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Solar Energy

“We are navigating a turbulent market”

March 21, 2025 ryansheehanrts

Menlo Electric has grown rapidly in global solar and storage distribution. Can you share more about the company’s history?

Menlo Electric was founded in late 2020, initially as a subsidiary of an installation company. From the very beginning, our goal was to build an international distribution business, operating across multiple markets. This strategy was designed to mitigate the impact of fluctuations in demand within any single market, ensuring long-term stability and growth.

Also interesting: European Energy puts its largest solar park in Poland into operation to date.

Did the strategy work?

It allowed us to expand rapidly, despite a market slowdown in Poland after net metering was phased out in Q1 2022. In 2021, we sold nearly 200 MW of solar components. The following year, our sales tripled to 600 MW, and in 2023, we reached 900 MW. Last year, we surpassed 1.3 GW of components sold. To put it in financial terms: in 2021, our revenue stood at €50 million, growing to €150 million in 2022. Over the past two years, despite the drop in component prices, our revenues have remained stable as we continued to grow in volumes.

What are Menlo’s main markets?

We are primarily active in Europe, the Middle East, and Southern Africa, with an emerging presence in the United States.

How have you experienced the sharp decline in component prices in recent years?

Module prices did decline at an unprecedented pace, at times falling by 30% per month, as seen in mid-2023 and again towards the end of 2024. Battery and inverter prices also plummeted. According to Bloomberg, battery prices declined in 2023–2024 at the fastest rate since 2017. At the same time, the European residential solar market contracted significantly. According to data from SolarPower Europe, residential installations in Europe shrunk by 30% in volume. When factoring in the impact of falling component prices, the market declined by more than 50% in value.

Also interesting: R.Power Poland: Pure Energy for Posh Fashion

Can you share a concrete example of the impact of this slowdown?

For example, SolarEdge, a key manufacturer in the inverter and storage market, saw its quarterly sales drop from nearly $1 billion to approximately $200–250 million. As distributors and installers rushed to liquidate their stock in a shrinking market, intense competition drove selling prices significantly below purchase cost.

The market for commercial PV and solar parks has picked up in Europe. Couldn’t that compensate for the lost share in the residential sector?

For modules, the impact was somewhat mitigated, as many of the same products can be used across both: residential and commercial & industrial (C&I) installations. However, the situation was far more severe for inverters and batteries, which are typically specifically designed for residential use and cannot be economically or technically repurposed for C&I applications.

Also interestin: RWE has scored big in the tender for PV systems in Poland.

Sounds like a journey in troubled waters.

Market contraction led to a huge oversupply, leaving many distributors struggling to unlock capital from their inventories, which in turn created cash flow challenges. As a result, several distributors faced serious financial difficulties.

Menlo Electric is active internationally. Did your strategy not allow you to compensate for problems in some markets with growth in others?

Interestingly, similar trends emerged simultaneously in different parts of the world, although for different reasons: In the United States changes to net metering regulations in California led to a sharp slowdown in the residential solar sector, putting U.S. distributors in a situation very similar to their European counterparts. In South Africa the residential solar market contracted significantly as ESKOM effectively addressed load shedding issues. By late 2023, power outages were already reduced, and by the first quarter of 2024, they were virtually eliminated. This removed a major driver for residential solar demand.

Also interesting: similar trends emerged simultaneously in different parts of the world, although for different reasons

What’s the solution to this situation?

This intense crisis has actually driven increased cooperation between companies that previously operated purely as competitors. In the current market, distributors are buying and selling components among themselves across different regions, trying to rebalance supply and demand for various solar and storage products.

How have your suppliers, i.e. manufacturers, reacted to the crisis?

According to our experience manufacturer support has fluctuated. Particularly in the second half of 2024, when it became clear that the downturn was more prolonged than many had anticipated, several manufacturers scaled back or put on hold their support mechanisms for distributors. This has added further strain to an already difficult market.

