Energy

The key area of development of the ORLEN Group in the next decade will be energy, based mainly on renewable energy sources and supported by gas capacities. By 2030, the Company intends to achieve 2.5 GW of installed capacity in renewable sources. 1.7 GW will be provided by offshore wind farms, and 0.8 GW by onshore sources - wind farms and photovoltaics.

GRI Disclosures:

SDGs:

  • Goal 7
  • Goal 9
  • Goal 11
  • Goal 12
  • Goal 13

Capitals:

  • 103-1
  • 103-2
  • 103-3

Main production assets

The ORLEN Group is a significant producer of electricity and heat, used in large part to satisfy the Group’s own production needs, as well as one of main distributors of electricity in Poland. It is also one of the largest consumers of gas in Poland and an active participant in the process of gas market liberalisation. The ORLEN Group currently owns energy assets in three countries. In Poland, they are located, inter alia, in Płock, Włocławek, Ostrołęka, Elbląg, Kalisz, Jedlicze and Trzebinia; in the Czech Republic – in Litvinov, Libiš, Kolin and Pardubice; and in Lithuania – in Mažeikiai. In terms of the share of electricity from renewable sources in total energy output, the ORLEN Group owes its strong market position mainly to hydropower plants and wind farms owned by the Energa Group and ORLEN Wind 3. Green energy is also generated in biomass combustion installations (at Energa Elektrownie Ostrołęka and Energa Kogeneracja) and three solar photovoltaic farms.Aktywa energetyczne i ich parametry techniczne w Grupie ORLEN

 

ORLEN Group’s energy assets and their technical parameters

orl_assets-map orl_assets-map

Source: In-house analysis

For more information on the competetive environment, see ‘Competitive Environment’.

Wind powerplants

Solar PV farms

Hydroelectric powerplants

CCGT plants

Combined heat and power plants and heating plants (CHPs and HPs)

