Bank Gospodarstwa Krajowego has opened the gates to a green future
Poland is entering a new era of energy transformation. Bank Gospodarstwa Krajowego is running an energy transformation loan program worth over 7 billion zloty, financed from the National Recovery and Resilience Plan funds. This is a historic opportunity for enterprises that want to be part of the green revolution while benefiting from preferential financing conditions.
Key program parameters
The program features exceptionally attractive financing conditions:
The minimum loan amount is 200 million zloty, meaning the program is targeted at large projects with significant impact on the country’s energy transformation. The interest rate is set at a preferential level – not less than the NBP reference rate minus 200 basis points, but not lower than 1 percent. This means real savings for investors compared to commercial loans.
The lending period can be up to 15 years, but cannot extend beyond 2053. Borrowers also receive a grace period – generally no longer than one year from project completion. The support amount can reach up to 90 percent of eligible expenses, meaning the required own contribution is a minimum of 10 percent.
Wide spectrum of investment opportunities
The program covers key areas of energy transformation. Entrepreneurs can finance the construction and modernization of heating and gas networks for decarbonized gases. Particularly important is support for building renewable energy sources along with installations for renewable hydrogen production and energy storage in the electricity and heating sectors.
The program also finances the construction of electrical energy storage facilities, which are crucial for integrating RES into the electrical system. Entrepreneurs can receive support for increasing energy efficiency of their companies and buildings along with RES installation and energy storage systems.
Additionally, the program covers installations that reduce emissions and energy consumption of enterprises, as well as construction of transport infrastructure for biomethane production, second-generation biofuels, and renewable hydrogen.
Participation conditions and requirements
The program can be used by enterprises planning to implement qualifying investments and companies that are direct owners or co-owners exercising direct control and holding more than 50 percent of shares or stakes in the entity implementing the project.
All projects must meet rigorous environmental requirements. They must comply with relevant EU and national environmental protection regulations and with the Do No Significant Harm (DNSH) principle. This principle means that projects cannot cause significant environmental harm.
Simplified application process
BGK has launched a modern online tool for submitting applications, which ensures security and facilitates the application process. The recruitment is open and continuous, meaning entrepreneurs can submit applications at their convenience.
Loan funds are available until 2029 with the possibility of project settlement until 2031. The program finances projects that have not started or have started, if their implementation did not occur before February 1, 2022.
Impact on the Polish economy
The energy transformation loan program is not only financial support for individual enterprises, but a strategic investment in the future of the Polish economy. Implementation of projects financed from this program will accelerate the decarbonization process through gradual phase-out of fossil fuels and their replacement with zero-emission and renewable energy sources.
Additionally, the program supports improvement of energy efficiency and development of green industry, including through increasing the role of green innovations. This means not only environmental benefits, but also increased competitiveness of Polish enterprises in international markets.
Development perspectives
The program fits into the broader European Union strategy regarding energy transformation and achieving climate neutrality. For Polish enterprises, this means the opportunity to benefit from preferential financing of projects that will be crucial for their future development and competitiveness.
The total pool of funds amounting to over 7 billion zloty shows the scale of state commitment to energy transformation. This is a signal to the market that investments in RES and energy efficiency will be supported long-term.
The energy transformation loan program implemented by Bank Gospodarstwa Krajowego constitutes a key element of Poland’s strategy to achieve climate neutrality. Detailed information about conditions and the application process is available on the BGK website.
Source: www.bgk.pl