Also interesting: Energix Polska teams up with Nomad Electric for 30 MW solar power project

Sounds like tough times and market consolidation

Overall, the industry is undergoing a significant reshuffle. Some distributors are reducing their international footprint, while others have gone out of business entirely. The coming months will likely bring further consolidation, as companies adapt to the new market realities.

How has the crisis hit Menlo Electric and how is it being dealt with?

It should come as no surprise that Menlo Electric has been significantly affected by the current crisis. As one of the youngest and fastest growing companies in this sector before the downturn, we did not have the time to accumulate substantial earnings that could serve as a financial cushion during such turbulent times. As a result, we have had to adjust our strategy, expanding our portfolio, focusing on key markets and increasing sourcing from other distributors across Europe. This approach allows us to remain agile while navigating the current market conditions.

Also interesting: EIB Group signs PLN 701M deal to fund Polish home PV installations.

So, what is your outlook for the future?

We remain optimistic about the future. Back in late 2020, Menlo was a company that could fit into a single room. In just three years, we scaled to €150 million in annual sales across four continents. I see absolutely no reason why we won’t rebound and return to our growth trajectory once the market stabilizes. Our priority now is to protect the foundation we have built over the past four years and position ourselves for renewed growth as soon as market conditions allow.

What key challenges did you face when expanding globally?

Running an international business in Poland, especially when expanding beyond the European Union, comes with unique hurdles. One of the challenges we experienced was finding a banking partner that could support our operations not only in Poland and Europe but also in key markets like the Middle East and South Africa. We quickly realized that there were only two banks with the necessary global footprint and presence in Poland. Fortunately, we were able to establish a strong partnership with one of them, HSBC Poland. It has provided us with tremendous support and flexibility over the years. The same applies to our partner KUKE, an insurance company belonging to Polish Development Fund Group. It has allowed us to extend insured credit limits to our clients not only across EU, but also e.g. in Ukraine and Southern Africa. With this kind of support, we will continue to build Menlo’s international presence.

Also interesting: Poland: Expert Energy Storage Conference in Warsaw.

Even though Menlo is internationally oriented, how do you see the future of the Polish PV market?

PV sales will remain stable for large systems. In my opinion, we will see more and more installations of energy storage in the residential market soon. The Polish electricity grid is a problem that needs to be addressed. It was and still is in a bad state and its rapid improvement is necessary for a further and sustainable expansion of photovoltaics.

The interview was conducted by Manfred Gorgus

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Solar Energy

CID leads at European Energy Forum 2025 in Kraków

March 20, 2025 ryansheehanrts

The European federation of energy communities represents a network of 2,500 energy communities and 2 million citizens who are active in the energy transition. This year’s annual European Energy Communities Forum offers a wide range of workshops, exchanges and interactive sessions for both starting and more established citizen-led energy initiatives and anyone who seeks to boost a more just, democratically governed energy system.

Also Intersting: Large battery storage systems in Europe are all the rage

CID support for energy communities

In February the European Commission officially launched its Clean Industrial Deal (CID). Part oft the Commission’s CID ist he „Affordable Energy Action Plan“, which contains a number of good measures that are aimed to reduce energy prices for citizens, businesses and communities across the European Union. The European Federation of Energy Communities particularly welcomes the action plan’s commitment to a „Citizens’ Energy Package“, which is to be published before the end of 2025.

Also Intersting: Poland increasingly a solar heavyweight

Simplification as a strategy

Specifically the package addresses improving opportunities for communities, citizens and businesses to join together in an energy community and initiatives such as energy sharing. The „Citizens’ Energy Package“ will be particularly important as most Member States have not yet implemented the framework conditions for energy communities required by existing EU legislation. In addition, the Action Plan proposes other measures that will particularly benefit energy communities, such as simplifications in the areas of network charges, power purchase agreements (PPAs) and permits for construction and connection of renewable energy plants.

