In a significant step towards accelerating Poland’s energy transition, a total of PLN 70 billion (EUR 16 billion) from the National Recovery Plan (KPO) will be provided in the form of preferential loans to support investments in the country’s energy sector. The agreement was signed by Minister Paulina Hennig-Kloska and Mirosław Czekaj, President of Bank Gospodarstwa Krajowego (BGK).

The fund will prioritise projects that contribute to decarbonising Poland’s economy by improving access to financing in key sectors crucial to the energy transition. Among the targeted areas are the modernisation of energy networks, the development of domestic renewable energy sources, and strengthening the country’s energy security.

“The Ministry of Climate and Environment (MKiŚ) has been securing financial resources from various sources to support the transition to a zero-emission energy system and a climate-neutral economy,” said Minister Hennig-Kloska during the agreement signing ceremony.

BGK has a longstanding history of successfully implementing European funds, and this latest agreement marks the sixth contract signed under the KPO. Czekaj expressed that BGK had already been entrusted with nearly 96% of the planned funds allocated for loan distribution under the recovery plan. He also emphasised the importance of this agreement, noting that the bank has already begun signing contracts with borrowers, meaning that the funds will soon enter the Polish economy.

Support for Key Energy Projects

The loans will focus on the following areas:

  • Construction and modernisation of power grids,
  • Development of renewable energy sources (RES),
  • Creation of energy storage facilities that integrate RES with the power grid,
  • Development of infrastructure for the production of biomethane, second-generation biofuels, and renewable hydrogen.

These investments aim to reduce Poland’s dependence on imported fossil fuels, improve the security of energy supplies for households and businesses, and accelerate the country’s energy transformation. The projects are also expected to have a positive environmental impact, contributing to cleaner air and reducing greenhouse gas emissions.

Economic Impact and Job Creation

In addition to its environmental benefits, the fund is expected to have a positive impact on Poland’s economy by creating new jobs in sectors related to modern energy technologies. The Instrument for Supporting the National Energy System is poised to foster growth in industries such as construction, technology, and research.

Application Process and Loan Details

The application process for investors planning to carry out projects in the area of power grid development is now open. Meanwhile, the application window for loans related to the broader energy transition is scheduled to open in the first quarter of 2025.

Loans will be available for both private and public entities, with a minimum loan amount set at PLN 200 million. These funds are designed to support projects with the greatest potential impact on Poland’s green energy transition. Households will indirectly benefit as the country’s energy system shifts towards more sustainable sources.

Transformative Benefits

The projects supported under this initiative are expected to:

  • Reduce greenhouse gas emissions and other pollutants, improving air quality and public health,
  • Contribute to the creation of jobs across multiple sectors,
  • Strengthen Poland’s energy independence and security by advancing renewable energy projects.

This unprecedented PLN 70 billion fund represents a monumental step towards building a greener, more resilient energy future for Poland, with lasting benefits for both the economy and the environment.

Source: Ministerstwo Klimatu i Środowiska