The European Bank of Reconstruction and Development (EBRD) is supporting the development of the 220MW Potegowo wind farm in Poland with a loan of PLN209m (€48m).
Potegowo, which is the first renewables project the bank has supported in the country in three years, is situated in north-east Poland.
The plant is being built and operated by Potegowo Mashav, a special purpose vehicle incorporated in Poland and majority-owned by the Israel Infrastructure Fund, for a total cost of €290m.
The wind farm is expected to reduce carbon dioxide emissions by 480,000 tonnes annually.
The EBRD’s return to financing renewables in Poland has become possible thanks to a new renewable support mechanism, the implementation of which the bank was able to support with technical assistance and policy engagement.
The project represents a milestone as the first large scale onshore wind farm financed under the new support mechanism.
The main goal of the new support system is to allow Poland to increase the share of renewables in its energy mix.
At present, the country remains dependent on coal for almost 80% of its electricity generation which constitutes a serious challenge to meet EU clean power targets.
All EU member countries are committed to source at least 32% of their final energy consumption from renewable sources by 2030.
EBRD director for energy in the EMEA region Harry Boyd-Carpenter said: “Renewables now are at the heart of the framework for the European energy sector.
“In this context, the Polish energy policy foresees a progressive shift away from coal to renewables.
“And, finally, we are in an era where renewable energy is not just a means to avoid carbon emissions; it is a source of power which does not damage air quality, does not require energy imports and which is highly affordable.”
Mashav Energia chief executive Tomer Eizenberg said: “We are thrilled to have the opportunity to build one of the largest wind farms in Poland, which would not have been possible without EBRD’s leadership.
The company won the Polish government tender in November 2018 for the supply of wind generated energy to the Polish electricity network.
Israel Infrastructure Fund managing partner Yaron Kestenbaum said: “We applaud the professionalism, persistance and patience of the management and team at Mashav Energia, during the recent years of uncertainty in the Polish renewable energies market.
“We are proud to be a major and direct contributor to reducing air pollution.”