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The investments of the PGE Group are aimed at gradually lowering our emission rate. When taking up the challenge of gradual decarbonisation and diversification of the fuel mix, we count on the support of European Union and financial institutions as long-term partners of an effective and fair transformation of the energy sector.
We are ready to actively contribute to the achievement of ambitious EU climate goals. However, this process requires significant investment outlays. Not all countries start from the same point, and the level of economic development has a significant impact on the pace of change. Our contribution to the implementation of the EU climate policy is not only the investments we undertake, but also our well-thought- -out investment plans. The necessary actions, however, require appropriate support from the EU institutions. The mobilization of appropriate financial resources makes the implementation of an ambitious emission reduction path much more realistic.
From 1989 to 2019, the Group’s system power plants reduced their SO2 emissions by 95%, NOx emissions by 58%. and dust emissions by 99% (in kg / MWh).
The PGE Group is consistently aiming to reduce carbon dioxide emissions. To realize this goal, the company recreates its production portfolio towards environmentally friendly sources.
* As a substitution effect of an average system hard-coal unit of 35% efficiency.
** For 2020 and 2025 estimated average emissions rates of PGE Group according to initial schedules of the projects given above (contribution of 2 gas-steam units and partial contribution of the offshore wind).
As a result of the investment, the net emission ratio (in terms of tonnes of CO2 per MWh) will fall from 0.98 tonnes of CO2 / MWh in 2013, to 0.88 tonnes of CO2 / MWh in 2018, to 0.78 tonnes of CO2 / MWh. After 2025, the emissions of the PGE Group units will continue to decrease, as a result of such developments as starting electricity production in offshore wind farms. The commissioning of currently implemented and planned investments will avoid CO2 emissions at the level of 60 million tonnes in 2016-2026. Projects for the construction of low-carbon sources mean that transformation costs are getting higher. Therefore, when taking up the challenge of gradual decarbonisation and diversification of the fuel mix, the PGE Group counts on the support of financial institutions, which will allow for an effective, but at the same time fair transformation of the energy sector.
PGE Group’s existing renewables generation potential is 1.1 GW, which constitutes approx. 10% of installed renewables capacities in Poland. Our installations produced approx. 10% of domestic electricity from renewable sources in 2019 (excluding biomass and biogas).
| Type | Number of units | Installed capacity (MW) |
|---|---|---|
| Wind assets | 16 | 647.1 |
| Hydro assets | 29 | 95.8 |
| Pumped storage assets with natural in-flow | 2 | 286.7 |
| Biomass assets | 2 | 75.2 |
| PV | 1 | 0.6 |
| Total renewables | 1,105.40 |
We are the leader in renewable energy in Poland and our ambition is to maintain this position. PGE is continuously analysing opportunities for further renewable energy development. According to our plans, in 2030 we would like to have a 25% share in the domestic renewable sources market. We are developing this segment in a responsible manner, taking into consideration the current economic accounts, including the expected return rate. We are commencing the execution of the plan of development of Baltic-based wind farms which will constitute a very important pillar for the transformation of the Polish energy industry. Our ambition is to achieve the capacity of 2.5 GW until 2030 and 3.5 GW in the middle of the next decade. We currently have completed the construction of an onshore wind farm with the capacity of nearly 100 MW, which increased our wind energy capacity from 550 MW to nearly 650 MW. At the same time, we are taking into account a broader engagement in photovoltaics, especially due to the increasing demand for power in the summer and the related national plans. According to the Polish Energy Policy draft (PEP 2040), approx. 7 GW of photovoltaic capacity should be created until 2030. PGE is planning to build a capacity of approx. 2.5 GW.
In 2019, we took a number of initiatives and decisions that will not only reduce the emission profile of the Group over the next few years, but also ensure the stability of electricity and heat supplies to Polish homes and businesses. We follow the direction of transformation of the PGE Group primarily through investments in renewable energy sources. After winning a RES auction, we started building an onshore wind farm with almost 100 MW installed capacity. Therefore, in 2020 we will increase the total wind power of the PGE Group by 18 percent, up to 647 MW. We are consistently implementing the project to develop offshore wind farms. The plans of the Group are to reach 1 GW in 2026 and 2.5 GW by 2030. The next milestones of the investment process allow us to look at the progress of this project with optimism. We also started implementing an ambitious solar power plants’ construction plan – our goal is photovoltaic installations with a total capacity of 2.5 GW by 2030 implemented on the land owned by the companies of the PGE Group and the land of our business partners.”
