Enea secures over PLN 9 billion from Bank Gospodarstwa Krajowego for development of smart power grid infrastructure under KPO

Enea Group has signed a loan agreement with Bank Gospodarstwa Krajowego (BGK) in the amount of PLN 9.13 billion to finance the development of a modern electricity distribution network. The funding, provided under the National Recovery and Resilience Plan (KPO) will support the construction and modernization of the Group’s power infrastructure, with a focus on implementing smart grid technologies.

The financing will be provided to Enea by Bank Gospodarstwa Krajowego (BGK) as part of investments under G3.1.4, “Support for the Polish Power System (Energy Support Fund),” Component G (RePowerEU). The funds will be used to connect consumers and energy sources to the smart grid, expand and modernize the distribution network to align with next-generation smart grid standards, and invest in communication systems and ITC solutions that enhance grid operations. The investments will cover nearly the entire operating area of Enea Operator, which is Enea Group’s distribution subsidiary.

“I'm pleased to see that the energy transition, one of the key challenges Poland faces, is gaining momentum. As a result of this agreement, billions of zloty from the KPO funds will be invested into strengthening our energy security. I would like to congratulate to Enea on securing this funding. This is another example of how energy companies can raise funds and invest them in infrastructure and renewable energy sources. The market recognizes these efforts, as shown by Enea’s stock gaining approximately 140% since Q4 2023 and around 40% during the five months of this year,” said Jakub Jaworowski, Minister of State Assets.

“Today, additional billions from the KPO are directed into Poland’s energy sector – this time to the Enea Group. Most importantly, however, it’s the residents of northwestern Poland who will benefit – businesses and households. KPO-funded investments will enhance their energy security and create capacity for new renewable energy connections in the Polish economy. The Energy Support Fund, launched by the Ministry of Climate and Environment, totals PLN 70 billion to modernize Poland’s power system in order to ensure energy security, eliminate blackout risks, and enable connection of new energy sources,” said Paulina Hennig-Kloska, Minister of Climate and Environment.

“The signing of this agreement with BGK is a major milestone in transforming our distribution network. With these funds, we will accelerate the upgrades of our infrastructure, which will improve Poland’s energy security, facilitate connection of renewable energy sources, and allow energy consumers to actively participate in the market. We are implementing on our strategic goals outlined in the Enea Group Development Strategy until 2035, and supporting Poland’s energy transition,” said Grzegorz Kinelski, President of Enea. “I would like to thank the team within the Enea Group for their commitment shown during the preparation process and for preparing the extensive documentation needed to secure the funding from KPO,” added Grzegorz Kinelski.

“Energy transition is not optional – it is essential. BGK, as Poland’s development bank, supports investments that drive the energy transition, which is in the interest of the country and all its citizens. Thanks to EU funds under the National Reconstruction Plan, we have PLN 90 billion available for this purpose, including offshore wind farms. Today’s agreement is another step toward deploying those funds. Grid modernization will be a catalyst for further investment in renewable energy sources, including photovoltaic power and energy storage. A more secure energy system will benefit the entire economy,” said Mirosław Czekaj, President of BGK.  

Enea Operator will use the funds from the loan to finance the construction and modernization of several thousand kilometers of power lines. These investments will enable the connection of additional generation capacity, including new renewable energy sources, and make a meaningful contribution to achieving Poland’s climate goals – particularly by significantly reducing greenhouse gas emissions.

“Within this project, Enea Operator will undertake tasks that will not only address the sector’s current needs but also prepare it for future challenges, Such as continued growth of distributed energy generation, electromobility, and rapidly changing energy consumption patterns,” said Marek Szymankiewicz, President of Enea Operator.

“A modern power grid, resilient to disruptions and adapting to sudden shifts in supply and demand, is essential not just for energy security, but for national security in general. Recent blackouts in Spain and the Balkans show what is at stake. Without adequate infrastructure, we cannot harness the benefits of modern technologies. Upgrading the grid is also key to combating energy poverty,” emphasized Prof. Marta Postuła, First Vice President of BGK.

The loan will be disbursed in tranches between 2025 and 2036, with principal repayments scheduled from 2034 to 2050. The interest rate on the loan is 0.5% per annum. Over the 2035 planning horizon, Enea Group intends to invest approximately PLN 41 billion in its distribution segment, which will significantly strengthen the resilience of the Polish power system and facilitate further growth in renewable energy sources.

The Energy Support Fund (FWE) is a key financial instrument under the National Recovery Plan (KPO) managed by Bank Gospodarstwa Krajowego. Its purpose is to drive Poland’s energy transition by providing preferential loans for strategic investments in the power sector. The aim of the FWE is to accelerate grid modernization, support the integration of renewable energy sources, and enhance the country’s overall energy security.