EBRD Loan 212 Million Zloty To Build Poland's Largest Solar Photovoltaic Power Plant in Zwartowo
Apr 26, 2022
The European Bank for Reconstruction and Development (EBRD) loaned 212 million zlotys (equivalent to 46 million euros) for the construction and operation of Zwartowo, Poland's largest solar photovoltaic power station, which is an important step in strengthening Poland's energy security and accelerating its energy security.
The Zwartowo plant will have a total capacity of up to 285.6 MWp and is expected to reduce CO2 emissions by at least 138,000 tonnes per year.
The EBRD financing, in the form of a senior secured loan and a debt service reserve facility, will be part of a larger package co-financed by commercial banks PKO BP SA and Pekao SA.
The project company is Stigma Sp. z oo, a special purpose company incorporated in Poland and indirectly majority owned by Solarnet Investment GmbH. Solarnet is the investment arm of Goldbeck Solar Group, an existing client of the European Bank for Reconstruction and Development.
Currently, more than 70% of power generation in Poland uses coal, the most polluting fossil fuel. It faces one of the most significant energy transition challenges of any EBRD operating country as it struggles to align with the Paris Agreement's goal of limiting global warming to no more than 1.5 degrees Celsius.
Maintaining the momentum of its green energy transition is crucial for Poland as the EU's ambitions grow. In December 2020, the European Council agreed to increase the group-wide emissions reduction target from 40% to 55%.
An ambitious renewable energy plan, supported by a policy dialogue with the European Bank for Reconstruction and Development, enables Poland to hold its first large-scale renewable energy auction by the end of 2018 and achieve final energy consumption of renewable energy by the end of 2019 of 12.2%. Despite the ensuing economic headwinds amid the global coronavirus pandemic, Poland is targeting a daunting 23 percent target by 2030.
The European Bank for Reconstruction and Development, a leader in climate finance on three continents, aims to align all of its operations with the goals of the Paris Agreement by 2023 and make more than half of its investments green by 2025.
The EBRD works extensively in Poland, having invested EUR 11.4 billion in 469 projects. Poland, also one of Ukraine's neighbors, is eligible for the 2 billion-euro Ukrainian War Recovery Plan approved by the EBRD's board on March 9.