Also Intersting: Kenneth Frey new Head of Europe of SOFAR

Criticism on the CID

In addition to praise, however, there is also criticism from the Federation of CID. Specifically, the European Federation of Energy Communities points to positions in the CID that it sees as misguided priorities and tactics that strengthen corporate power at the expense of social fairness. The association considers initiatives such as small modular reactors to be deliberate diversionary tactics that have nothing to do with the goal of affordable energy. The Federation also sharply criticizes the release of investments in liquefied natural gas infrastructure to enable additional gas imports, as well as the repeal of EU legislation that ensures European companies are held accountable for respecting human rights and environmental protection.

Also Intersting: Polish pv wholesaler Menlo Electric tops list of European growth companies

The President of the Federation to CID

Dirk Vansintjan, President of the European Federation of Energy Communities, explains: “Energy communities are social economy actors that form a growing and innovative part of European industry and will contribute to the implementation of the energy transition. To revitalize the European economy, however, the Clean Industrial Deal must be, at its core, a social contract that prioritizes the simplification of regulations for the local production, distribution, and supply of renewable electricity and heat through energy communities, as well as citizen-oriented approaches to renovation and energy savings.”

Also Intersting: Poland Surpasses 21 GW Milestone in PV Installations in 2024

Great expectations for the gathering in Poland

In any case, the CID provides ample material for discussion at the meeting of European Energy Cooperatives in Krakow, Poland, which will lead to an exciting and hopefully fruitful three-day gathering. Krakow itself is an exciting location, as in recent years the city has undergone a successful transformation from a community dominated almost entirely by coal mining to a modern municipality that excels in services, particularly in the field of green energy. (mg)

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Solar Energy

Polish pv wholesaler Menlo Electric tops list of European growth companies

March 18, 2025 ryansheehanrts

The 2025 ranking is led by Menlo Electric, a Polish wholesaler of photovoltaic components with an absolute growth rate of 830,8 per cent. The Polish company, classified in the Energy & Utilities category, leads a list of companies from a wide range of economic sectors. In second place is Allica, a UK-based financial and banking platform serving small and medium enterprises, with an absolute growth rate of 652 per cent. German mobile advertising and marketing platform Almedia is placed third, at 473.6 per cent.

Also interesting: Sunny prospects: Poland’s photovoltaics in numbers

Shares by country and economic sector

Italy, Germany, France, and the UK account for over three-quarters of the companies in the ranking. The IT and software sector accounts for one-fifth of the FT1000 companies – together with Construction & Engineering, Energy & Utilities, Advertising & Marketing, and Finance & Insurance, this share rises to half.

Eligibility Criteria

· Revenue of at least € 100,000 in the year 2020) and €1.5 million in 2023.

· The company must be independent – no subsidary or branch office.

· Growth between 2020 and 2023 had tob e predominantly organic.

· Minimum average growth rate: 34.8%

· Companies with headquartered in the following countries were eligible to participate: Austria, Belgium, Bulgaria, Bosnia and Herzegovina, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom.

Also interesting: Ukraine: Reliable solar energy for newborns in greater Kyiv region

Good and bad news

It’s good to see that a Polish company from the solar power industry is leading this list of applicants so successfully, and yes – a growth rate of 830.8 percent is breathtaking. Nevertheless, this should not obscure the current situation: Poland experienced a PV boom perhaps similar to that of the German PV-market 12 years ago with seemingly boundless growth, without limits.

Painful experience

In 2012 and 2013 the German photovoltaics industry had to learn the hard way that seemingly fixed rules can change quickly. Over 100,000 jobs were lost at that time, and virtually all cell production was relocated abroad. The Polish PV industry had to contend with significant revenue slumps in 2023 and 2024. The interview with the Managing Director of Menlo, Bartosz Majewski, highlights many connections that should be familiar to companies that have been in the market for some time.

