The implementation of the Project results directly from the needs identified by the Applicant in the process of infrastructure operation. These needs are the result of an increasing number of requirements formulated for distribution networks related to the liberalisation of the electricity market and the connection of distributed generation, including renewable sources. These requirements cannot be met by the distribution networks currently in operation. The direct objective of the Project is: • developing smart grids to increase the possibility of connecting new RES sources to the electricity grid; • improving the stability/reliability of energy supply to customers by reducing energy losses in transmission/distribution networks; • creating better conditions for the development of electromobility and zero-emission transport; • create opportunities to build energy communities, including energy clusters and energy cooperatives by strengthening electricity infrastructure. The indirect objectives of the Project are to contribute, by increasing the possibility of adopting more RES energy into the grid and reducing energy losses, to reducing the demand for energy produced from conventional sources, thereby reducing fuel consumption and reducing emissions of pollutants into the atmosphere. The implementation of the Project will increase the possibility of connecting new generation capacity from RES to the grid by 38.6 MW and will reduce losses by 3880.23 MWh/year (more points. 3.6. feasibility study). The objectives and needs identified at the stage of selecting the technological variant of the project will be achieved at the Zamość Branch by: • Construction of GPZ Cyców 110/15kV; • Construction of a double-track 110kV line supplying the newly built GPZ 110/15kV Cyców; • Reconstruction of the overhead line SN and nn to the cable network in Surochów, Zgoda, Tuczempy, Munina– Stage II; • Reconstruction of the overhead line SN and nn (Radecznica-Oblastowa 1) into a cable network in Radecznica; • The conversion of the overhead line SN and nn (HRU – Kopyłów and HRU – Ubrodowice) into a cable network in Matcze – Stage 2 The project was estimated at PLN 77.586.020,47 gross including VAT of PLN 13.745.489,20. Own contribution was provided. There is no threat to the financial stability of the Company for the entire duration of the Project -more SW chapter 6.1.6. The project has all the required permits and decisions and the right to dispose of the property for construction purposes. Contracts with Contractors have been concluded (more SW chapter 4) . Through the implementation of the Project, 7 intelligent functionalities will be implemented (more SW chapter 3.5.): • Functionality of automatic control of voltage level and reactive power level on the bus; • Functionality of distribution network planning taking into account the flexibility of distributed resources; • Dynamic network reconfiguration functionality to optimise network performance; • Real-time load measurement functionality with visualisation; • Real-time load monitoring and visualisation functionality; • Functionality of active and reactive power flow control (e.g. control of distributed sources and compensators); • Functionality of current monitoring and assessment of equipment condition. Output and result indicators reflecting the effects of the material scope are presented in the SW chapter 3.4. The project will be implemented to the full extent presented in the application, in accordance with the Grant Agreement and its annexes, with due diligence in accordance with the principle (n+2). The entity managing the infrastructure created will be the applicant company. The project guarantees a shelf life of 5 years. The project contributes to the implementation of the policy PEP2040 Further information on the project selection criteria for measure 2.3 FENX can be found later in the WoD and SW chapter 2.2.5. Info-promoting activities with elements of education are described in Annex II. 5 to WoD.