aerial shot of solar farm

Triumph Amidst Turbulence: NICL Successfully Refinances PV Projects in Poland

Share this story...

Share this story...

In the dynamic landscape of renewable energy, navigating challenges is an inherent part of the industry.

NICL has been active in Poland since 2017, arranging project finance for the country’s very first batch of solar PV projects under the CfD scheme shortly after a poorly managed Green Certificate regime that put many renewable energy projects into administration. The CfD scheme was a success and Poland has seen some 10 GW of new renewable capacity since!

A Trusted Development Partner

In a joint venture with Czech fund Hydrogen One, NICL launched Vaskol, a special purpose vehicle dedicated to developing and building solar PV and storage projects in Poland, with a view to incorporating green hydrogen production in the medium term. Of its 100MW+ pipeline of PV projects, Vaskol has successfully achieved RTB status on nearly 20MW, most of which has already been energised or will be energised in early 2024.

The Vaskol team demonstrated perseverance and strategic prowess by successfully refinancing its portfolio of PV projects despite a backdrop of high interest rate volatility and the government’s introduction of a price cap (see our previous article The Evolving Polish Solar Market), leading to a substantial decrease in wholesale power prices and thus, forcing greater reliance on merchant revenues.

The Vaskol team worked tirelessly to develop innovative solutions despite significant volatility in the wholesale electricity market and uncertain regulatory and political landscapes. This adaptability allowed Vaskol to secure competitive financing terms and demonstrated the team’s ability to deliver bankable projects in even the most challenging market conditions.

Vaskol’s successful refinancing sends a positive signal to PV developers in Poland. It highlights the industry’s ability to adapt to regulatory changes and economic and political uncertainties, bolstering investor confidence. The refinancing success also underscores the continued importance of solar energy in the country’s energy transition, despite short-term challenges.

The transaction would not have been possible without our market-leading panel of advisors: Dentons (Vaskol legal, Warsaw office), Norton Rose Fulbright (lender’s legal, Warsaw office), Forte Engineering (technical).