Integrated Report 2019 | PGE Capital Group

PGE Ambitions

Due to the changes taking place in our environment, PGE must change its face in order to meet the challenges of modern energy.

We intend to present the details of the PGE Group’s development vision in the fall of 2020. However, we are already carrying on our investments in line with the chosen green direction striving to diversify our generation mix and reduce CO2 emissions.

Both for the transformation of the Polish energy sector and PGE itself the development of renewable energy sources and the construction of new, flexible generation capacities based on natural gas are of key importance. The low-emission fuel makes it possible to adapt conventional plants to the increasing volatility in the electricity market along with the increase in intermittent generation capacities. The modernization of district heating also plays an important role in the transformation of the energy sector.

Offshore wind farms

PGE is actively involved in the development of offshore wind farms in the Baltic Sea, planning the construction of wind farms with a capacity of 3.5 GW. We have 3 farm projects that we systematically implement, obtaining the necessary permits, and conducting environmental and technical studies.

Our aspirations go beyond the projects carried on and we are looking for further development opportunities.

Development schedule of the offshore wind farms

 

Onshore wind farms

The PGE Group is the leader of Polish wind energy with an installed capacity of nearly 700 MW. Our ambition is to maintain our market position developing organically and acquiring already operational farms and projects.

Acquisition of the Skoczykłody farm

  • Purchase of an operational wind farm
  • Enterprise value ~ EUR 50 million
  • The capacity 36 MW
  • 12 turbines with of 3.3 MW
  • Net productivity > 31%
  • Rate of return guaranteing an increase in the Group's value
  • Support in the green certificates system until 2030
  • 2007 Kisielice I 41 MW
  • 2007 Jagniątkowo 34 MW*
  • 2007 Kamieńsk 31 MW
  • 2008 Malbork 18 MW
  • 2009 Galicja 12 MW*
  • 2009 Karnice I 31 MW
  • 2012 Żuromin 61 MW
  • 2012 Pelplin 49 MW
  • 2013 Resko I 14 MW
  • 2014 Wojciechowo 28 MW
  • 2015 Karwice 46 MW
  • 2015 Lotnisko  94 MW
  • 2015 Resko II 76 MW
  • 2015 Kisielice II 12 MW
  • 2015 Skoczykłody 36 MW**
  • 2020 Starza/Rybice 66 MW
  • 2020 Karnice II 22 MW

* Assets acquired in 2013.
** Assets acquired in 2020.

Photovoltaics

Photovoltaics is the most dynamically developing segment of the energy sector in Poland. PGE participates in this development by implementing the photovoltaic power development program. We are actively securing land for photovoltaic investments all over Poland. We pay special attention to the areas belonging to the Group, willing also to utilise the potential to develop photovoltaic farms at our conventional power plants.

  • Our aspirational goal is to obtain 2.5 GW of installed capacity in the PV segment
  • Capex for the implementation of the project in the range of ~ PLN 6–8 billion
  • The currently secured land for the investment> 500 MW

Forecast of the installed capacity of PV power plants in Poland according to the Energy Policy of Poland until 2040 project

* Project as of November 2019.

Construction of gas and steam units at Dolna Odra Power Plant

Having regard to the changes on the electricity market and the rising costs of CO2 emissions, it has become of key importance to ensure the continued operation of our conventional power plants, as they play an important role in the stability of the power system.

This vision of development is already being implemented at Dolna Odra Power Plant The modern gas and steam units being under construction will replace the coal-fired units operating today taking advantage of the fuel available (Baltic Pipe gas pipeline, LNG terminal).

  • Total net capacity: 1,366 MW (2x 683 MW)
  • Net efficiency: approx. 63%
  • CO2 emissivity: <0.35 t CO2 / MWh
  • Construction contract value (net): PLN 3.7bn
  • 17-year capacity market support provided
  • December 2019 – Main capacity market auction for 2024
  • December 2019 – Investment decision
  • January 2020 – Selection of the general contractor and signing of the contract
  • March 2020 – Signing a contract with Gaz-System for connecting the power plant to the gas network
  • December 2023 – Commissioning

Modernization of district heating

We are aware of the importance of district heating in Poland. Thanks to the developed infrastructure, we provide heat to recipients throughout the country, and by connecting new customers, we contribute to reducing emissions from individual heating sources, which are the main source of smog. Only in 2019, we recorded a record number of connections to the network. The buildings connected have a heat demand of approx. 240 MWt.

Bearing in mind the EU climate policy and the obligation to provide our customers with heat at the lowest possible cost we are to replace coal-fired units with modern low-emission units, primarily gas ones. PGE’s new investments will further contribute to the improvement of air quality in Polish cities.

Investments in gas capacities in PGE CHP plants currently prepared and analysed

PGE-grafiki-EN_mapa-ec PGE-grafiki-EN_mapa-ec
  • Thermal capacity of 320 MWt (currently 247 MWt)
  • Electric capacity 155-180 MWe (currently 100 MWe)
  • Commissioning second half of 2023
  • Reduction of average CO2 emissions from 450 kg / MWh to 220 kg / MWh
  • 90% reduction of SO2 emissions
  • 53% reduction in NOx emissions
  • 17% reduction of dust emissions

PGE Group's values

PGE Group’s strategy is realised in compliance with the following values: Partnership, Growth, Responsibility, and principles in everyday work included in PGE Group’s Code of Ethics. PGE Group is a socially responsible organisation, aware of its impact on the environment, thus in its operations it focuses on reducing impact on the natural environment, operating based on ethical principles and involvement in activities for the benefit of local communities.

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