The European Bank for Reconstruction and Development (EBRD) has agreed to provide a PLN40m (€9m) loan for an expansion of Estonian energy company Enefit Green into Poland.
The loan is expected to offer long-term financing for portfolio of up to 19.2 MW of newly completed small solar projects in Poland.
In June last year, Enefit Green agreed to acquire all the solar projects, which secured subsidies in Polish renewable energy auctions held in 2016 and 2017.
The solar projects were owned by Solaque, built and operated by GEO Solar, both affiliates of GEO Group, operating in the Polish renewable energy market.
The facilities can reduce air pollution by cutting down annual CO2 emissions by up to 15,000 tonnes.
EBRD loan to support expansion of Polish solar market
The loan from EBRD is expected to help in the expansion of the Polish solar market, which is said to lag behind the country’s wind sector.
Despite an increase in the installed renewable capacity in Poland, the country remains dependent on coal for almost 80% of its electricity generation.
Enefit Green CEO Aavo Kärmas said: “While the Covid-19 pandemic and economic crisis rightly take priority in our hearts and minds, reliable power generation remains as important as ever. Enefit Green aspires to grow our renewable power generation capacity in all our home markets, with an entry to Poland in 2019 serving as an important landmark.
“We are proud to sign the first loan agreement with the EBRD and look forward to further cooperation in the future.”
Established in 2016, Enefit Green is wholly owned by Eesti Energia, which started its operations in the renewables sector in 2002.
Currently, the company is one of the leading renewables player in the Baltic countries with 447MW of installed electrical capacity and 83MW of thermal capacity.
