Poland (pictured) has secured a loan worth up to PLN 283 million (£58.3m) for the construction of the “first large scale” gas-fired power plant in the country.

The combined cycle gas turbine (CCGT) plant in Stalowa Wola, located in the south east, will have a capacity of 449 MWe/240 MWt and replace the old coal-fired power units. It is expected to help cut at least 950,000 tonnes of carbon emissions every year.

The project is part of Poland’s energy investment programme driven by the need to decommission and replace inefficient and harmful power units from the 1950s and 1960s.

Nandita Parshad, Director, Power and Energy Utilities at the European Bank for Reconstruction and Development (EBRD), which provided the loan said: “The Bank is proud to invest into the modernisation of Poland’s power sector with the aim of strengthening efficiency and lowering emissions. Replacement of old coal-fired generation units with a modern gas-fired unit allows an increase of combustion cycle efficiency, as well as significantly lowers CO2 and NOx emissions. In addition the project will reduce the Polish dependency on the coal-based power generation.”

The EBRD has invested more than €6 million (£5.07m) in Poland to date.