A company in Poland has been granted loans totalling €46.4 million (£39m) to retrofit existing heat distribution networks in the country.

District heating network operator KPEC will use €23.2 million (£19.6m) from the European Investment Bank (EIB) to finance the upgrade of Bydgoszcz’s heating network – which serves around 250,000 people – and part of its energy generation system.

A total of 55km of old lines and 96 old substations will be retrofitted and 71km of new lines and 416 new substations will be built.

In addition, five high efficiency gas combined heat and power (CHP) engines will replace the existing coal-fired units, delivering primary energy savings of up to 25%.

Neighbouring municipalities – Solec Kujawski, Szubin, Nakło nad Notecią and Koronowo – will also benefit from the project.

An additional €23.2 million (£19.6m) will be used to upgrade the district heating network, which supplies heat to around 250,000 people, in Lublin.

A total of 33km of old lines and 211 substations will be retrofitted and 28km of new lines and 355 new substations will be built, contributing to an additional 59MW of capacity and making the network more efficient.

Lilyana Pavlova, EIB Vice President, said: “Energy efficiency is one of the surest ways to bring energy demand down and, by doing so, to reduce greenhouse gas emissions.

“These are our first loans to both Bydgoszcz and Lublin’s heat network operators. They add to a growing list of Polish municipal operators that receive EIB support to finance their energy efficiency programmes, leading to better air quality. This is also part of the overall transition to a low carbon economy and we are happy as the EU Climate bank to play a role”.