EIB extends loan worth more than EUR 230 million to PGE to modernise Polish railway’s power system.
Polska Grupa Energetyczna (PGE), Poland’s top utility company, received a PLN 1 billion loan from the European Investment Bank (EIB) to upgrade power systems for the country’s railway network. The 18-year credit marks the EIB’s sixth contract with the group, which currently benefits from credit lines at the bank topping EUR 1.3 billion.
“We are a proven partner for large infrastructure investments in Poland,” said EIB Vice-President Teresa Czerwińska. “The modernisation of railway lines enhances the quality of life for residents and is beneficial for business. It is also conducive to sustainable development, which is a key priority for the European Union.”
The contract covers the construction of 43 electrical substations, which convert electrical energy between alternating current (AC) to direct current (DC) needed to power trains in Poland, as well as the modernisation of 24 substations. In addition, the accord includes the construction of high-voltage and medium-voltage power lines, as well as accompanying infrastructure for efficient power supply to the domestic rail network.
“Both the specific nature of electricity supply to the railway sector and the growing demands of rail carriers require us to take very specific actions that will guarantee the adequate capacity and efficiency of railway power systems,” said PGE Group Management Board Vice-President Przemysław Jastrzębski, who is responsible for finance.
“Cooperation with the EIB gives us the tools we need to carry out those tasks. Thanks to the obtained funds, we will be able to invest in modern power infrastructure and develop innovative renewable energy projects – such as recuperating and storing energy from breaking trains – that accelerate the transformation of the Polish power system.”
PGE Energetyka Kolejowa’s Modernisation of Power Systems (MUZa) investment project increases railway safety, the capacity of rail lines and the speed of trains, reducing journey times.
The project is in line with the EU’s goal of promoting sustainable transport. Better rail connections will accelerate regional convergence, ease road-traffic congestion and reduce energy consumption, air pollution and noise in Poland.
The PGE Group is the largest domestic power company in Poland. The group’s strategic goal is to achieve climate neutrality by 2050.
Accordingly, PGE Energetyka Kolejowa is also involved in developing initiatives aimed at reducing CO2 emissions on railways. One such programme is Green Rail, which aims to supply the rail transport sector with fully clean energy from renewable sources. The next milestone is to achieve an 85% share of renewable energy in the total volume of energy used on the railways in 2030. The company also invests in innovative solutions such as energy storage.
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