Comercial power plants

Offshore wind power generation

  • The Kanin wind farm of Livingstone (ORLEN Wind 3 Group), located in Kanin near Darłowo in the Province of Szczecin. It is made of eight Nordex wind turbines with a total capacity of 20 MW.
  • The Nowotna wind farm of Nowotna Farma Wiatrowa (ORLEN Wind 3 Group), located in the village of Nowotna in the County of Nowy Dwór Gdański, Province of Gdańsk. It is made of 20 V110 2.0 MW Vestas turbines.
  • The Kobylnica wind farm of Nowotna Farma Wiatrowa (ORLEN Wind 3 Group), located in the village of Kobylnica in the County of Słupsk, Province of Gdańsk, comprising 18 Siemens SWT 2.3 MW turbines.
  • The Subkowy wind farm of Nowotna Farma Wiatrowa (ORLEN Wind 3 Group), located in the village of Subkowy in the County of Tczew, Province of Gdańsk. It is made of four Gamesa G90 2.0 MW turbines.
  • The Bystra wind farm of Energa OZE, located in the villages of Bystra, Dziewięć Włók and Wiślina in the County of Pruszcz Gdański, Province of Gdańsk. It is the smallest and also the newest farm located in the vicinity of Gdańsk. Within an area of 2 sq. km there are 12 Gamesa G90 turbines totalling 24 MW in capacity.
  • The Karcino wind farm of Energa OZE, located between the villages of Karcino and Sarbia in the County of Kołobrzeg, Province of Szczecin. Within an area of 6 sq. km there are 17 Vestas V90-3 turbines totalling 51 MW in capacity.
  • The Karścino wind farm of Energa OZE, located near the village of Karlino in northern Poland, in the County of Białogard, Province of Szczecin. It is made of 60 Fuhrländer FL MD77 turbines with a total capacity of 90 MW, and occupies an area of 11 sq. km.
  • The Myślino wind farm of Energa OZE, located in the northwest of Poland, in the County of Kołobrzeg, Province of Szczecin. Placed in operation in 2014, it is made of 10 Gamesa G97 wind turbines with a total capacity of 20 MW.
  • The Parsówek wind farm of Energa OZE, located in the Municipality of Gryfino, Province of the Szczecin. It is made of 13 Gamesa G90 turbines with a total capacity of 26 MW.
  • The Przykona wind farm of Energa OZE, built on a coal mine reclamation site in the Municipality of Przykona, County of Turek. It is made of nine Vestas V126 wind turbines with a total installed capacity of 32.85 MW.
  • Delta PV of Energa OZE, in operation since the second half of 2014. It is located at ul. Benzynowa in Gdańsk, near the Bystra wind farm. The farm consists of 6,292 photovoltaic panels combined into 286 sets. Each set contains 22 photovoltaic modules in series connection. The farm’s installed electrical capacity is 1.64 MW.
  • Czernikowo PV of Energa OZE, located in the Municipality of Czernikowo. The farm’s installed electrical capacity is 3.77 MW. The farm consists of nearly 16,000 panels, each with a capacity of 240 Wp, covering an area of over 22,500 square metres.
  • Wielbark PV of Energa OZE – Wielbark PV assets with a total installed capacity of 12 MW were purchased by Energa OZE in two stages as part of an acquisition process carried out in 2021. The acquisition of Wielbark PV will ultimately cover assets with a total installed capacity of 62 MW located on an area of approximately 119 ha.
  • Włocławek hydroelectric power plant of Energa OZE, with its installed capacity exceeding 160 MW and an average annual output of 750 GWh – Poland’s largest run-of-the-river plant. It generates more than 20% of the total output of Polish hydroelectric power plants. The Włocławek power plant was placed in service in 1969. It has six vertical hydroelectric sets with PŁ 661-W-800 Kaplan turbines produced in the former Soviet Union.
  • Żydowo pumped-storage power plant of Energa OZE, built in 1971. It is operated as an energy source in periods of sudden or peak demand, which means that in the event of a sudden power shortage, water is released through the turbines, and when there is excess power, the plant pumps the water back. This power plant is a natural energy storage facility. Its installed capacity is 157 MW, with three contributing turbine generator sets equipped with Francis turbines and Skoda Pilzno generators.
  • Small hydroelectric power plants of Energa OZE comprise 44 small plants located mainly in northern Poland and one in the south of the country, with a total installed electrical capacity of about 40 MW.
  • CCGT Włocławek, a combined cycle gas turbine with an electrical capacity of 474 MW and thermal capacity 417 MW, producing heat and power in the cogeneration process. It came on stream in June 2017. In 2021, the plant operated in a stable manner, supplying electricity and process steam to PSE and Anwil. Thanks to relatively fast system control and high generation capacity, it steadily met the current demand from Poland’s power system and Anwil, while actively participating in the capacity market. In 2021, the CCGT plant produced 2.8 TWh net of electricity and supplied 1.3 PJ of heat in the form of process steam to Anwil. Mandatory borescope inspection was conducted as required in the turbine supplier’s schedule and air intake filters were replaced regularly. Active work was underway to secure the HGPI overhaul scheduled for the first quarter of 2022. Additionally, work was started on the construction of a solar PV farm at the CCGT Włocławek site, which is expected to be placed in service in the first half of 2022.
  • CCGT Płock, a high-efficiency cogeneration unit commissioned in June 2018, with an electrical capacity of 608 MW and thermal capacity of 519 MW. The fuel for the plant is high-methane natural gas. January 23rd 2021 saw the start of a scheduled HGPI overhaul of the gas turbine and generator resulting from the turbine unit maintenance contract. On May 15th 2021, CCGT Płock resumed operation, operated in a stable manner, actively participating in the capacity market. Producing heat and power in the cogeneration process, the CCGT plant covered shortages of these utilities at the Płock production plant, while remaining an active participant of the electricity market and providing ancillary power reserve services to the transmission system operator PSE. In 2021, it generated 2.4 TWh net of electricity and 3.1 PJ of steam supplied to the Płock production plant system.

Surplus electricity from the new CCGT assets is sold both on the wholesale energy market and to end customers.

