Energa receives up to $1.92 billion loan for power grid investment

Polish utility Energa announced on Wednesday that it had signed a loan agreement with Poland's Development Bank BGK for up to 7,66 billion zlotys (1,92 billion dollars) to invest in its power distribution network.

Polish oil refiner Orlen owns Energa and plans to develop four offshore wind farm as part of its investment strategy up to 380 billion Zlotys in 2035.

The loan is for 25 years and has an interest rate fixed at 0.5% annually. Funds are provided under the European Union Recovery Facility, which gives Poland nearly 60 billion euro in grants and low-interest loans.

Orlen has plans to invest 40 billion Zlotys by 2035 in its distribution network. Energa stated that the investment plans include building 11,000 km of new transmission lines, and upgrading 10,000 km of existing ones.

Energa's operations in northern Poland will require major grid upgrades as the new power sources are located there. This includes a doubled renewable capacity of nearly 19 gigawatts.

(source: Reuters)