EBRD co-finances expansion of PEPSA wind farms in Poland

By Axel  Reiserer

The EBRD is providing a long-term loan of up to PLN 292 million (€69.5 million equivalent) to a group of three special-purpose companies fully owned by Polish Energy Partners S.A. (PEPSA) for the construction of a portfolio of three wind farms in Poland. PEPSA is a leading Polish renewable energy developer and producer, listed on the Warsaw Stock Exchange and majority-owned by Kulczyk Investments S.A.

The EBRD finance will support the construction and operation of three wind farms in northern and north-eastern Poland - Gawłowice with a capacity of 41.4 MW, Rajgród with 25.3 MW and Skurpie with 36.8 MW - with a total capacity of 103.5MW. The expansion of wind energy will reduce CO2 emissions in Poland by approximately 179,000 tonnes per annum.

Total investment in the project is estimated to be PLN 835 million (€198.8 million). This includes an EBRD commitment of PLN 242.7 million for phase I (creating a capacity of 66.7MW) which can, with the Bank’s consent, be increased by an additional PLN 49.3 million to be used for the third wind farm (phase II). The first phase of the project should be completed by the end of 2014 and the second by September 2016.

Lucyna Stańczak, EBRD Director for Poland, said: “Today’s signing represents a milestone for the financing of renewable energy investments in Poland. Given the challenging regulatory and financial environment in the sector the loan is expected to give a boost to PEPSA’s ambitious initiatives. The EBRD is proud to be associated with this effort to increase renewable energy production, which we consider very important for Poland to meet the EU target for the renewable energy share in the country’s energy mix.

Michał Kozłowski, Vice President of PEPSA, added: “We are delighted to have the opportunity to add further projects to our growing portfolio of wind farms, which would not be possible without the EBRD’s involvement. This is a significant milestone in our wind farm investment programme.”

The energy sector is one of the EBRD’s top priorities in Poland. The loan to PEPSA reconfirms the Bank’s commitment to the decarbonisation of the Polish economy.

To date the Bank has invested more than €6.3 billion in all sectors of the Polish economy with a combined project value exceeding €33 billion. The Bank continues to support the renewable energy sector with over €1.1 billion invested in nearly 50 projects across its region.