S.8. Energy Efficiency


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EIB supports implementation of energy efficiency in two Polish cities

Tuesday, January 28, 2020

The European Investment Bank (EIB) is supporting two Polish cities, Lublin and Bydgoszcz, in implementing their energy efficiency programmes. These operations are part of the lending programme for the heating sector in Poland, which is guaranteed by EFSI. EIB loans totalling €46,4 million are expected to contribute to the upgrading of existing pipelines and substations and the connection of new houses in both Lublin and Bydgoszcz.

In Bydgoszcz, the loan will also finance the installation of new energy-efficient power generation. The EIB will finance up to 50% of the cost of the projects. This support is expected to result in energy savings, both by reducing energy losses and by improving air quality for the population. In the end, the projects are expected to benefit approximately 500,000 end-users.

In Bydgoszcz, the EIB loan will finance KPEC’s[1] five-year investment programme (2018-2022). The EIB will lend €23,2 million to the Bydgoszcz district heating operator to finance the modernisation of the heating network and part of its energy production system. Neighbouring municipalities[2] will also share in the benefits. Thanks to the EIB’s support for KPEC’s plans, a total of 55 km of old lines and 96 old substations will be upgraded in Bydgoszcz and 71 km of new lines and 416 new substations will be built. In addition, five high-efficiency gas-fired cogeneration engines will replace the existing coal-fired units, which is expected to result in primary energy savings of up to 25%. The result is expected to be a more efficient supply of heat to approximately 250,000 end-users, representing ca. 70% of the city’s population.

Lublin’s district heating operator[3] will also receive a  €23,2 million loan from the EIB to finance the modernisation of the city’s district heating network. A total of 33 km of old lines and 211 old substations will be modernised and 28 km of new lines and 355 new substations will be built, in particular to increase capacity by 59 MWth.

The EIB signed the contract with LPEC Lublin in October 2019 and with KPEC Bydgoszcz in December 2019. Most of the funds made available by the EIB are expected to be disbursed this year.

[1] Komunalne Przedsiębiorstwo Energetyki Cieplnej sp. z o.o. – KPEC

[2] Solec Kujawski, Szubin, Nakło nad Notecią and Koronowo

[3] Lubelskie Przedsiębiorstwo Energetyki Cieplnej SA – LPEC