According to our District Heating Strategy, we plan to develop our cogeneration activities. It contributes in many aspects to reducing the Group’s emissivity. Given the efficient use of chemical fuel’s energy, at around 80-85% in new installations, CO2 emissions are reduced in comparison with the separate generation of heat and electricity. On the other hand, the development of district heating is heading towards zero- and low-emission fuels. One of the objectives in our District Heating Strategy is to increase the use of these fuels to 50% by 2030. We believe that, taking into account the natural environment and economy, it is important to use local fuel resources.
The District Heating Strategy features the construction of the new Czechnica CHP Plant based on the gas co-generation source, which will replace the existing coal CHP plant in 2023. We are also preparing for the construction of gas co-generation sources at Zielona Góra CHP plant, Gdynia CHP plant, Bydgoszcz CHP plant, Kielce CHP plant and Zgierz CHP plant.
The PGE Group plans to develop effective capacity based on gaseous fuel as an alternative to phased out coal blocks in power plants and combined heat and power plants. Another argument supporting the construction of flexible gas power plants is the expansion of renewable energy sources requiring balancing depending on weather conditions. In terms of low-emission technologies, the largest project is the construction of the two gas and steam blocks at Dolna Odra Power Plant. Due to the plans of expanding the natural gas transmission infrastructure and the power plant’s systemic significance for the region, among others, in terms of balancing the nearby wind farms, we made the decision to construct two CCGT units with the capacity of approx. 700 MW each.
In portfolio of the PGE Group is changing due to the implementation of the modernization program of existing assets, which aims to increase production efficiency, and thus reduce carbon dioxide emissions. In 2016, the comprehensive modernization of 10 units at the Bełchatów Power Plant was completed, and in 2020 the modernization of unit No. 2 was completed. In June 2019, the oldest unit at the Bełchatów Power Plant was shut down, which worked for 38 years and met all environmental standards until the end of its operation. The Group also implemented a modernization project for units 1-3 at Turów Power Plant, which will increase capacity from 235 to 250 MW while improving efficiency and availability.
PGE Nowa Energia company, which belongs to the PGE Group, actively participates in the promotion of electromobility – it puts charging stations for electric cars across Poland and supplies them with energy generated in 100% from renewable sources. It also invests in electric car-sharing. All these activities lead to the decarbonisation of the electricity and district heating market in Poland. By the end of 2019, the company launched 32 charging stations (one charging station may have more than one charging point) in various regions of Poland. In practice, this means 64 points in 19 cities. The PGE Group is the largest partner of local governments in building infrastructure for electromobility. Knowing the specificity of local authorities requirements as well as extensive experience and good relations with local self-governing bodies, the Group has developed a comprehensive investment model corresponding to this specificity. The PGE Group is also the first operator in Poland to supply charging stations with 100% energy from renewable sources. In this way, it achieves the goal of reducing greenhouse gas emissions, not only locally in places where electric vehicles are used, but also throughout the entire value chain of energy production. At the same time, the Group provides customers with fully ecological power supply.
We deem energy storage as a very important element of the energy system, which contributes to limiting our impact on the natural environment. It is especially important at the time of development of renewable energy sources which depend on atmospheric conditions in terms of electricity production. Capturing this energy and making it available during periods of higher demand is currently the biggest challenge. We believe that the commercialisation of economically effective energy storages will be a gamechanger for the power industry.
The implementation of the Pilot Energy Storage Program is a response to the needs of the market. Currently, one can observe constant increase of installed capacity in renewable energy sources, which requires the development of new methods for stabilizing the operation of power networks, in particular medium voltage networks.
The PGE Capital Group program focuses on analyzing the possibilities of building the first electricity storage systems using electrochemical battery technology and gathering the necessary operational experience related to the management and maintenance of both batteries and power converters as well as IT systems supporting the operation of energy storage. As part of the PGE Capital Group, four projects related to energy storage are currently underway.
PGE Dystrybucja, Branch Rzeszów wants to open a container energy store this year at the Rzepedź Main Supply Point with a capacity of approx. 2.1 MW and a capacity of 4.2 MWh. The facilities are to support the integration of renewable energy installations so that the energy generated in them can be used during the period of greatest demand. In addition, they can serve as a back-up power supply for the end customer, energy arbitration, as well as a current demand management system.
Meanwhile, we are using available technologies of energy storage such as pumped-storage plants. We own most of the pumped-storage capacities in Poland. Our four pumped-storage plants total over 1.5 GW in installed capacity. They store energy in their upper water reservoirs. And they make it possible to quickly make this energy available in the National Power System when demand for electricity significantly increases.
The share of the PGE units in the total installed capacity at pumped storage power plants in Poland is about 85 percent.
