Green energy as a good investment
Investors look for good investment opportunities in Poland and no doubt, they can find them, e.g. in the renewable energy sector (RES). Financial institutions pay more and more attention to activities that contribute to climate protection and lead up to reduce their carbon footprint. In 2021 alone, mBank allocated over PLN 1 billion to financing renewable energy projects, thanks to which CO2 emissions will be reduced by 2.58 million tons.
The condition of the renewable energy sector is very good in Poland. Investors, who survived the period of uncertainty and economic downturn a few years ago, are the beneficiaries of changes today. They sell the energy they generate at higher prices than they could have expected until recently.
– Wind energy has lately regained vigour and is doing very well. There is also a boom in photovoltaics, both in large industrial installations, medium-sized ones installed by companies, and small ones on house roofs. As a result, energy prices encourage to install more panels, even without the support system – says Michał Popiołek, Managing Director of Investment Banking at mBank.
The government wants to quickly move away from energy resources from russia – not only imported coal, but also oil and gas. Such declarations mean that greening the energy sector becomes an even more urgent task than before. There are proposals for changes in the energy system and the first steps are taken on the way to their implementation.
There is no shortage of investment capital in Poland. The availability of debt financing is high and rising interest rates should not change that. – Banks are constantly looking for interesting assets. Although the increase in interest rates translates into higher costs for investors, it is above all a challenge that requires a different model of investment financing. Inflation causes energy prices to rise proportionally, and consequently, suppliers’ revenues and their ability to repay loan installments. We are dealing with a mechanism which regulates itself in the long run – assesses the mBank expert.
An element of the transformation is the reconstruction of the energy distribution network, which assumes the inflow of energy from a huge number of dispersed sources and thus achieving a much higher energy security of the country than in the central system, dominated by several huge power plants. Even now, the Polish energy sector is much more decentralized than several dozen years ago.
High hopes are raised by hydrogen-based energy, but there are no short-term or medium-term prospects in this regard. – We have to wait years for hydrogen installations. However, the first projects with energy storage are already appearing, so far they are still investments on the verge of profitability. Nevertheless, it seems that from this state of affairs the road is not far from fully profitable enterprises. Especially as there are already countries in the world that have developed proven technologies. Therefore, it can be counted that energy storage will soon begin to emerge in Poland and operate successfully – predicts Michał Popiołek.
MBank, as the first bank in Poland, joined the Partnership for Carbon Accounting Financials (PCAF). Thanks to this cooperation, it will determine in accordance with the best standards, the carbon footprint of its loan portfolio. It is the most important source of greenhouse gas emissions related to the bank’s activity. Collaboration with PCAF is an important step towards achieving climate neutrality goals. mBank has committed itself to achieving zero net emissions by 2030 in scope 1 and 2, related to the production and purchase of energy for own needs. In 2021, bank reduced its own CO2 emissions by 40% in comparison to 2020. By 2050, the bank is expected to be climate-neutral in scope 3, for all other emissions.
Last Updated on December 22, 2022 by Valeriia Honcharuk