A London-based bank is set to provide funding worth PLN800 million (£165.6m) for Poland (pictured) to upgrade it electricity distribution network.

Polish energy company ENERGA – one of the largest power utilities in the country – will use the cash to introduce an advanced smart metering system and implement efficiency improvements to the network.

The firm plans to add 434MW of renewable energy generating capacity by 2015 and deploy smart meters to all its customers. Upgrades to ENERGA’s distribution network are expected to cost as much as PLN5.2 billion (£4.4bn) between 2012 and 2015.

Nandita Parshad, Director Power and Energy Utilities at the European Bank for Reconstruction and Development (EBRD), which provided the loan said: “ENERGA’s massive investment programme includes the first commercial roll-out of intelligent metering in Poland. Therefore, it will not only improve the electricity grid reliability but will also benefit customers, allowing for new tailor-made solutions for electricity supply.

“The transaction also partially addresses the issue of securing the future of energy supplies in Poland by compensating for expiring distribution grid capacity with increased efficiency and new connections for renewables.”

ENERGA is 84% state-owned and is expected to be partially privatised later this year.

The EBRD recently joined forces with the Government of Kazakhstan to help improve the standards of water and solid waste management in the country.