Orlen will spend PLN 3.5 billion on modernization of the energy distribution network. This is intended to increase the security and efficiency of electricity supplies in northern and central Poland. Financing for the program will be provided by the European Investment Bank, which has just granted the company a loan of PLN 3.5 billion for the strategic development of the network, including connections for renewable energy sources, modernization and investment in a smart grid.
Orlen received a billion-dollar loan
Orlen emphasizes that “EIB financing, on preferential terms compared to commercial banks, will significantly accelerate the implementation of plans in this area (modernization of the energy distribution network – ed.). The value of the first contract signed was PLN 900 million. The program will be implemented by Energa Operator.” .
The program assumes, first of all, connection new ones recipients, including new RES sources, crucial from the point of view of the dynamic growth of renewable sources in Poland. The investments will also include the modernization of the distribution network, the construction and modernization of distribution assets and the development of an intelligent network, including, above all, smart metering systems, in the installation of which the company is a national leader.
According to the agreement, the funds can be used in tranches within 3 years from the date of signing the agreement. However, the liabilities will be repaid within a maximum of 15 years from their initiation.
PLN 3.5 billion is a drop in the ocean of needs. Much more is needed to modernize the distribution network
According to Orlen in a press release, renewable sources connected to the Energa Operator network already have approx. 9.2 GW power. This year alone, by the end of the third quarter, nearly 21.5 thousand were connected. new renewable energy installations (including prosumer micro-installations) with a total capacity of 801 MW. As you can see, new capacity is being added to the network all the time. However, the Polish energy system has a problem with their quantity.
– We already have a lot of complaints reported to distribution network operators that the system turns off their installations during energy peaks. This is due to the fact that our power grid has a limited capacity. If we continued thoughtlessly in the prosumer development model, we could actually harm the prosumers themselves. These are the laws of physics, you can't stop it – said the then Deputy Minister of Climate, Ireneusz Zyska, for Gazeta.pl in 2021.
– In the face of aggression Russia to Ukraine it is necessary to take action on thing strengthening security and energy sovereignty. Renewable energy sources play a key role in this process, therefore it is extremely important to ensure conditions for their further sustainable development to ensure the safe operation of the power grid, said Zyska.
The head of the Energy Regulatory Office provided the estimated amount that will need to be spent on the modernization of distribution networks. – We face the need to complete investments estimated at nearly PLN 100 billion – said Rafał Gawin.