The sustainable energy transition is literally a hot topic for Poland. Burning coal is still one of the major fuel sources for its electricity production. Currently, only about 17% of Polish electricity comes from renewable sources, a value among the lowest in the EU. Still, the country has made notable progress in its energy transition in recent years. It has one of the fastest-growing markets for distributed solar PVs in Europe, and it has developed a strong program to drive offshore wind deployment.
Client:
TAURON Polska Energia, www.tauron.pl
One of the leading polish energy companies, dedicated to a green turn of its energy mix within the next years.
Product:
PLN 500mn / € 106mn bilateral Taxonomy-aligned Green Loan.
Use of funds:
Long-term green corporate financing of Tauron to support investment projects related strictly to the green transition of TAURON
TAURON’s green transition
TAURON Polska Energia is one of the leading companies in the Polish integrated utilities space, with activities spanning from power generation, distribution as well as providing power & gas for retail clients. The green transition of Tauron, which the company has been implementing for almost three years, envisages significant investments in renewable energy generation. A total of 1,600 MW of installed renewables capacity is planned until 2025.
“Investments in our renewable generation capacity are priority tasks for the coming decade. These funds will allow us to strengthen our financial stability and to rapidly implement our strategic goals,” says Krzysztof Surma, Vice President of TAURON Polska Energia for Finance, and continues: "The terms of the agreement represent also a clear signal for investors that the Group is steadfastly implementing its green turn, placing emphasis primarily upon the transition of its generation mix towards renewable energy sources.”
A strong partner for the energy transition
Erste Group acted as green structuring arranger and sole lender for this very first fully taxonomy-aligned financing in the energy sector in Poland. The proceeds of the financing support the company’s adaptations of its generation mix. A key focus will be investments in wind farms and industrial photovoltaic installations, as well as projects that improve energy efficiency, including the modernization of street lighting using LED lamps, the implementation of smart metering, and investments in clean transportation - such as EV charging stations.
“The energy industry is at a crossroads. Companies in this sector need to rethink their strategy, build new capabilities, and transform their business. Erste Group goes beyond simply offering green financing, bringing in addition depth of knowledge and strong ties with our clients, all of which put us in a position to support our clients’ transition to cleaner and more sustainable ways of doing business,” highlights Radu-Florin Moldovan, Industry Lead for Energy and Utilities.