  • In terms of thermal capacity, PKN ORLEN’s high-efficiency combined heat and power plant in Płock is the largest industrial plant of this kind in Poland and one of the largest in Europe. It is the main supplier of steam heat, heating water and electricity to the Group’s production units in Płock and to external customers, including the city of Płock. Following the launch of a new TG7 turbine generator set and shutdown of the TG1 unit (which is to be upgraded), the total installed energy capacity of the CHP plant was 358.9 MW in 2021. After TG1 was commissioned in December 2021, the total electrical capacity at the Company’s CHP plant rose to 428 MW. A formal confirmation of the installed capacity will take place after a revised license for electricity generation is received from the President of URE. Boilers of the CHP plant are fired with heavy fuel oil derived from crude oil distillation and with natural gas.
  • The ORLEN Południe Group’s CHP plant in Trzebinia fully satisfies the Trzebinia plant’s demand for steam heat and heating water, and partly its demand for electricity. The CHP plant is fuelled with natural gas and fine coal. The new natural gas-fired heat source commissioned in 2019 was expanded in 2021 to include a third gas-fired boiler, which is currently being adapted for biogas co-firing.
  • The ORLEN Południe Group’s CHP plant in Jedlicze, fired mainly with fine coal, is the Jedlicze plant’s main supplier of heat in the form of process steam. Other fuels used at Jedlicze include natural gas, fuel oil and C4 fraction.
  • The Anwil CHP plant is the primary source of heat in the form of medium pressure process steam and, at the same time, the peak-load and reserve source of heat for the Włocławek chemical complex. A project is underway to build a new gas boiler house to replace the existing boilers whose operation is limited due to environmental requirements. For process purposes, Anwil relies mostly on low pressure process steam from the Włocławek CCGT unit owned by PKN ORLEN.
  • The ORLEN Unipetrol Group’s CHP plant in Litvínov, using mainly lignite as fuel, fully meets the Litvínov plant’s heat demand and partially satisfies its electricity demand. Design work is now under way for a new CHP plant project based on high-efficiency gas-fired cogeneration, which will ultimately replace the existing plant. The new CHP plant is expected to be launched after 2025.
  • The CHP plant in Spolana is the main source of heat for the Spolana facility. Since 2020, when the construction of a new gas-fired boiler house was completed and the existing coal-fired CHP plant was taken out of service, 100% of the demand for heat has been covered by a low-emission source.
  • EC Paramo (Pardubice and Kolin) fully secure the heating needs of two production facilities in Kolin and Pardubice. The heating plants are fired with natural gas.
  • The ORLEN Lietuva CHP plant is a source of process steam used in production processes, while ensuring stability of the power system. The plant is fired with natural gas, refinery gases, C4 fraction, and fuel oil.
  • The Elbląg CHP plant of Energa Kogeneracja sp. z o.o. is the largest source of heat and electricity in Elbląg (Olsztyn Province). The heat generated by this source covers approximately 80% of the demand of the district heating system in Elbląg. The CHP plant is fired with coal and biomass. A new system is under construction with gas-fired water boilers to replace the coal-fired boilers.
  • The Kalisz CHP plant of Energa Kogeneracja sp. z o.o. is the largest source of heat and electricity in Kalisz. The heat generated by this source covers approximately 70% of the demand of the district heating system in Kalisz. The CHP plant is fired with coal. A new system is under construction with gas-fired water boilers to replace the coal-fired boilers.
  • The Żychlin CHP plant of Energa Kogeneracja sp. z o.o. is the main supplier of heat for the city. The heat generated by the plant is transmitted and distributed through district heating networks, most of which are owned by the company, and so is the plant itself. The CHP plant is fired with coal and biomass.

The Ostrołęka B power plant of Energa is the only commercial power plant in the north-eastern region of Poland, which supplies energy to the Polish Power System. It also produces heat for industrial and municipal customers from the area of Ostrołęka. Its boilers use coal as a primary fuel. The power plant consists of three generating units with a capacity of 230 MW each. Its generating capacity totals 690 MW.

In its strategy until 2030, PKN ORLEN has set the target of 1.7GW of installed offshore wind power capacity (weighted by its share in the projects), assuming potential further development of the offshore wind power portfolio after 2030. The ORLEN Group has been consistently working to become the leader in offshore wind energy generation in the Polish Baltic Sea zone.

