In Poland, energy company Tauron Polska Energia has secured €55.8 million ($65.1 million) in funding from the European Bank for Reconstruction and Development (EBRD) to implement its grid modernization and decarbonisation strategy.
The EBRD investment covers 24% of a PLN 1 billion ($260.3 million) local currency bond issued by Tauron to support its decarbonisation strategy.
Tauron will use the investment to support its “just transition” strategy and address the social impact of accelerating the green transition.
The strategy includes a gradual decommissioning of coal-fired units, an expansion of renewable energy sources and the reduction of CO2 emissions.
The utility will use the bond to expand solar photovoltaic installations to up to 300MW and to develop up to 720MW of new onshore wind energy capacity by 2025.
Tauron will also modernize its grid to enable integration with distributed resources.
By 2030, the company aims to generate more than 65% of its energy from zero- and low-emission sources, while reducing greenhouse gas emissions by half.
Grzegorz Zieliński, EBRD regional director for central Europe and head of Poland, said: “Projects such as this are crucial for Poland’s green transition. We have financed more than 1.5 GW of renewable capacity in Poland to date and we are proud to partner with Tauron in pioneering its shift from coal to renewable energy sources. This project is an example of how coal-reliant regions can be transformed while providing new employment opportunities and driving green investment.”
In line with the EBRD’s just transition initiative, the company will develop a programme to address the potential social impact of closing its coal-powered plants in Silesia, one of Poland’s most carbon-dependent regions.
The EBRD’s investment is aligned with the Bank’s Green Economy Transition (GET) approach, its strategy for helping the economies where it invests become green, low carbon and resilient. It will also contribute to the development of the local currency bond market in Poland as the securities will be listed on the Warsaw Stock Exchange.