bank for Reconstruction and Development (EBRD) has announced that it is supporting the 220 MW Potegowo wind farm with a local currency loan of up to PLN 209.1 million (€48 million).

The plant in north-eastern Poland will be constructed and operated by Potegowo Mashav, a special purpose vehicle incorporated in Poland and majority-owned by the Israel Infrastructure Fund, for a total cost of PLN 1.25 billion (€290 million).

The wind farm is expected to make a major contribution to reducing air pollution by replacing 480,000 tonnes of CO2 emissions annually. The EBRD’s return to financing renewables in Poland has become possible thanks to a new renewable support mechanism, the implementation of which the Bank was able to support with technical assistance and policy engagement. The project represents a milestone as the first large scale onshore wind farm financed under the new support mechanism.

The main goal of the new support system is to allow Poland to increase the share of renewables in its energy mix. At present, the country remains dependent on coal for almost 80 percent of its electricity generation which constitutes a serious challenge. All EU member countries are committed to source at least 32 percent of their final energy consumption from renewable sources by 2030.

Harry Boyd-Carpenter, EBRD Director for Energy EMEA, said, “This is a milestone project which represents a turning point for the Polish energy sector. Three major developments have made this possible. Renewables now is at the heart of the framework for the European energy sector. In this context, the Polish energy policy foresees a progressive shift away from coal to renewables.”

“And, finally, we are in an era where renewable energy is not just a means to avoid carbon emissions; it is a source of power which does not damage air quality, does not require energy imports and which is highly affordable. We are proud to support the Israeli Infrastructure Fund, who with this Project is demonstrating the re-opening for the Polish renewables.”
Ayush Verma