In 2021, the ORLEN Group consistently carried out activities in the form of continuation of the construction of the first offshore wind farm (OWF) „Baltic Power” with a capacity of up to 1,200 MW in the Polish exclusive economic zone of the Baltic Sea and the creation of an OWF competence center for the implementation of subsequent OWF construction projects. In the Baltic Power project, an environmental decision was obtained for the area of the Offshore Wind Farm (OWF) and over 2-year wind tests were completed and signed with Polskie Sieci Elektroenergetyczne S.A. connection agreement. The main stage of preparation of the preliminary technical project of the OWF has been completed. A positive decision was obtained regarding the financial support for the project in the form of the so-called contract for difference (CFD) at the Polish level (ERO), and the documentation required to notify the obtained support at the European Commission level was submitted to the relevant authorities. The commissioning of the OWF „Baltic Power” is scheduled for 2026.

As part of the operationalisation of its strategy it was assumed that the development of the ORLEN Group’s wind power segment may be most effectively achieved through organic development of competencies and market advantages based on the opportunities offered by the emerging market in Poland and the Baltic states. To this end, an Offshore Competence Centre is being established within PKN ORLEN to implement new projects. To support the wind power development in the Polish Baltic Sea zone, two new companies: ORLEN Neptun I-XI and Energa MFW 1-2 were established to obtain permits to construct and use artificial islands, structures and equipment in the Polish exclusive economic zone of the Baltic Sea. The next step in the process will be to prepare for the construction of offshore wind farms. In December 2021, the companies completed preparations for the filing of 11 applications for location permits with respect to all designated areas. The first was submitted in the same month, with the remaining applications planned to be filed when the administration opens the next application rounds.

In order to assess the attractiveness of offshore wind power development, PKN ORLEN launched the POSEJDON project in the Baltic states. In line with the project schedule, a strategy for entry into the Baltic markets was worked out, which provides for further development of the POSEJDON project and preparation of a recommendation concerning PKN ORLEN’s participation in the planned offshore auction on the Lithuanian market in 2023. The estimated total offshore potential in the Baltic States is 26 GW. In 2025, the Baltic States will disconnect from the BRELL system. Electricity imports from Russia and Belarus will thus cease, forcing an earlier expansion of low-carbon energy sources. Lithuania, whose offshore potential is estimated at 3.35 GW, is the most developed market of this kind in the Baltic states, with the first auction scheduled for September 2023 (700 MW). The Lithuanian state is conducting environmental, geophysical and geotechnical surveys as well as wind surveys, the findings of which are to be made available to the auction winner. As part of the Latvian-Estonian partnership, Latvia prepared the 700-1000 MW ELWIND project, with an auction planned for 2025. In addition, in 2021 PKN ORLEN launched a procedure to prepare an analysis of green hydrogen production using offshore wind power assets in Lithuania, Latvia and Estonia.

In August 2021, PKN ORLEN entered into a strategic offshore wind power partnership with GE of the US, one of the world’s leading manufacturers of offshore wind farm turbines. The agreement does not mean that GE will definitely supply turbines for the planned offshore wind farms but may guarantee certainty of supply to PKN ORLEN and strengthen its competitive position in seeking new location permits for offshore wind farms in the Polish exclusive economic zone of the Baltic Sea. The partnership marks another stepping stone in the delivery of the ORLEN2030 strategy, aimed at achieving a zero net carbon footprint in 2050.

In September 2021, a sectoral agreement was signed concerning offshore wind power development in Poland. The agreement is intended to lead to the execution of an agreement between key offshore sector stakeholders (government representatives, investors, supply chain companies, industry organisations, etc.) on supporting the development of this sector in Poland, including the local supply chain.

Capacity market

2021 was the first year when the capacity contracts concluded in the capacity market were performed and thus payments were received under the capacity market mechanism. Generating units that participated in the capacity market in 2021 were: PKN ORLEN’s CCGT Płock and CCGT Włocławek as well as the ENERGA Group’s generating units of ENERGA Elektrownie Ostrołęka SA, ENERGA OZE SA and ENSPIRION Sp. z o.o.

As in 2018–2020, capacity market auctions were held in 2021 to enable execution of new capacity contracts to be performed in subsequent years:

  • On March 16th 2021, four additional auctions were held for the delivery year 2022;
  • On December 16th 2021, the main auction was held for the delivery year 2026.

