Poland: EIB supports efficiency increase and clean electricity generation

The European Investment Bank (EIB) provides two loans totalling PLN 510 million (some EUR 128 million) to Tauron Polska Energia SA to upgrade electricity generation in South of Poland:

• PLN 300 million (some EUR 76 million) to finance the construction and commissioning of state-of-the-art high-efficiency hard coal-fired combined heat and power (CHP) unit and associated infrastructure in Bielsko-Biala Power Plant
• PLN 210 million (approx. EUR 53 million) to support the construction and operation of a new biomass boiler at Jaworzno III Power Plant

These projects will contribute to a higher efficiency of electricity and heat generation, and an increased usage of renewable energy resources. They will have a beneficial impact on the environment by reducing harmful emissions, and help to meet growing electricity demand in the country as well as local heating needs.    

The loan of PLN 300 million will finance the replacement of an inefficient hard coal-fired CHP unit with a unit of a higher efficiency, with a capacity of 50 MWe (electrical) and 182 MWt (thermal). This will contribute to meeting heat and electricity demand at a competitive cost using a domestic source of energy. 

The utilisation of the modern state-of-the-art technology with high energy conversion efficiency will minimise the negative environmental impacts of the project. Compared to the unit it replaces, the new CHP plant will have a significantly higher efficiency, approximately 90% vs. 60% for the existing unit. The primary energy savings of the new unit have been estimated at over 25%.

The loan of PLN 210 million will support the construction and operation of a new biomass-fired boiler with a capacity of 50 MWe (electrical) and 45 MWt (that will replace one of the existing coal fired boilers) and the refurbishment of a steam turbine. The electricity will be generated purely on the basis of utilisation of renewable resources.

This is another cleaner energy project financed by the EIB in Poland. Last year the Bank provided co-financing in the area of renewable energy resources of EUR 44.5 million for the contraction of a wind farm in Margonin. In addition, the EIB supported with EUR 50 million the Green Investment Schemes, enabling Poland to invest the proceeds of the sale of carbon emission credits to Spain and UK in greenhouse gas mitigation activities.

Background

The EIB is the long-term lending bank of the European Union. Its main task is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. Besides supporting projects in the EU Member States, its lending activities also include financing investments in future Member States of the EU and EU partner countries.

The EIB raises substantial volumes of funds on the capital markets, which it lends on favourable terms to projects furthering EU policy objectives. It is the largest supranational borrower and its consistent AAA rating is underpinned by firm shareholder support, a strong capital base, excellent asset quality, conservative risk management and a sound funding strategy.