On 29 July 2024, a significant step forward for Poland’s railway system was announced: the European Investment Bank (EIB) has granted a PLN 1 billion (over €230 million) loan to Polska Grupa Energetyczna (PGE), the country’s largest utility provider. The financing aims to modernise the electrical systems of the Polish railway network, paving the way for greener and faster services in the coming years. This ambitious project, scheduled for completion by 2028, marks the sixth EIB contract with PGE, reflecting the strong relationship between the two entities. PGE currently has credit lines with the EIB totalling €1.3 billion.
EIB Vice-President Teresa Czerwińska highlighted the importance of the project, saying: “We are a recognised partner for major infrastructure investments in Poland. Modernising railway lines improves the quality of life of residents and benefits businesses. It also promotes sustainable development, which is a key priority for the European Union.”
The essence of this project lies in its ability to reshape the energy landscape of rail transport in Poland. The funding will cover the construction of 43 new electrical substations and the modernization of 24 additional ones. These substations are crucial for converting alternating current (AC) to direct current (DC), a process essential for efficiently powering trains. In addition, the investment will support the development of high- and medium-voltage power lines, improving the overall electrical infrastructure needed to support the rail network.
Przemysław Jastrzębski, Vice-Chairman of the Board of Directors of PGE Group, stressed that the development of railway electrical systems is imperative to meet the specific requirements of the sector. He said: “Cooperation with the EIB gives us the tools we need to carry out these tasks. With the funds obtained, we will be able to invest in modern electrical infrastructure and develop innovative renewable energy projects. One of these projects includes the recovery and storage of energy generated by train braking, a significant innovation to achieve Poland’s greener energy goals.”
The investment project for the modernisation of electrical systems (MUZa) focuses primarily on improving railway safety, increasing the capacity of railway lines and improving train speeds, thereby reducing passenger travel times. This alignment with the European Union’s sustainable transport objectives will facilitate regional integration, alleviate road congestion and reduce energy consumption, air pollution and noise throughout Poland.
The EIB, as the European Union’s long-term lending institution, plays a central role in financing projects aligned with EU policy objectives. With a commitment to support €1 trillion of climate and environmental investments by 2030, the loan to PGE is a beacon of the EU’s ambition for a more sustainable future.
PGE is not only leading the charge with this project; it is also a crucial player in the wider context of the energy transition within the EU. The company’s strategic objective is to achieve climate neutrality by 2050, and initiatives such as the Green Rail programme aim to provide the rail transport sector with 100% clean energy from renewable sources. With a target of 85% of energy consumption coming from renewable sources by 2030, PGE is actively working on innovative solutions, including energy storage technologies.
In conclusion, the Polish railway modernisation initiative represents a vital investment in the country’s green infrastructure, which is aligned with the wider objectives of the European Union. This project not only aims to improve transport efficiency and safety, but also contributes to the EU’s Sustainable Development Goals, showing how regional infrastructure projects can foster economic growth while moving towards a greener planet.
Originally published in The European Times.
source link eu news
