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Analyses of the Ostrołęka C Project completed

June 03, 2020

 

Enea and Energa completed detailed analyses of the Ostrołęka C Project. The analyses showed that the change of the project into a gas-fired power plant is well founded. On 2 June 2020, Enea, Energa and PKN Orlen also signed a tripartite agreement defining guideline principles of further cooperation on the project, including possible involvement of PKN ORLEN as a partner in the project.

Based on the results of the completed analyses of Ostrołęka C Project, Enea and Energa decided to implement the investment with the use of natural gas combustion. It is affected by regulatory changes at the European Union level, as well as the lending policy of individual financial corporations, significantly limiting the availability of financing for coal power projects. The acquisition of control over Energa by PKN ORLEN whose strategy assumes the implementation of low and zero emission investments, including gas technology, also constituted an important factor. Examples of such projects are the gas-fired units in Płock and Włocławek.

The technology using natural gas for energy production is advantageous because gas-fired energy is more flexible as regards the financing of the renewable energy sector which is characterized by low-regulated production. Additionally, the average emissivity of this technology is two times lower than that of coal-fired power plants. The above aspects also affect the higher profitability of a project implemented in gas technology.

Poland needs more and more energy. According to the latest forecasts by Polskie Sieci Elektroenergetyczne (PSE), included in the Transmission System Development Plan until 2030, the net electricity demand in Poland between 2020 and 2040 will increase by ca. 28%, from 159.9 to 204.2 TWh. Consequently, the energy transition should be carried out in a sustainable manner and it should secure this demand. The construction of a generation unit supporting the Polish Power System in the north-eastern part of the country is consistent with the security principles of the system.

As regards the above mentioned guideline agreement, the specific principles of further cooperation are currently under discussion. The agreement also provides for joint actions by Energa and PKN ORLEN to obtain financing for the project.

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We are one of Poland’s four largest energy companies and one of three largest electricity suppliers in Poland. Our core activities include the generation and distribution of and trading in electricity and heat, as well as gas trading.

Energa Group is the third largest integrated distribution system operator (DSO) in Poland in terms of the volume of energy supplied. Its distribution network consists of power lines with a total length of more than 188,000 km and a coverage of approximately 75,000 sq km, close to 24 percent of the country’s total area.

In 2019, the total installed electric power of the Group’s power plants amounted to 1.35 GW,  38 percent of which (0.5 GW) accounted for renewable energy sources (RES).