The European Bank for Reconstruction and Development (EBRD) said on Thursday it will provide a 40 million euro ($44 million) loan to Estonia’s Enefit Green to help the company develop solar energy in coal-reliant Poland.
Poland generates almost 80% of its energy from coal, but under European Union pressure to reduce carbon emissions the government has encouraged investment in solar panels.
Enefit Green was set up in 2016 by its parent Eesti Energia, Estonia’s state-run electricity provider, which started selling gas and power in Poland in 2017.
“A 40 million (zloty) loan from the EBRD to Enefit will provide long-term financing for (a) portfolio of up to 19.2 MW of newly completed small solar projects in Poland,” EBRD said in a statement.
Poland has increased its installed capacity to produce solar power by 175% in the past year to almost 1.3 gigawatt, as the government launched a number of incentives for individuals and smaller companies to invest in solar energy.
“The world is rightfully focused on the massive health and economic crisis caused by the Covid-19 pandemic. But climate change remains a fundamental challenge, especially in Poland with its historic reliance on coal for most of its electricity,” Harry Boyd-Carpenter, head of Energy EMEA at the EBRD, said in a statement.