Tauron Polska Energia will be assisted in shifting from fossil fuels to recycled power. This was said on 2nd November by the European Bank for Construction and Development (EBCD). The EBCD has said that it has financed PLN 240 million, which is the same as €55.8 million to Tauron to help in its decarbonization program.
Grzegorz Zielinski, EBCD Central Europe regional director, said that these kinds of projects are essential for Poland’s green transition. He added that so far in Poland alone, the bank had funded 1.5 GW of renewable energy, and their partnership with Tauron will add more capacity to renewable energy sources. The EBCD said that this project would yield many benefits to the entire Poland economy. This is because it will be a great example of transforming coal-reliant areas, powering green investment, and creating employment opportunities. All these advantages will positively impact the people of Poland.
The EBCD said that coal-fired energy plants are Tauron’s major sources of electricity. However, the company has devoted to decrease carbon intensity by closing coal plants and increase recycled power usage. The bank added that the bond constitutes an essential statement of the new trajectory of the company. The bind’s returns will be used to build more Tauron solar photovoltaic installations to reach 300 MW. Tauron is also expected to increase 720 MW on onshore wind farms by 2025 and invest more in grid distribution. Tauron’s goal is to produce over 65% of its power from low and zero-emission sources. It also intends to decrease by half the emissions of greenhouse gases. If Tauron will not meet these two goals, the bond states that it will incur inflated financing costs.
To fulfil the transition initiative, Tauron has to close one of its largest coal-powered plants in Silesia. The EBCD said that financing the Tauron project is in line with the Bank’s Green Economy Transition (GET) approach. GET’s main objective is to help economies such that where they invest become low-carbon, green, and resilient. It will also take part in developing Poland’s local currency bond market when the listing of securities will occur on the Warsaw Stock Exchange. Since 1991, EBCD has been investing in Poland. So far, it has funded all sectors of the economy with a total of 439 projects. The total amount of financing is over €10.5 billion.