PolandÂ’s PGE to add 8,000 MW by 2020

WARSAW, POLAND - In a recent announcement, Polands diversified and largest power company, PGE Polska Grupa Energetyczna SA PGE, revealed plans to add 8,000 megawatts MW of new power generation capacity by 2020.

At the same time, the company plans to shut down 2,300 MW of old generation capacity. PGEs plans include development of two nuclear power plants of 3,000 MW each at an investment of about 21 billion euros US $28.4 billion. The first nuclear power plant is scheduled to be built by 2020, and the second by 2023.

Of the proposed 8,000 MW of new capacity, the remaining generation capacity is expected to come from wind energy. According to 2009 data, Polands existing wind power capacity is about 666 MW.

The plans were announced during a recent Sejm treasury committee meeting by PGE Deputy Chairman Wojciech Topolnicki. The Sejm is the lower house of the Polish parliament.

In August 2009, Poland unveiled its nuclear energy roadmap, which aimed to begin nuclear power generation before 2021. Project sites are expected to be identified between 2011 and 2014. Poland will also need to assess its uranium resources, given the Soviet Unions earlier exploitation of Polands uranium. Finances and reactor technology are expected to be finalized during the same time period.

As part of the roadmap, PGE announced Zarnowiec, in northern Poland, as a likely project site for a nuclear power project. Construction of four Russian VVER440 pressurized water reactors started at the site several years ago, but was cancelled in 1990. Construction of the new nuclear power plant is expected to begin in 2016. All the necessary safety measures involving the environment and radioactive waste will be undertaken at the project sites.

Topolnicki added that a 858MW coal block at PGEs 4,440MW lignitefired Elektrownia Bechatów in central Poland will be completed by April 2011. Two new coal blocks of 900 MW each will be completed at Elektrownia Opole in southwestern Poland by April 2015, and a 460MW coal block will be completed at Elektrownia Turów in southwestern Poland near the German and Czech borders by 2016. The tender for the two units at Elektrownia Opole has been launched. Turów will also see the decommissioning of three 200MW blocks during the same period. PGE said that the company plans to invest between 260 million euros US $351 million and 390 million euros US $527 million on distribution networks in 2010.

Topolnicki said that the countrys gas imports are set to increase with the commissioning of Polands first liquefied natural gas LNG terminal at Swinoujscie, which is fairly close to PGEs existing hard coalfired Zespol Elektrowni Dolna Odra ZEDO facility in northwestern Poland. PGE plans to take advantage of this increased supply and set up a new gasfired power plant at ZEDO.

The ZEDO facility is the companys oldest plant and is scheduled for an overhaul. PGE hopes to take advantage of the Swinoujscie LNG terminal to run the ZEDO plant in the future. The Swinoujscie terminal is expected to receive its first LNG supply in 2014. As per the companys investment committees recommendations, the company plans to set up two gasfired blocks with a generation capacities of 432 MW each. The first block is slated to be commissioned in 2015.

Plans are also under way to set up a 1,600MW coalfired greenfield plant at Lubin in southeastern Poland. However, the final decision regarding the plant depends on the carbon dioxide emission allowance PGE receives from the government.