Also interesting:

Bartosz Majewski of Menlo Electric: “We are navigating through a turbulent market”

Beyond the Rankings: The Real Challenge of Long-Term Success

The saying that nothing is as certain as constant change is especially true for even the most seemingly invincible economic giants. Strong sales growth does not guarantee long-term security, nor does high revenue necessarily translate into profitability. Being ranked among the top-performing companies in Europe is undoubtedly a remarkable achievement. However, the greater challenge lies in ensuring a company’s long-term resilience—navigating turbulent times while maintaining a skilled workforce and cutting-edge technology to sustain success for decades to come. (mg)

Also interesting: Nomad Electric secures first German EPC contract

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Solar Energy

Dialling up the green energy

March 7, 2025 ryansheehanrts

In a significant step toward sustainable energy adoption, R.Power has signed a long-term power purchase agreement – PPA – with leading telecommunications provider Play. Under this agreement, Play will receive approximately 240 GWh of clean solar energy from R.Power’s photovoltaic farms located in the Greater Poland region. These solar farms, with a combined capacity of 18 MWp, will generate green electricity to support Play’s operations. The agreement is set to run from 2026 to 2037.

Also interesting: Bartosz Majewski of Menlo Electric: “We are navigating through a turbulent market”

Major step towards decarbonization

This collaboration represents a major milestone in Poland’s decarbonization efforts, contributing to the country’s growing share of renewable energy sources also in the communication sector. By switching to clean solar power, Play is not only reducing its reliance on fossil fuels but also taking a proactive role in the global fight against climate change.

The perspective of the plant operator

“Our partnership with Play is a great example of how the private sector can actively participate in the energy transition. Through this PPA, we not only ensure stable green energy supplies for a key player in the telecommunications market but also support the development of large-scale photovoltaics in Poland,” said Rafał Hajduk, Chief Commercial Officer at R.Power.

Also interestung: H&M takes a step towards clean energy with PPA deal in Poland

The view of the telecommunications expert

For Play, this agreement aligns with its long-term climate and sustainability strategy. Beata Zborowska, Management Board Member and Chief Financial Officer of Play Group, highlighted the company’s dedication to environmental responsibility: “Investing in clean energy is a key pillar of our sustainability commitments. Partnering with R.Power allows us to significantly reduce our organization’s carbon footprint while ensuring that we operate in a more environmentally responsible way. This agreement also demonstrates that the telecommunications sector can take an active role in supporting climate-friendly initiatives.”

Also interesting: Latvia’s largest solar park has a new ownerFive countries and a comprehensive offer

R.Power is an independent solar energy producer in Poland, expanding its operations in Romania, Italy, Portugal, Spain, and Germany. The company’s activities cover the entire solar energy value chain, including photovoltaic power plant development, Engineering procurement & construction, plant operations and maintenance, as well as renewable energy production with a portfolio of over 26 gigawatt-peak in photovoltaic as well as a commitment to electricity storage.[mg]

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Solar Energy

R.Power: Dialing Up Green Energy!

March 6, 2025 ryansheehanrts

Also interesting: Bartosz Majewski of Menlo Electric: “We are navigating through a turbulent market”

Major step towards decarbonization

The perspective of the plant operator

Also interestung: H&M takes a step towards clean energy with PPA deal in Poland

The view of the telecommunications expert

Also interesting: Latvia’s largest solar park has a new ownerFive countries and a comprehensive offer

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Solar Energy

Latvia’s largest solar park has a new owner

February 27, 2025 ryansheehanrts

The deal was confirmed at the end of December 2024, although the solar park is still under construction and will not be completed until the fourth quarter of 2025. With a total capacity of 148 MW, it is expected to generate enough electricity to meet the consumption of over 40,000 European households.

Also interesting: Baltics join the European grid — tailwind for energy transition

57% renewable power until 20230

Latvia has ambitious climate goals. According to the International Energy Agency (IEA), a full 57 percent of electricity consumption should come from renewable sources by the year 2030. However, the development of solar parks in Latvia has so far been slower than in its two Baltic neighbors Estonia and Lithuania. In 2023, Latvia only had 500 MW of solar capacity.

Game changer Ventspils solarpark

The new project, located in the north-west of Latvia in the Ventspils area, is expected to contribute significantly to increasing the production of renewable energy in Latvia, as the demand for renewable energy in the country is high. One reason is the desire for greater independence from energy imports. Therefore, both public and private stakeholders have shown great interest in concluding power purchase agreements (PPAs) for renewable energy.

