Development of conventional energy will continue to be an important strategic direction for our Group. We want this to be based on the latest and most efficient technologies. (More infomation in Strategic directions)

Chart presenting demand for capacity in the national power system, showing that our flagship investment projects - Opole and Turów - will operate in the base formula. 

We are analysing other investments in conventional energy, based on a new market model, e.g. construction of new capacities at Elektrownia Dolna Odra. We are carrying out essential modernisations at our power plants and CHP plants so that they are in compliance with BAT industrial emission standards.

We see the potential that comes from investing in cogeneration. Stricter emission standards for medium combustion sources require modernisations and investment in heating sources. We intend to take this opportunity and increase our engagement in this segment in strict cooperation with local government and clients.

By building modern energy assets, we are engaging in the development of new technologies, innovations and their commercialisation. (More infomation in Innovations and R + D Academia)

Renewable energy sources are also an important element of our organic growth. PGE intends to participate in the development of "green energy" in Poland. We want to be the market leader in this area. Our aspiration, included in our updated strategy, is to secure approx. 25% share of domestic renewables production by 2030. One of the strategic options in this regard is the construction of offshore wind farms. (More information in Strategic options)

Investments being implemented in the distribution area will result in a reduction by 2020 (compared to 2015) of SAIDI and SAIFI indexes by 56%, and the average customer connection time by 40%.

In 2016-2020, we plan to spend approx. PLN 34 billion on investments (In 2016, we spent PLN 8.2 billion on our investment objectives). After 2020, we will be pursuing an investment programme dependent on the selected strategic options and in line with existing regulations for the power market.

New conventional and renewable capacities will reinforce PGE Group's position on the energy generation market. PGE Group's objective is to secure a 40% share of the electricity generation market in Poland by 2020.

Capital expenditures in 2016 

Capital expenditures in 2016 

Construction of new units at Elektrownia Opole in 2016

• construction of two power blocks with 900 MW each
• budget: approx. PLN 11 billion (net, without financing costs)
• expenditures so far: approx. PLN 6.7 billion
• fuel: hard coal
• net efficiency: 45.5%
• contractor: consortium: Rafako, Polimex-Mostostal and Mostostal Warszawa in cooperation with GE as project manager on behalf of consortium
• commissioning of finished units: unit 5 - second half of 2018, unit 6 - first half of 2019
• January 31, 2014 - order to proceed
• status: work progress at the end of December 2016 was approx. 70%

Construction of new unit at Elektrownia Turów in 2016

• construction of new 490 MW power block
• budget: approx. PLN 4 billion (net, without financing costs)
• expenditures so far: approx. PLN 0.6 billion
• fuel: lignite
• net efficiency: 43.1%
• contractor: consortium: MHPSE, Budimex and Tecnicas Reunidas
• commissioning of finished unit: first half of 2020
• December 1, 2014 - order to proceed
• status: work progress at the end of December 2016 was approx. 18%

Construction of new unit at Elektrownia Gorzów

• construction of gas-and-steam cogeneration unit with electricity output 138 MWe and heat output 88 MWt 
• budget: approx. PLN 550 million (net, without financing costs)
• expenditures so far: approx. PLN 491 million
• fuel: local nitrogen-rich gas or high-methane grid gas (Group E)
• net efficiency: 84%
• contractor: Siemens Group consortium
• October 3, 2013 - order to proceed
• status: unit commissioned on January 31, 2017

Construction of thermal processing installation with energy recovery at Elektrociepłownia Rzeszów

• construction of thermal processing installation with energy recovery at Elektrociepłownia Rzeszów with approx. 8 MWe in condensation (4.6 MWe + 16.5 MWt in cogeneration)
• budget: approx. PLN 293 million (net, without financing costs)
• expenditures so far: approx. PLN 15 million
• fuel: municipal waste
• boiler efficiency: 86%
• contractor: consortium: TM.E.S.p.A. Termomeccanica Ecologia and Astaldi S.p.A
• commissioning: first half of 2018

Key modernisation and replacement investments

Comprehensive modernisation of units 7-12 at Elektrownia Bełchatów

• project objective: unit lifecycle extension to 320 000 hours, making it possible to use existing coal resources and increase of unit efficiency by 2pp
• work progress: units 7, 8, 11 and 12 commissioned into use in 2013-2015 On June 21, 2016, unit 9 was commissioned into use, while on September 28, 2016, unit 10 was put into use.
• budget: approx. PLN 4.6 billion (net, without financing costs)
• fuel: lignite
• completion deadline: investment to be completed in 2016

Modernisation of flue gas desulphurisation systems at units 3-12 at Elektrownia Bełchatów

• project objective: reduction of SO₂ emissions to level required by IED directive (<=200 mg/Nm3)
• budget: approx. PLN 156 million (net, without financing costs)
• fuel: lignite
• completion deadline: investment to be completed in 2016

Reduction of NOx emissions in units 1, 2 and 4 at Elektrownia Opole

• project objective: reduction of NO2 emissions to level required by IED directive (<=200 mg/Nm3)
• budget: approx. PLN 148 million (net, without financing costs)
• fuel: hard coal
• completion deadline: October 2016

Construction of flue gas desulphurisation systems at units 4-6 at Elektrownia Turów

• project objective: reduction of SO2 emissions to level required by IED directive (<=200 mg/Nm3)
• work progress: installation put into use in June 2016
• budget: approx. PLN 530 million (net, without financing costs)
• fuel: lignite
• completion deadline: first quarter of 2017

Modernisation of Elektrownia Pomorzany

• project objective: reduction of SOx and NOx emissions from Benson OP-206 boilers to level allowing to meet requirements from future BAT conclusions and secure plant operations until 2040
• work progress: contracts executed with key contractors (concerning construction of IOS and deNOx and certain non-contract tasks) General contractors for IOS and SCR are currently preparing basic design documentation and documents to obtain construction permits
• project budget: PLN 364 million (net, without financing costs)
• fuel: hard coal
• completion deadline: for NOx – 2017/2018 (unit A/B), for IOS - 2019

Comprehensive reconstruction and modernisation of units 1-3 at Elektrownia Turów

• project objective: adaptation to future BAT conclusions regarding permission SOx, NOx and particulate matter emission levels and increase in availability, efficiency and nominal power output of each turboset by approx. 15 MWe
• work progress: basic design for specific islands handed over and executive design for the boiler island, turbine, generator and electrostatic precipitator
• budget: PLN 759 million (net, without financing costs)
• fuel: lignite
• completion deadline: 2020