The EBRD has signed a loan agreement for a 220 MW wind farm in Poland, the first deal signed by the bank in the Polish wind sector for three years.
The EBRD is providing the Potewogo wind farm with a local currency loan of up to PLN209.1 million (€48 million). The deal represents “a turning point for the Polish energy sector”, the bank said.
The Potewogo wind farm in North-east Poland will be built and operated by Potewogo Mashav Sp. zoo., a special purpose company owned by the Israel Infrastructure Fund. It will cost PLN1.25 billion to build.
Renewable energy policy in Poland has been turbulent over the last five years, leading many developers to abandon the market. The EBRD said that a new renewable energy support mechanism had made it possible for it to support Potewogo.
The project represents a milestone as the first large scale onshore wind farm financed under the new support mechanism, EBRD said.
The main goal of the new support system is to allow Poland to increase the share of renewables in its energy mix. At present, the country remains dependent on coal for almost 80 per cent of its electricity generation which constitutes a serious challenge.
Harry Boyd-Carpenter, EBRD Director for Energy EMEA, said: “This is a milestone project which represents a turning point for the Polish energy sector.
“Renewables now are at the heart of the framework for the European energy sector. In this context, the Polish energy policy foresees a progressive shift away from coal to renewables. We are proud to support the Israeli Infrastructure Fund, who with this Project is demonstrating the re-opening for the Polish renewables.”