Can you explain Bank Pocztowy’s interest in the energy sector and how it is involved?

Bank Pocztowy’s main shareholder is the Polish Post, which has a broad network of branches, making it a recognizable brand. To serve private individuals and SMEs, the bank supports energy projects with a specific focus on installations up to 1 MW, mainly small PV installations for SMEs valued below 1 million euros and energy efficiency for households. The bank is relatively small, and large investments are not supported.

Why do you think now is a good time to invest in renewable energy in Poland, considering its past shaky situation?

The Polish government’s past policy was to hold on to renewable energy, but this has changed, and the doors are now widely open for investment. The situation has improved due to several factors, including more supportive energy policies and good regulation, which opens access to the grid and makes the process friendly for prosumers. The auction system has also had a positive impact by stabilizing investments in energy.

Do you expect to see more large PV projects in the future, given that two such projects won in the auction above 1 MW in December?

Bank Pocztowy’s focus is on small PV installations. While the auction system has stabilized investments in energy, the bank’s personal belief is that PV installations are best suited for small production purposes. Power generation in Poland relies heavily on large production units, which comes with a particular set of challenges.

Could you discuss some of the risks associated with financing PV projects?

From a general perspective, financing PV projects is similar to financing any other industry, such as the risk of unpaid loans. However, the energy sector, in particular, is highly sensitive to regulation and policy changes, which can happen unexpectedly, as was the case with wind energy. Additionally, there is a risk of decreasing prices, which could threaten the revenues of our customers. To mitigate some of these risks, our bank has signed agreements with other financial institutions, such as the agreement with BGK Bank in April 2020, which allows our customers to use loans for purchasing and setting up micro-installations of renewable energy sources like solar panels.

Can you share your goals for the next two to three years?

To provide an example, the Clean Air program has faced challenges due to the evaluation process being new to some candidates. As a bank, this is something we are familiar with, and with available technology, we can coordinate the process with government bodies more efficiently. We have already initiated discussions on this matter, and I hope we can reach an agreement soon.

Is there anything you would like to say to our international readers?

My message is that the investment boom in Poland is just beginning. Our production structure will change, and the market is ready and willing to adapt.