In the four additional auctions for the delivery year 2022, capacity contracts were concluded by ENSPIRION Sp. z o.o. of the ORLEN Group, providing for 133 MW in the first quarter, 125 MW in the second quarter, 125 MW in the third quarter and 129 MW in the fourth quarter.

In the main auction for 2026, six companies from the ORLEN Group placed bids and won a total of 2,474.059 MW, which was the largest total volume of all groups participating in the auction. It is important to note that in the main auction for 2026 capacity contracts with a term of 17 years were secured for new CCGT plants in Grudziądz and Ostrołęka. The main auction for 2026 ended with a price of PLN 400,390 per MW/ for the first year.

Below is a summary of the volumes of the individual ORLEN Group companies:

278 MW

PKN ORLEN S.A.

518,370 MW

CCGT Grudziądz Sp. z o.o.
– 17-year contract

695,951 MW

CCGT Ostrołęka Sp. z o.o.
– 17-year contract

720 MW

ENSPIRION Sp. z o.o.

135,668 MW

Energa Elektrownie Ostrołęka SA

176,976 MW

Energa OZE SA

Development of gas-fired power generation is one of the important areas in  ORLEN2030 Strategy. This growth direction gained additional solid business foundation with the participation of the ORLEN Group’s CCGT units in the main capacity market auctions. The long-term capacity contracts obtained for the planned CCGT units in Ostrołęka and Grudziądz are also vital for maintaining security of electricity supply to end customers. New, low-carbon, flexible gas sources will complement renewable energy sources and allow for their further dynamic development.

Wholesale and retail trade

In 2021, the following companies of the the ORLEN Group were engaged in wholesale of electricity: PKN ORLEN S.A., Energa Obrót S.A. and Energa Elektrownie Ostrołęka S.A. Those companies also acted as Commercial and Technical Operator. In the first place, PKN ORLEN S.A. purchases electricity for its own needs and for the needs of Group production companies. As regards electricity trading, PKN ORLEN S.A. focuses on optimising the sale of generated electricity and the operation of generating units.

Energa Obrót S.A. engages in wholesale electricity trading and optimises purchases for the needs of its retail portfolio. In addition to optimising electricity purchases, Energa Obrót S.A. is also expanding its operations in the renewables market, offering customised products for entities producing energy from renewable sources.

The ORLEN Group is now running a project aimed at comprehensive centralisation and integration of the wholesale energy trading in the merged Group and achievement of financial and competence synergies from the integration process.

The ORLEN Group is also implementing a project to centralise sales functions in Energa Obrót S.A. and build strong competencies and solutions dedicated to customers in a single sales area.

niemcy stacja wodorowa niemcy stacja wodorowa

Alternative fules

In line with the ORLEN Group strategy electricity (Electromobility) is one of the alternative fuels that will significantly transform the fuel industry from 2030 onwards. Therefore, PKN ORLEN plans to construct 1,000 publicly available charging stations by the end of 2030. As at the end of 2021, the ORLEN Group had a network of: 454 electric vehicle charging stations, including 215 so called fast electric vehicle charging stations. In 2021, PKN ORLEN’s and ENERGA Group’s electric vehicle charging stations were integrated into one ORLEN Charge system. The prices at all of the stations are based on agreed EV charging rules and a price list available in the ORLEN Charge application.

PKN ORLEN is implementing an extesive hydrogen programme involving implementation of low- and zero-carbon hydrogen applications, both directly in transport and in industry and power generation. In 2021, the ORLEN Group launched the Hydrogen Eagle project, spanning Poland, the Czech Republic and Slovakia. It will consist in the construction of a dispersed system of new hydrogen hubs, whose annual production capacity is expected to reach 50,000 tonnes of low- and zero-emission hydrogen by 2030. The project will also include development of an international network of over 100 hydrogen refuelling stations. The Hydrogen Eagle project seeks non-refundable financing under the Important Projects of Common European Interest (IPCEI) programme. In 2021, PKN ORLEN pursued a number of hydrogen initiatives. For instance, the ORLEN Group completed a project to construct the first hydrogen hub in Trzebinia (producing automotive hydrogen), and obtained EUR 2 million of non-refundable financing from the Connecting Europe Facilities (CEF) programme for the project ‘Clean Cities – Hydrogen Mobility in Poland, phase 1’, as part of which it will build a hydrogen hub in Włocławek, hydrogen refuelling stations in Poznań and Katowice, and a container station in Włocławek.