Also interesting: Estland öffnet 1,2-Gigawatt-Osteefeld Saare 1 wieder für Windparkentwicklung

Long standing partnership

European Energy has been working with Sampension on projects in the field of renewable energies for many years, including numerous investments in land for the development of energy parks in Denmark, Sweden and. Both companies want to expand their cooperation in the future through further solar and wind farm projects. Thorvald Spanggaard, responsible for Employer Value Proposition and Head of Project Development at European Energy says: “We are pleased to collaborate on Latvia’s largest solar park with Sampension. This step is a natural continuation of our partnership, and we look forward to contributing to the green energy transition in Latvia together with Sampension”.

Good returns for secure pensions

“We at Sampension have been expanding our portfolio of wind and solar parks for several years, contributing to more environmentally friendly energy production in Europe while generating attractive returns for our pension clients. We see the solar park in Ventspils as an attractive investment property that fits well with our existing portfolio. At the same time, we value the opportunity to further strengthen our already excellent partnership with European Energy,” says Torbjørn Lange, Leiter für Immobilien und direkte Infrastruktur bei Sampension. (mg)

Also interesting: A new director for facade specialist Gartner

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Solar Energy

“We are navigating through a turbulent market”

February 25, 2025 ryansheehanrts

Menlo Electric has grown rapidly in global solar and storage distribution. Can you share more about the company’s history?

Also interesting: European Energy puts its largest solar park in Poland into operation to date.

Did the strategy work?

What are Menlo’s main markets?

We are primarily active in Europe, the Middle East, and Southern Africa, with an emerging presence in the United States.

How have you experienced the sharp decline in component prices in recent years?

Also interesting: R.Power Poland: Pure Energy for Posh Fashion

Can you share a concrete example of the impact of this slowdown?

The market for commercial PV and solar parks has picked up in Europe. Couldn’t that compensate for the lost share in the residential sector?

Also interestin: RWE has scored big in the tender for PV systems in Poland.

Sounds like a journey in troubled waters.

Menlo Electric is active internationally. Did your strategy not allow you to compensate for problems in some markets with growth in others?

Also interesting: similar trends emerged simultaneously in different parts of the world, although for different reasons

What’s the solution to this situation?

How have your suppliers, i.e. manufacturers, reacted to the crisis?

Also interesting: Energix Polska teams up with Nomad Electric for 30 MW solar power project

Sounds like tough times and market consolidation

How has the crisis hit Menlo Electric and how is it being dealt with?

Also interesting: EIB Group signs PLN 701M deal to fund Polish home PV installations.

So, what is your outlook for the future?

What key challenges did you face when expanding globally?

Also interesting: Poland: Expert Energy Storage Conference in Warsaw.

Even though Menlo is internationally oriented, how do you see the future of the Polish PV market?

The interview was conducted by Manfred Gorgus

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Solar Energy

Poland Surpasses 21 GW Milestone in PV Installations in 2024

February 18, 2025 ryansheehanrts

Poland has been undergoing a significant energy transition in recent years, with a growing focus on renewable energy sources, particularly photovoltaics (PV). The country’s commitment to reducing its reliance on coal and increasing the share of renewables in its energy mix has led to remarkable progress in the solar energy sector. In October 2024, Poland achieved a major milestone by surpassing 20,000 megawatts of installed photovoltaic capacity, solidifying its position as a key player in the European renewable energy landscape.

Reasons for the Rise of PV in Poland

The rise of photovoltaic systems in Poland is driven by a combination of factors, including favourable government policies, falling technology costs, and increasing public and corporate awareness about the environmental and economic benefits of solar energy. Solar power has emerged as the most accessible and cost-effective renewable energy source, with the ability to be deployed on both a small and large scale.

Also interesting: Jan Stottko of SMA: “The most Polish inverter on the market”

Exponential growth in recent years

In the early 2010s, Poland’s solar energy capacity was minimal, with just a few hundred megawatts of installed PV systems. However, following the introduction of new incentives, including the “Prosumer” program in 2014, which offered financial support for residential and commercial solar installations, the market began to grow. The government also implemented auctions for large-scale solar projects, providing a competitive and transparent way for investors to enter the market. By 2020, the country had installed over 4,000 MW of solar capacity, with the number doubling by 2023.

