In 2019, PGE Group’s development activities were consistently carried out in accordance with the current strategy. Progress in its implementation is focused on the vision, i.e. the target position of the Group in the future, encompassing 4 basic pillars.
Leader in generation, actively taking advantage of growth opportunities
The PGE Group’s aspiration is to maintain its leading position in the generation sector and above 40% share in the domestic market beyond 2020. In order to achieve this objective, the Group implements a number of investments, while optimising investment decisions from the economic and technical point of view, taking into account the requirements of the National Power System. We are aware that the future market position is conditioned by the change in the Group’s generation mix, with an emphasis on the active role in the development of renewable energy sources in Poland.
Reliable and active utility and service supplier
Meeting the expectations of customers and meeting the highest standards is the key to running an effective business. We take care of it by reducing the reliability indicators: SAIDI and SAIFI, and consistently shortening the connection time. At the same time, improving the quality of service, we monitor the satisfaction indicators of our customers.
In the retail sales area PGE Group intends to focus on strengthening relationships with customers learning about their needs. In response to the identified expectations, PGE Group will expand its offer, among others for new products and services complementary to electricity and to develop new sales and communication channels.
Poland’s most efficient and flexible energy group
One of the key conditions enabling the implementation of the remaining strategic objectives is to ensure cost and operational efficiency. Thanks to flexibility, the PGE Group is able to quickly react to the emerging challenges in its environment.
The initiatives aimed at reducing the PGE Group’s costs and ensuring stable financing, for example by taking advantage of the power market, support the maintenance of the net debt/EBITDA ratio at a level which guarantees the possibility of implementing the PGE Capital Group’s ambitious investment strategy.
Share of the electricity generation market
- Realisation of construction of 2 units at Opole power plant.
- Launch of the start-up phase during the construction of a new power unit at Turów Power Plant.
- Launch of preparatory phase for construction of new gas-fired unit at Dolna Odra plant.
- Implementation of upgrading investment in power plants and combined heat and power plants resulting in adapting the Group’s assets to BAT conclusions.
- Implementation of the preparatory phase for the new Czechnica CHP plant project.
- Continued adaptation of power plants and CHP plants to new industrial emission standards BAT.
- Construction of 1 000 MWe of new cogeneration capacities by 2030.
- Implementation of new low- and zero-carbon projects.
Share in the renewables market
- Selecting Ørsted to conduct talks for a strategic partnership in the Offshore Wind Energy Programme.
- Launching the PV Programme, implementation of the preparatory phase for the first photovoltaic farms.
- Implementation of the “Klaster” project (97.17 MW) – onshore wind farm complex.
- The launch of a 1 045 MWe offshore wind farm half-way through the next decade, with potential expansion by 1 500 MWe by the end of the next decade.
- Expansion of the PV Programme to 2.5 GW, including using real estate not connected with the core operational areas.
Reliable and active utility and service supplier
SAIDI (minutes), SAIFI (minutes per customer)
- Launching the Medium Voltage Network Grid Grounding Programme to minimize the impact of atmospheric events on the stability of power delivery.
- Continuation of projects aimed at unifying operating activities in the Company
- Entering co-operation concerning the development of an LTE 450 network for the needs of the NPS.
SAIFI (minutes per customer))
- Further improvement in supply reliability and reduction in SAIDI and SAIFI by 2020.
- Increasing the level of network earthing.
- Development of integrated and automated system for managing LV distribution network infrastructure cooperating with diffuse energy sources.
- Construction of system for intelligent reconfiguration of LV grid to improve the quality of distribution services in normal and emergency work mode.
- Development of autonomous mechanisms for reducing the effects of MV line failures.
New customer connection time (days)
- Development of connection infrastructure for both consumers and diffused electricity generators.
- Connection process simplified and shortened.
- Optimisation of process of connecting to the distribution network by enhancing online communication, increasing the functionalities of IT systems and streamlining procedures
Customer satisfaction score (in points, PGE Obrót)
- Continuous monitoring of customer satisfaction indicators and reliability assessments.
- Regular expansion of the product offer in retail sales and new sales channels (PGE eSklep, mobile electronic Customer Service Centre, chatbot).
- Reaching the level of half a million customers served by e-invoice.
- New retail sales brand – Lumi.
- Development of product offering and communication channels using digital platforms and intelligent devices.
- Consistent enhancement of long-term relations with clients.
- Retention of low client migration rate in mass segment.
Poland’s most efficient and flexible energy group
- Procedural initiatives aimed at increasing management efficiency and generating cost savings.
- Granting of capacity contracts for 2021-2024
- Using investment, modernisation and R&D funding programmes.
- Continuation of implementation of integrated management system for production assets – development of strategic asset management plans.
- Further gradual replacement of the production fleet with gas-fired units.
- Use of undeveloped land to locate production assets, such as PV farms.
- Taking advantage of dedicated external assistance funds to fund energy transition.
Leader in development of new business models and operating segments
The PGE Group’s strategy puts great focus on the development of new business models and areas of activity, which will lead to the diversification of the revenue structure and EBITDA growth. PGE Group’s involvement in cooperation on the development and commercialisation of new technologies, in cooperation with reliable partners whose competences enable them to achieve a competitive advantage and synergy, will lead to the achievement of the objective described above. The potential areas of interest include car sharing, construction of EV charging stations, ICT technologies supporting the implementation of new business models such as ESCO, distributed energy, energy storage, smart grid and power-to-gas.
2019 saw the growing importance of the involvement in electromobility, understood both as the expansion of the charging infrastructure and the purchase of a company providing car rental services, including electric cars.
On April 24, 2019 Nowa Energia concluded a contract for the purchase of 51.47% of shares in 4Mobility S.A. (“4Mobility”). The purchased company operates on the car sharing services market – it is the third biggest company in Poland in terms of the number of shared vehicles. Car sharing services are based on short-term car rentals, and the cars are shared with other users. What is more, the company provides smart-rental services – short-term rental of vehicles for a period of one to several days, using electronic reservation systems.
