PGE REPOWEREU FRAMEWORK LOAN

Promoter – Financial Intermediary

PGE ENERGIA ODNAWIALNA SA

Location

• Poland

Description

The framework loan will finance the construction and operation of solar photovoltaic (PV) power plants across Poland and modernisation of one pumped storage hydropower plant.

Objectives

The aim is to finance part of the promoter's solar PV project pipeline as well as the modernisation of one of its existing pumped storage hydropower plants in Poland. The operation will contribute the achievement of the 2030 decarbonisation targets set out in the National Energy and Climate Plan (NECP) of Poland; it is therefore eligible under Article 309 point (c) common interest. A high proportion of the underlying projects are expected to be located in Less Developed Regions, thus are eligible under Article 309 point (a). The underlying projects are expected to be economically justified by generating clean and renewable electricity at a cost (on a levelised cost of energy basis) below the cost of fossil-fuel based alternatives in Poland.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply

Proposed EIB finance (Approximate amount)

PLN 2250 million (EUR 523 million)

Total cost (Approximate amount)

PLN 3474 million (EUR 808 million)

Environmental aspects

The solar PV schemes as well as rehabilitation works at the pumped storage hydro plant are expected to fall under Annex II of the environmental impact assessment (EIA) Directive 2011/92/EU as amended by Directive 2014/52/EU, requiring the competent authorities to determine whether an EIA is required. The EIB will assess the capacity and procedures of the promoter to ensure the schemes' compliance with the sector-relevant national and European environmental and biodiversity regulations. For large allocations, the authorization procedure and compliance with the relevant EU directives, specifically Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively), will be further assessed during the appraisal of the individual scheme, in particular the potential cumulative impacts assessment and the impacts on protected flora and fauna, including Natura 2000 sites. Given that China largely dominates the market of photovoltaic solar panels, and media reports about the risk of forced labour, the Bank will apply an enhanced due diligence on the topic, in line with the EIB's Environmental & Social Standards. The project is expected to contribute to Climate Action and Environmental Sustainability (CA&ES) objectives, in particular to climate change mitigation and pollution prevention and control.

Procurement

The promoter has to ensure that contracts for implementation of the project have been and will be tendered in accordance with the applicable EU procurement legislation, 2014/25/EU as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the EU Official Journal, as and where required.

Status

Approved - 28/08/2024