In October 24 the 20 GW mark was broken

The 20,000 MW milestone achieved in October 2024 represents a significant acceleration in Poland’s solar energy expansion. Secondly, the Polish government has committed to phasing out coal-fired power plants and replacing them with cleaner energy sources, a commitment that has been strengthened by the European Union’s Green Deal and the Fit for 55 policy, aiming for a 55 % reduction in greenhouse gas emissions by 2030.

Also interesting: Central and Eastern Europe increasingly in the solar gigawatt classInvestments in PV from many sectors

Poland’s success in reaching 20,000 MW of installed photovoltaic capacity is also a testament to the growing participation of private investors and companies in the pv-market. International energy giants and local players have both invested heavily in the Polish solar market, contributing to the rapid increase in capacity. Moreover, Polish businesses are increasingly incorporating solar solutions into their operations to reduce energy expenses and align with sustainability goals.

Over 21 GW of PV on the grid by the end of 2024

Regardless of the achievements, Poland’s renewable energy journey is far from over. At the turn of the year 2024 to 2025, the country had installed a total capacity of 21,157 megawatts of photovoltaics, targeting further growth in solar capacity, with ambitious plans to reach 40,000 MW by 2030. This goal aligns with Poland’s broader energy transition strategy, which includes a significant expansion of offshore wind, biomass, and energy storage technologies.

Also interesting: Patrik Danz of IBC Solar: “It is a very exciting market”

Poland’s Premier PV Trade Fair – ENEX Expo in Kielce!

In this context, the most exciting renewable energy event, ENEX Expo in Kielce should not be unmentioned. It opened its doors today, bringing together the brightest minds and leading companies in the photovoltaic and power engineering sectors. For years, ENEX has been the polish go-to platform for collaboration, innovation, and growth in the renewable energy industry. If you want to be part of the movement, take the chance and visit Targi Kielce on February 18th and 19th, 2025. (mg)

Alos interesting: André Kremer and Joel Wagner of Iqony Sens: Solar and wind become one unit

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Solar Energy

Energix Polska teams up with Nomad Electric for 30 MW solar power project

February 13, 2025 ryansheehanrts

As part of the Engineering, Procurement, and Construction works carried out under this contract, Nomad Electric will also be responsible for modernizing the existing connection point. Construction work on the site is underway, and its completion is planned for the third quarter of 2025. The investments are located in the West Pomeranian voivodeship which is located on the north-east corner of the Polish map with a direct coastline to the Baltic Sea.

Also interesting: RWE has scored big in the tender for PV systems in Poland.

Central inverters for more efficiency

Both solar power plants will be equipped with central inverters, which not only convert with great efficiency direct to alternating current, but also enable advanced monitoring and optimization of the entire system’s operation. This is expected to translate into even higher energy efficiency and therefore more power-output. “We are implementing central inverters, a solution that is not typical for our market, and this requires us to adopt an unconventional approach as well. But this is how we operate, each of our solutions is tailored to the individual needs of the investor”, says Paweł Muszyński, Chief Commercial Officer and Member of the Management Board of Nomad Electric.

Also interesting: CEO Talk: André Kremer and Joel Wagner of Iqony Sens: Wind and sun become one unit

Energix Group takes two big leaps into the Polish PV market

For Energix Polska, it will be its second and third photovoltaic power plant in Poland. The construction of these plants adds another 30 MWp to the existing operational portfolio of 314 MW and is seen as an important step in the development of its operations in Poland. “We believe Nomad Electric to be a trusted business partner that guarantees professionalism at every stage of the investment and supports us in achieving our ambitious goals related to the expansion of our portfolio of renewable energy sources”, said Artur Violante, CEO of Energix Polska. Nomad Electric operates in several countries of the European Union and has concluded contracts for the technical service of PV installations with a total capacity of over 1.8 GWp; the EPC company’s project portfolio includes over 700 MWp.

