The EBRD supports privatization process of the energy sector in Poland, as investment in the country's current outdated energy infrastructure is urgently needed.
Poland is a key energy market in central and eastern Europe thanks to its size, location and solid economic performance since the 1990s. But although the energy sector accounts for about 5 per cent of Poland’s GDP, the country’s ageing energy infrastructure is badly in need of investment.
Selling off ENEA
After previous unsuccessful attempts at privatisation, the Polish government worked in 2008 with the EBRD – an experienced investor in the country – to privatise the state-owned energy supplier ENEA.
ENEA is the leading power supplier in west and north-west Poland and the second-largest electricity supplier in the country, servicing 2.3 million customers or 14 per cent of the market. The company includes power generation, electricity distribution and electricity supply in its operations.
Investing the money
The funds raised through the shares sale will be invested in modernising ENEA’s electricity distribution network to cut energy losses. The money will also fund the construction of new power units at the Kozienice power plant in central Poland and will be invested in renewable energy projects.
A landmark deal
ENEA's initial public offering (IPO) in November 2008 was the first ever made by a state-owned Polish power company, making it a landmark in the privatisation of the Polish energy sector.
The EBRD bought a 2.5 per cent stake in the ENEA power group, and with the Bank’s participation, other investors were given confidence to enter the Polish energy market too.