Strategic projects and business areas in energy

PKN ORLEN’s efforts to construct a gas-fired power plant in Ostrołęka are in line with its strategic plans to develop zero- and low-carbon sources of power generation.

In 2020 the Company, already the owner of Energa, declared its willingness to take part in the project to construct a power plant in Ostrołęka provided that it will would rely on gas as fuel. The agreement on the general rules of cooperation in the construction of gas-fired power plant in Ostrołęka was signed back in June 2020, and in September PGNiG expressed its willingness to join the project. A trilateral agreement between PKN ORLEN, Energa and PGNiG concerning implementation of the project was signed in December 2020. In January 2021, CCGT Ostrołęka Sp. z o.o. (an SPV) was established to execute the project, and in April 2021 UOKiK granted its consent for the joint project with PGNiG. On June 25th 2021, an agreement was signed with a consortium of Energa Group companies for the construction of a combined cycle gas turbine (CCGT) plant with a net capacity of 745 MWe. Also, a long-term maintenance contract was concluded for the unit. In 2021, work continued to obtain all administrative decisions necessary for the project and develop the project design. In the main capacity market auction held in December 2021 the CCGT Ostrołęka project secured support for a period of 17 years. The plant is scheduled for commissioning in 2025. This is a critical project that will secure the capacity required in the system to cover growing demand for electricity, and thus will help stabilise the prices of electricity in Poland by increasing its supply in the system. The power generating unit at Ostrołęka C Power Plant will be a stable and advanced source of electricity produced from natural gas, making it possible to balance energy from renewable sources.

Following suspension of the project in mid-2020, a decision was made in mid-2021 to proceed with the construction of a CCGT unit in Grudziądz, which will be a typical condensing power plant with a planned net capacity of approximately 560 MW.

A tender procedure was carried out and binding bids were received from three leading gas turbine suppliers. Following the procedure, the preferred contractor was selected and final negotiations on the contract started. The negotiations are to be closed and the contract is to be signed in 2022, while the unit is scheduled to be commissioned in 2025.

In 2021, conceptual and design work was carried out at the Company concerning construction of a new electricity and heat source for the needs of Unipetrol. The key challenge in 2021 was to complete the tender documentation drafting process.

Technical documentation was prepared based on which potential bidders may enter the tender procedure. An environmental decision for the new project was secured and an application for co-financing was submitted in September. The company plans to launch the tender procedure in 2022.

In 2021, work was carried out on a CCGT project in Gdańsk. The location of the CCGT unit will not only enable the supply of electricity to the national power system, but also a direct connection with the Lotos refinery and meeting its process heat requirement.

Under a letter of intent signed by Energa, Lotos and PKN a joint team was appointed that worked on identifying all the input data necessary for the design process. Negotiations were also held on how utilities are to be supplied and billed, as well as on a business model that could be employed in the project. The unit’s planned net capacity is approximately 450 MW; it is to be a cogeneration unit that will produce process heat. In 2022, conceptual work will continue, taking into account a potential new ownership structure of the refinery.

In line with its strategy and ambitions to achieve carbon neutrality by 2050, the ORLEN Group invests in low- and zero-carbon stable and innovative power generation capacities. In December 2021, PKN ORLEN and Synthos Green Energy signed an investment agreement to set up a joint venture, ORLEN Synthos Green Energy, Whose key aim is to prepare and commercialise small modular reactor (SMR) technology, particularly GE Hitachi Nuclear Energy’s BWRX-300 reactors, in Poland. Energy from SMRs can be used in the production of clean electricity and heat, generation of energy and process heat used in refining and petrochemical operations, and hydrogen production. Development of small (SMR) and micro (MMR) modular reactor technologies can bring many benefits to Poland’s economy, including, first and foremost, strengthening energy security. It will also drive the development of innovative industry and create new jobs in attractive sectors of the economy. The initiative also addresses climate challenges of the future and the EU’s ambitious emissions targets. Work is well in progress on SMR and MMR technologies in the United States, the UK, South Korea, France and Canada.

