Polish development bank increases KPO loan for national grid operator by over PLN 800 mln

"BGK has increased its loan from the national recovery plan KPO for PSE by over PLN 800 million. Previously, PSE obtained PLN 10.8 billion from the KPO in the form of a loan and PLN 1.3 billion in non-repayable funds. These funds will be used to develop and modernise the transmission infrastructure," the bank wrote in the press release.

It added that the interest rate on the loan is 0.5 percent, and it must be repaid by December 2050. The funds will be disbursed in tranches on the basis of refinancing the expenses incurred for projects implemented in 2022-2038.

"Increasing the loan under the KPO for PSE's strategic investments is another step towards preparing the grid for the energy transition, including the connection of new energy sources and consumers. These are key measures that will strengthen Poland's energy security," said PSE's head Grzegorz Onichimowski, quoted in the BGK press release.

At the end of June, BGK and PSE signed an agreement for a loan of over PLN 10.8 billion (EUR 2.5 bln) for the construction of new power lines. The operator is to build 5,000 new high-voltage lines.

At the end of May, Poland's grid operator signed two agreements with the Ministry of Climate and Environment for over PLN 1.3 billion (EUR 304.7 mln) in non-repayable funding for PSE investments under the national recovery plan KPO.

PSE's investment plan provides for expenditure of approximately PLN 64 billion (EUR 15 bln) on the development of grid by 2034.

The Energy Support Fund, established jointly by BGK and the Ministry of Climate and Environment (MKiS) in September 2024 with a budget of PLN 70 billion (EUR 16.4 bln) from the KPO, grants preferential loans to support the construction and modernisation of power grids.

jz/ ao/