Leader in power generation, actively capitalising on growth opportunities

PGE is the leader in electricity generation in Poland. By consistently executing our strategy, we aim to maintain and strengthen this position on the back of new conventional and renewable capacities.

Retaining the top position in production means we must secure a 40% share of the electricity production market in Poland by 2020. PGE Group will continue to implement its flagship investments in Opole and Turów. At the same time, other investments in conventional energy will be analysed, on the basis of a new market model, e.g. construction of new capacities at Elektrownia Dolna Odra.

Regardless of new investments, PGE will optimally modernise its existing power plants and CHP plants so that they are in compliance with BAT industrial emission standards, without sacrificing its market position.

Maintaining a leading position in the generation market

We realise that in a time of change on the electricity market retaining the top position is a considerable challenge. Adapting conventional energy to a new market shape, especially making operations more flexible, is just one of the initiatives that we are undertaking. To remain the leader in production over the long term, we must be prepared to adapt our generating asset portfolio. PGE Group has three strategic options therefore we can make the optimal choice in the context of future regulations. (Strategic options).

Innovations in conventional energy

PGE Group is searching for innovative solutions in the production area. They will have decisive meaning for our competitive advantage and will reduce our environmental footprint. We aim to speed up changes to the footprint of our conventional units, decrease their start-up and technical minimum times. We are making the management of combustion by-products more efficient and we are automating processes in lignite mining (Innovations).

PGE's aspirational share of domestic renewables production

Renewables leader in Poland

Our ambitions also cover renewable energy. PGE Group intends to remain the leader of the renewables segment and produce approx. 25% of domestic renewables production by 2030.

Our competitive edge when it comes to renewables is investment flexibility. We have the right potential to develop the most economically effective renewable sources. We are ready to implement the most advanced onshore wind farm projects, a 1000 MW offshore wind farm or increase our exposure to dispersed sources. Implementing specific investments will depend on regulatory conditions for the support system and, more importantly, on results of auctions in the existing renewables support system.

We expect to remain the wind energy leader in Poland. We have additional onshore projects in our portfolio, ready to be implemented.

Wind farm capacity installed in 2016 (MW)

*without PGE

We realise that the costs to develop offshore energy are high. But we are looking at this from a longer perspective, expecting a significant decrease in costs in the coming years. In combination with an adequate support system and an appropriate investment financing model, implementing such investments should be economically justified. Especially given the fact that in a wide, societal dimension this would have a positive impact on job creation in the country and the development of industry.

Forecast decrease in total cost of production for affshore wind farms

The changing energy sector also includes development of dispersed micro-installations - together with a declining cost of photovoltaics, in relation to energy prices for end customers. We want to have a presence in this part of the market as well, with a comprehensive offering for households and business clients.

Decline in overal costs of photovoltaics vs forecast energy for end customers

_{LCOE - levelised cost of electricity}