Polish Energy Group signs credit deal with EIB

After the project is completed, the combined installed capacity of the wind farms operated by PGE will increase by 18 percent to about 650 MW. Piotr Wittman/PAP

The Polish Energy Group (PGE) has signed a PLN 272.5 million (ca. EUR 64 million) credit deal with the European Investment Bank (EIB) with the purpose of financing the construction of new onshore wind farms on the Baltic coast in Poland, the company reported.

The new wind farms called Starza, Rybice and Karnice II (jointly forming the Klaster project) will have a combined installed capacity of up to 97 MW.

"The agreement provides for the co-financing of the onshore wind farms construction project to be implemented by PGE Energia Odnawialna – a company belonging to the PGE Group and dedicated to renewable sources of energy. The EIB will provide PGE with a dedicated credit line for a period of up to 17 years and for an amount that represents around 50 percent of the project cost. The funds acquired under the credit agreement will be allocated for the financing of projects which are 100 percent eligible under EIB's climate action objective (i.e. the three wind farms)," EIB wrote on its website.

"Our ambition is to reach a 25 percent share in this country's generation of power from renewable energy sources in 2030. We want to achieve this objective thanks to, among other things, the implementation of successive green investment projects. Our first 1 GW wind farm on the Baltic coast is to be completed by 2026, and our offshore project is to provide further capacity of 1.5 GW by 2030. That year is also the planned deadline for making available up to 2.5 GW from photovoltaics," Henryk Baranowski, President of the PGE Management Board, was quoted as saying.

Capital expenditures on the construction of the Klaster wind farm complex are estimated at PLN 545 million (approx. EUR 128.2 million). After the project is completed, the combined installed capacity of the wind farms operated by PGE will increase by 18 percent to about 650 MW.