Poland invests PLN1.4bn to modernise grid

  • March 23, 2026
  • Steve Rogerson
Paulina Hennig-Kloska.

Poland is investing nearly PLN1.4bn to modernise its electricity distribution network.

“This investment will increase the connection capacity by 541MW,” said minister of climate and environment Paulina Hennig-Kloska during a ceremony at the headquarters of the National Fund for Environmental Protection & Water Management.

The money will be spent on contracts covering the reconstruction of 504 power stations, the modernisation and construction of over 177km of distribution lines, and the installation of nearly 58,000 remotely read smart meters.

This should increase the potential available connection capacity for new renewable energy sources by 541MW.

Part of the investment will include network cabling, including moving overhead lines underground, which will increase the infrastructure’s resistance to weather conditions and improve the reliability of energy supplies.

Nearly PLN304m will be allocated to the development of remote network management, which will enable faster detection and response to disruptions and the development of intelligent network functionalities.

PGE Dystrybucja (pgedystrybucja.pl) has signed seven co-financing agreements with the National Fund for Environmental Protection & Water Management (www.gov.pl/web/nfosigw-en/national-fund-for-environmental-protection-and-water-management) for the modernisation of the electricity distribution network.

“We are taking another step towards modernising the Polish energy sector and the Polish power grid,” said Hennig-Kloska. “Increasing flexibility and improving balancing are crucial to reducing energy costs and increasing grid resilience, including resistance to weather conditions. It’s crucial that we invest in grids, renewable energy sources and energy storage, increasing grid flexibility and improving balancing. These investments will further increase the efficiency of renewable energy sources, so that no one in Poland will even consider dismantling them, whether in a private home or a large-scale project. These are truly economically viable investments that simultaneously improve the country’s energy security.”

The funding will modernise medium- and low-voltage substations, where balancing meters with power quality analysers are planned. This should improve the energy operators’ ability to monitor and quickly respond to any grid anomalies.

The implementation of tasks under the agreements will enable the implementation of smart grid functionalities, such as real-time load monitoring and visualisation or active and reactive power flow control. Furthermore, investments in distribution networks support the development of local energy markets, including prosumers and energy clusters. They create the infrastructure for active citizen participation in the energy transition. Expanding the grid should ensure the capacity to serve new customers and increase connection capacity.