Poland receives 1st tranche of EU energy funding

Poland has received a first payment of 5 billion euros from the REPowerEU plan, the country's Minister for Funds and Regional Policy Katarzyna Pelczynska-Nalecz announced on Thursday, reported Xinhua.

The funding comes as part of Poland's National Reconstruction Plan (KPO), for which it is due to receive a total of 59.8 billion euros from the European Union (EU).

The minister wrote on social media platform X that the first tranche of funding for the KPO is "money for cheap green energy for Polish citizens."

Polish initiatives covered by this funding include support for electricity transmission networks, the development of renewable energy sources, energy storage solutions, low and zero-emission buses, and the construction of offshore wind farms, according to a report by Polish Radio.

The larger tranche of funding for the KPO was held up due to a rule-of-law dispute between Brussels and Poland's former government. The new pro-EU Polish government, which took office in mid-December, has vowed to mend relations with Brussels.

Poland's KPO consists of 56 investments and 55 reforms. The EU funding for the KPO includes 25.28 billion euros in subsidies and 34.54 billion euros in preferential loans. Most of these funds will be invested in the form of financial instruments, which will allow for the implementation of projects after 2026.

The REPowerEU plan, proposed by the European Commission in 2022, aims to accelerate the deployment of renewables and to increase investment in energy efficiency throughout the EU.