Santander Bank Polska and mBank signed the contract worth PLN 350m (EUR 79m) for financing a project of solar power plants developed by R.POWER, the leading Polish investor and developer of PV systems. The funding will be used to build 128 solar power plants with the total power of 121 MWp, which have won the last year RES auction.
Warsaw, 8th of June 2020
The transaction is the biggest funding for solar power projects provided in Poland so far - each bank holds a 50% share. All the power plants have won RES auctions and will sign 15-year contracts for difference providing them with a guaranteed level of electricity prices. The construction phase is to be completed within the next 18 months.
"This is another such a big initiative taken by Santander Bank Polska to support transformation of the Polish energy system. Last year we were the first lender in Poland to sign an ESG-linked credit agreement and today we have made the biggest transaction providing funding for PV power plants, which will contribute to the development of the Polish RES market. Prevention of the climate changes is one of the biggest challenges we face, therefore today we cannot speak of the future without taking brave and real actions which will reduce our negative impact on the environment," comments Juan de Porras, deputy president of the management board and head of the Corporate and Investment Banking Division in Santander Bank Polska and adds that one of the 10 global goals of Santander Group for the coming years is to facilitate mobilisation of EUR 120 billion for businesses in 2019–2025 to finance green energy projects, and EUR 220 billion in 2019–2030 for other green solutions to help tackle climate change.
Poland has supported RES projects for 5 years through its auction system. The auctions held in 2016-2019 provided support to over 2000 installations. The energy covered with the winning offers was worth over PLN 38bn in total. As a result of the auctions, almost 154 TWh of energy were sold.
"In terms of prices, solar energy has become competitive to the conventional sources of energy. In the coming years, photovoltaics and wind energy will be one of the driving forces of not only energy sector in Poland but also the entire post-covid economy. In R.POWER we are happy to be a part of that revolution. We hope that local regulations, like in France, Germany or Italy, will support smaller, dispersed installations, which will help Poland to build solar power companies operating globally," says Przemysław Pięta, the founder and CEO of R.POWER.
At the end of 2019, the domestic installed capacity of solar power plants was 1,3 GW to exceed 1,8 GW by the end of April 2020, i.e. it grew by 181.42% over a year. The national energy and climate plan envisages that the power in PV installations will grow to ca. 16 GW by 2040. Poland, as a EU member, is obligated to increase the RES share in the energy mix and although the Polish PV market is still relatively small, it has been gradually growing.
mBank has been gradually increasing its share in RES funding. It decided to provide PLN 500m for that purpose as early as in 2018. In summer 2019, mBank decided to increase that financing limit by 100% up to PLN 1bn and in March 2020 the lender increased it again - up to the record-high PLN 2bn.
"We are aware of our role in changing the world for better. The decision to support companies from the RES sector brings us double satisfaction - we not only help entrepreneurs, but also accelerate the green transformation," says Adam Pers, the deputy president of mBank and head of the corporate banking.
Santander Bank Polska Group is the second largest banking institution in Poland in terms of the value of assets. Santander Bank Polska offers financial solutions to personal customers, micro, small and medium enterprises, and domestic and international corporations. The Bank operates one of the biggest networks of branches and partner outlets in Poland as well as renders its services via electronic channels (including mobile banking). It is one of market leaders in terms of the use of modern technologies in banking, consistently developing its brand in line with its strategic goal to achieve the position of the best bank for customers. Loyalty and satisfaction of its customers are the priority for Santander Bank Polska. With this in mind, the Bank regularly implements innovative functionalities to help its customers take care of their personal finances and manage their business finances effectively. The Bank has been a member of the international Santander Group since 2011. The subsidiaries from the Santander Bank Polska Group offer investment funds, insurance, leasing, factoring and other products.
mBank has been the synonym of innovative banking solutions for years. We have been the first fully online bank in Poland and today we are setting the direction for mobile and online banking. We are one of the strongest and fastest growing financial brands in Poland, listed on the Warsaw Stock Exchange since 1992. The bank started operations in 1986 as Bank Rozwoju Eksportu (BRE Bank) and over the years, systematically built its competence to serve various groups of customers, continuously developing its offer. After rebranding in November 2013, when we replaced the name of the company and brands of BRE and MultiBank with the new name - mBank, our bank gained not only new image but also new values. Today we are a universal bank which specializes in serving all groups of customers. Under the logo of mBank, composed of various colours depending on the product proposition, we provide comprehensive services in retail, business, corporate and private banking areas.
R.Power is the biggest company in the Polish PV sector. In the recent years, the company has won solar power auctions for the total installed capacity of almost 300 MWp. In Poland alone, the company has been developing the portfolio of solar power plants with the installed capacity of over 1000 MWp. R.Power has also been active abroad, delivering PV projects in Portugal, Italy and Spain. The company operates along the entire value chain in the PV market - it develops power plant projects, builds power plants and provides O&M services through its subsidiary, NOMAD Electric Services.
Press Office of Santander Bank Polska