The EBRD support comes at a time when raising capital is increasingly difficult and the need to accelerate the development of renewable energy is greater than ever, due to the global energy security concerns. It will be the EBRD’s first bond investment into a renewable developer at holding company level in Poland, supplementing traditional project financing at the asset level.
The transaction supports a faster roll-out of solar PV projects in Poland, as well as the company’s ambitions to become a fully integrated regional player in the renewables market and the development of local capital markets. This EBRD funding will ensure that an additional 96 MW of solar PV achieves financial close and starts implementation in 2022. This translates into 100 GWh of electricity annually, contributing to 72 thousand tonnes of carbon dioxide savings a year.
The drive towards net zero carbon emissions by 2050 is a dominant theme in the European energy sector. Decarbonisation goals imply increasing electrification of economies and industry, which require massive investment in renewables in the coming decade.
In the past year, energy prices have increased dramatically, driven both by short supply of hydrocarbons and increased electricity demand and, since February. The focus is turning to renewables not only to achieve the net zero target, but to provide an immediate solution to the growing energy security crisis. Solar will play a critical role in this transition.
Promoting the low carbon economy is a central focus of the EBRD’s work in Poland, along with enhancing the private sector’s role in the economy and assisting in the development of a sustainable financial sector and capital markets. To date, the EBRD has invested €3.44 billion in 476 projects in Poland.