Also interesting: Fires in PV systems: Risk assessment and safety solutions

Optimizing Solar Farms with Proprietary SCADA Nomad NX Software

Nomad Electric specializes in Operations & Maintenance (O&M) for large-scale solar farms and provides turnkey EPC construction services, with a project portfolio exceeding 700 MWp. Active in Poland and across the EU, the company has secured agreements for the technical servicing of over 1.8 GWp of photovoltaic projects. Nomad Electric manages PV plants through its modern Monitoring Center and proprietary SCADA Nomad NX software. (mg)

Also interesting: Tobias Schuessler of Goldbeck Solar Polska: “The demand for solar parks is rising”

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Solar Energy

EIB Group signs PLN 701M deal to fund Polish home PV installations

February 11, 2025 ryansheehanrts

The European Investment Bank Group (EIBG) signed its first synthetic securitization transaction with Inbank, an Estonian financial technology company, to back solar panel loans for private individuals in Poland. This transaction, Inbank’s first securitization, will enable the bank to provide up to PLN 701 million (160 million Euros) in new lending over three years to individuals installing solar panels and heat pumps.

European initiative for more green energy in private homes in Poland

EIB Vice-President Teresa Czerwińska highlighted that this agreement supports the energy transition in Poland, helping private individuals with green investments. It is the EIB-Groups first fully green InvestEU securitization in Poland, which demonstrates the EIB and EIF’s (European Investment Fund) initiative to maximizing the impact of green energy investments.

Also interesting: Sunny prospects: Poland’s photovoltaics in numbers

Shared risk burden

Under the agreement EIF offers protection on the senior tranche, valued over PLN 549 million, half of which is counter-guaranteed by the EIB. EIF also protects over PLN 76 million of the riskier mezzanine tranche, which is counter-guaranteed by the European Commission’s InvestEU program. Finally, the junior tranche of around PLN 10 million is retained by Inbank. The structure features synthetic excess spread and pro-rata amortization of the senior and mezzanine tranches, subject to performance triggers. EIF Chief Executive Marjut Falkstedt said, “We’re pleased to partner with Inbank on their first securitization. This agreement will inject new funding into Poland’s economy for sustainable investment and has a direct impact on individuals.” A securitization is a capital relief instrument that transfers part of the credit risk from a loan portfolio to the protection seller, allowing the buyer to lend more. In a synthetic securitization, the buyer retains the portfolio on their balance sheet.

Also interesting: R.Power Poland: Pure Energy for Posh Fashion

Empowering private households for the energy transition

Inbank’s new offering targets the purchase of solar panels and heat pumps for private households in Poland, projects that reduce CO2 emissions, improve air quality, support climate mitigation, and contribute to REPowerEU goals for energy autonomy and a green transition.

Background Information on the mentioned organisations:

The European Investment Bank (EIB) is the EU’s financial institution, owned by its 27 member states. It provides long-term financing for projects that boost competitiveness, innovation, sustainability, cohesion, and a fair transition to climate neutrality. In 2023, the EIB Group granted a total of €88 billion in new financing to more than 900 projects, of which €49 billion was earmarked for green investments.

Also interesting: Central & Eastern Europe: Utility-scale storage market set to increase fivefold by 2030

The European Investment Fund (EIF) is part of the EIB Group and supports Europe’s Small and Medium Enetrprises (SMEs) by improving access to finance through selected intermediaries like banks, leasing firms, and equity funds.

The InvestEU programme boosts EU funding by leveraging private and public investment for sustainable growth. It supports key priorities like the Green Deal and digital transition, streamlining EU financial instruments. Backed by a €26.2 billion guarantee, it aims to mobilize at least €372 billion in investment.

Inbank is an EU-licensed fintech connecting merchants, consumers, and financial institutions through its embedded finance platform. Partnering with 6,200 merchants, it manages 881,000+ contracts and operates in seven European markets. Its bonds are listed on Nasdaq Tallinn. (mg)

Also interesting: Empowering the Future: Enex, Renewable Energy Trade Fair in Kielce, Poland

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