Major Modernisation Programme for Poland’s Energy Networks
Energa Operator, a member of the ORLEN Group, has secured above PLN 7,5 billion from the National Recovery Plan to fund the largest power grid modernisation and digitalisation initiative in the company’s history, covering northern and central Poland. The project involves upgrading and constructing a total of 21,000 kilometres of power lines, which will enhance the country’s energy security and ultimately lower energy costs for end-users. A key component of this initiative is the planned integration of 9 GW of renewable energy sources, characterised by low variable production costs, along with energy storage facilities. The programme will also enable 200,000 new prosumers to connect to the grid. The total value of the programme, extending through 2035, amounts to PLN 40 billion.
Energa Operator’s investment plan includes integrating new renewable energy sources with energy storage systems, which will stabilise grid operation and reduce dependence on weather conditions. Under the ORLEN Group’s new strategy, energy storage facilities are expected to reach a total capacity of 1.4 GW. The modernisation programme will enhance the reliability of the grid for 3.5 million customers and enhance the utilisation of renewable energy, which is free from fossil fuel-related variable costs and regulatory emission charges.
‘We are launching a highly ambitious project that will significantly support Poland’s economic development and greatly strengthen the country’s energy security. Northern Poland is set to play an increasingly pivotal role in the energy transition. The region already hosts our onshore renewable energy sources, and it will soon be home to four offshore wind farms and energy storage facilities outlined in our strategy. This system will be supported by two CCGT plants currently under construction, along with two additional power plants planned in Gdańsk and Grudziądz. The network modernisation programme will address long-standing expectations from local residents and businesses by expanding access to clean and competitively priced energy. The project will be delivered by the Energa Group, which plays a key role in Poland’s energy transition,’ said Ireneusz Fąfara, President of the ORLEN Management Board.
The programme encompasses the construction of over 11,000 kilometres of new overhead power lines, 7,000 kilometres of cable lines, and the modernisation of nearly 10,000 kilometres of existing lines. Approximately 350,000 new electricity consumers and 1,600 public electric vehicle charging stations, including those along the A1 and S7 routes, are set to be connected to the grid. Additionally, the project includes the installation of approximately 1,000 advanced transformers and voltage control components to enhance the network’s capacity for distributing energy from renewable sources. The smart distribution networks will facilitate the expansion of electrified district heating systems.
The network expansion and modernisation will increase the investment appeal of economic zones in Pruszcz Gdański, Słupsk and Koszalin, preparing these areas to accommodate energy-intensive industries. It will also support the growth of seaports, including gas and fuel terminals, while advancing e-mobility and the comprehensive electrification of public transport.
‘Pomerania is becoming a crucial hub on Poland’s energy map and an increasingly attractive destination for major investors. Currently, over 50% of our energy production comes from renewable sources, and expanding our renewable energy portfolio remains a top priority. For this energy ecosystem to function effectively, a robust smart distribution network is essential. That is why Energa Operator is preparing for an unprecedented-scale modernisation and expansion of the grid. The funding obtained from the National Recovery Plan will cover 20% of the total cost of our 10-year development plan,’ stressed Sławomir Staszak, President of Energa Management Board.
Currently, Energa Operator’s grid connects 9.6 GW of renewable energy capacity, representing one-third of Poland’s total renewable capacity. As part of the investment programme, this capacity will increase to nearly 19 GW, while the number of prosumers is expected to grow from 300,000 to 500,000.
‘Energa Operator has long been the greenest distribution system operator in Poland. Today, approximately 60% of the electricity consumed in our service area is sourced from renewables, making us one of Europe’s leaders in energy transition among distributors. Thanks to advanced technological solutions, financed in part through the National Recovery Plan, we will provide investors, businesses, and residents with enhanced supply reliability and support the development of logistics hubs, data centres, high-speed rail infrastructure, and high-power electric vehicle charging stations,’ said Robert Świerzyński, President of the Energa Operator Management Board.
Energa Operator secured the National Recovery Plan funds through a low-interest loan from Bank Gospodarstwa Krajowego (BGK). Previously, ORLEN had obtained also PLN 3.5 billion in preferential financing from the European Investment Bank to support its grid modernisation programme.
‘Bank Gospodarstwa Krajowego is committed to supporting Poland’s socio-economic development, which is why we engage in projects crucial to the country’s growth. This loan agreement, although dedicated to transmission and distribution infrastructure development, has a far-reaching impact. It facilitates the expansion of distributed energy systems, including renewables and energy storage. Notably, the preferential financing for network infrastructure is instrumental in laying the foundation for further decarbonisation of Poland’s economy. These initiatives directly contribute to enhancing Poland’s energy security and driving its energy transition,’ said Mirosław Czekaj, President of the BGK Management Board.
Source: Orlen
