Strong Distribution and Continuous Business Optimization. Energa Group Delivers Solid Results for H1 2025
Energa Group closed the first half of 2025 with stable financial results. EBITDA increased by 2% YoY, reaching PLN 2.2 billion, while net profit grew by 1% YoY to PLN 843 million. In this period, 46% of the electricity produced by Energa Group came from renewable energy sources (RES). Capital expenditures rose by 1% to PLN 1.9 billion, of which 65% was allocated to distribution.
Total revenues for the first half of the year were 6% lower YoY. This was largely due to the high revenue base from the Price Difference Payment Fund (FWRC), which in the reporting period was 77% lower than in H1 2024. Excluding FWRC compensation, Energa Group’s revenues for the first two quarters of 2025 grew by 3% YoY.
“Strong and stable results reflect the success of Energa Group. A solid financial position is essential to achieving our business objectives. We are consistently implementing our strategy and gradually finalizing current projects. Soon, we will also start new investments, primarily in the CCGT Gdańsk and CCGT Grudziądz II gas-fired power units, which received support in the recent capacity market follow-up auction. At the same time, we continue to drive growth in our renewable energy investments and explore further decarbonization scenarios for district heating. We are also preparing for energy storage projects,” said Sławomir Staszak, President of the Management Board of Energa S.A.
In H1 2025, Energa Group produced 1.6 TWh of electricity (+12% YoY) and distributed 11.6 TWh (+1% YoY). Retail sales in the reporting period amounted to 8.5 TWh (+1% YoY).
Distribution Driving Growth
The Distribution Business Line had the largest contribution to the Group’s financial results, with EBITDA up 2% YoY to PLN 1.6 billion and revenues rising 3% YoY to PLN 3.6 billion in H1. This growth was primarily driven by higher energy volumes delivered and favorable electricity purchase prices to cover network losses, partially offset by increased operating costs.
“Energa Group’s financial performance in the past half-year was influenced by a wide range of factors, whose effects often offset each other. The positive consolidated results demonstrate that Energa Group’s business model is sufficiently stable and diversified to respond effectively to high volatility in macroeconomic and market conditions across individual quarters. Our predictable distribution operations, recognized by rating agencies, as well as efficiency-improvement measures across other Business Lines, play a key role,” said Magdalena Kamińska, Vice President of the Management of Energa S.A. for Finance.
The New Energy Business Line, which closed the half-year with standalone EBITDA of PLN 221 million, ranked second in terms of contribution to the Group’s consolidated EBITDA – despite electricity generation from renewables being 19% lower YoY. This was primarily due to a 54% drop in hydroelectric generation, driven by less favorable hydrological conditions (particularly low water levels in the Vistula River and reduced output at the Włocławek Hydroelectric Plant), as well as a weaker first quarter.
In the second quarter, total renewable energy production increased by 9% YoY despite still weaker hydroelectric results (-38% YoY) – thanks to both wind farms and significant growth in photovoltaic (PV) production, supported by the growing number of PV assets within the Group and favorable solar irradiation conditions. Wind turbines improved production results by 3% YoY over the half-year, and by 45% YoY in Q2 alone. Photovoltaics, in turn, generated nearly four times more electricity in H1 2025 than in the same period last year, and more than tripled production in Q2 alone.
Improvement in Conventional Generation Results
Over the half-year, the Professional Energy Business Line recorded a clear improvement in financial and operational performance, with EBITDA reaching PLN 132 million. Although production growth in Q2 was slightly lower than in Q1, conventional sources within Energa Group generated 74% more electricity over the six months compared to the same period in 2024. The financial and operational improvement of Professional Energy was mainly driven by increased production at the Ostrołęka B Power Plant, which provides, among other services, system support for the Polish Transmission System Operator (PSE). This was made possible, in part, by a year-on-year reduction in the variable cost base of this generating source.
A Half-Year of Intensive Investments
Energa Group’s capital expenditures in the first half of the year totaled approximately PLN 1.9 billion, up 1% compared to the same period last year.
The largest share of investments – around PLN 1.3 billion (65%) – was allocated to the Distribution Business Line. Thanks to these funds, Energa Operator expanded and modernized over 1,700 km of new lines, including nearly 60 km of high-voltage, more than 457 km of medium-voltage, and around 1,200 km of low-voltage lines. The company also connected 17,000 new customers to the grid and integrated 525 MW of new renewable energy sources (RES). After the first two quarters of 2025, 89% of Energa Operator’s customers already had installed smart meters, and a total of 640 electric vehicle charging stations were connected to the company’s network. In H1 2025, the Distribution Business Line also benefited from the first tranche of a low-interest loan under the National Recovery Plan, amounting to PLN 1.33 billion (the total financing obtained is approximately PLN 7.6 billion). Additionally, the projects carried out by Energa Operator allowed the company to exceed 10 GW of renewable energy capacity connected to its distribution network at the beginning of Q3.
Energa Group continued its investments in renewable energy sources – in the first half of the year, photovoltaic projects with a total capacity of over 400 MW were under development, including the completion of the PV Mitra project (over 65 MW) and the final installation of panels and inverters at the PV Kotla (target 130 MW) and PV Łosienice (39.9 MW) farms. In Q2, the Group also expanded its photovoltaic investment portfolio with the PV Serby project (112 MW). The 37.4 MW Szybowice Wind Farm in Opole Voivodeship was also commissioned.
At the same time, construction continued on the Grudziądz and Ostrołęka CCGT gas-fired power plants, which will serve as balancing sources for the electricity system heavily saturated with renewable capacities. All key equipment for both units, including turbines, cooling fans, and transformers, has already been installed. Grid connections were completed for both plants, connecting them to both 400 kV and 110 kV networks. Currently, assembly and installation work is underway, along with testing and preliminary commissioning of smaller equipment to prepare for the start-up of the power plants’ key components – the turbines. At the same time, during the reporting period, preparatory work was carried out for the participation of the new CCGT Gdańsk and CCGT Grudziądz II gas-fired power plants in the capacity market follow-up auction for the 2029 delivery year. In July 2025, both units secured 17-year capacity contracts totaling over 1 GW. Over the entire contract period, revenues from both new gas-fired units may reach approximately PLN 9.5 billion.
In H1 2025, the investment program in the Group’s largest district heating assets, managed by Energa Kogeneracja, continued. At the Kalisz Combined Heat and Power Plant, a 50 MWt reserve-peak boiler was commissioned, and construction of a gas engine cogeneration system with 20 MWt thermal and 20 MWe electrical capacity was also being finalized. A similar engine system, though with higher capacity – 30 MWt thermal and 30 MWe electrical – is being developed at the Elbląg Combined Heat and Power Plant. In the first half of the year, preparatory work was completed, and foundations were poured for key equipment and buildings currently under construction.
Within the framework of Energa Group’s energy transition vision, the Retail Business Line is implementing modern product offerings for its customers: photovoltaic installations with energy storage and dynamic pricing options, as well as heat pumps. It also provides solutions for business clients to help reduce both energy costs and CO2 emissions.