EBRD helps finance Tauron Polska's green transition
The European Bank for Reconstruction and Development has invested PLN240 million (equivalent to €55.8 million) for 24% of a PLN1 billion local currency bond issued by Polish energy firm Tauron Polska Energia to support its decarbonisation strategy.
The proceeds of the bond will be used to expand Tauron’s portfolio of solar photovoltaic installations to up to 300MW and its portfolio of onshore wind farms by another 720MW by 2025, as well as to continue investments in the distribution grid to facilitate renewable energy generation. Tauron is moving from fossil fuels to renewable sources of energy, with part of the strategy including a gradual decommissioning of coal-fired units, an expansion of renewable energy sources and the reduction of CO2 emissions.
By 2030, the company aims to generate more than 65% of its energy from zero- and low-emission sources, while reducing greenhouse gas emissions by half. One innovative feature of the bond is that Tauron will face higher financing costs should it fail to meet these two objectives.