The new joint venture ORLEN Synthos Green Energy has been set up to commercialise micro and small modular reactor technologies, with a focus on GE Hitachi Nuclear Energy’s BWRX-300 reactors. The wide array of activities the company is to carry out under the agreement includes promoting the technology, supporting the development of a relevant legal framework, exploring potential reactor sites, implementing joint projects and, ultimately, generating energy and heat using the technology for own, municipal and commercial needs.

Nuclear will be one of the cheapest energy generation sources. PKN ORLEN plans to deploy the first reactor in Poland by 2030. A letter of intent has already been signed to outline the terms on which the first reactors would be supplied to Poland. Investment in SMRs and MMRs would support further rapid growth of the ORLEN Group, helping it to significantly reduce carbon emissions. Modular reactors would be an attractive addition to the energy portfolio based on renewable energy sources and natural gas. Accelerated deployment of SMRs will allow PKN ORLEN to better balance its generation asset portfolio and build a low-carbon and innovative energy generation segment. PKN ORLEN’s priority is to harness the potential of the Polish economy and local suppliers.

The BWRX-300 reactor is an evolution of the technology developed by GE, a US-based group with extensive experience in the field, 30 years’ market presence in Poland and a massive supply chain in the country, comprising over 3,000 companies. Some of them already manufacture components for nuclear power plants abroad. “The BWRX-300 is an innovative, clean energy system that is based on proven technology, and represents an ideal solution to retrofit Poland’s large fleet of coal generation,” GE Hitachi Nuclear Energy Executive Vice President Jon Ball said.

Development of renewable energy sources is an element of PKN ORLEN’s energy strategy. The end of 2019 saw the launch of the Group’s solar photovoltaics programme, which will involve the development and coordination of solar PV projects across the ORLEN Group.

PV Wielbark – as part of the Energa OZE acquisition process, Energa’s subsidiary of the ORLEN Group acquired 12 MW of installed capacity in two installations built on an area of approximately 27 ha. Energa RES also purchased land in advance for further installations with a capacity of 48 MW, which it plans to acquire by mid-2023. The target installed capacity of the entire farm is 62 MW, located on approximately 119 ha.

In its initial stage, the Group selected locations satisfying the relevant technical criteria for potential installation of PV units, and contracts were signed with a supplier to provide project documentation for six locations (production plant in Płock: 4.8 MW, production plant in Trzebinia: 1MW, fuel terminals – Żurawica: 1.6 MW, Sokółka: 1.25 MW, Ostrów Wielkopolski: 3MW, and Anwil site: 10MW). Comprehensive technical documentation, including final building permits, was secured for four of the above locations, owned by PKN ORLEN (the production plant in Płock, Sokółka, Żurawica and Ostrów Wielkopolski). An open procurement procedure was launched on the Connect platform for the Sokółka project. At the same time, a procurement procedure is being prepared for the Żurawica, Płock and Ostrów Wielkopolski locations. The Płock and Ostrów Wielkopolski locations have applied for co-financing from the National Fund for Environmental Protection and Water Management (NFOŚiGW). Currently, work is also under way to develop the documentation for a property in Rybnik, owned by ORLEN Południe, which is another project for which NFOŚiGW co-financing is sought. Furthermore, steps were taken to construct micro PV installations at PKN ORLEN’s service stations. The procurement procedure is in progress. More properties and land owned by the ORLEN Group which could be used for the construction of solar PV farms are reviewed on an ongoing basis. As part of those efforts, a wildlife survey is to be performed at the Trzebiatów and Psary Polskie locations.

The development of renewable energy projects is also the responsibility of Energa Green Development, a company of the Energa Group established in 2021, whose operations will focus on preparing new projects, from the phase of developing the project concept and obtaining legal title to land, through the design work, to obtaining the building permit. In addition, EGD will be the centre of competence in investment project supervision at the stage of project implementation. The company will actively participate in engaging contractors and procuring the supply of PV system components. It will also act as project sponsor or otherwise as substitute project sponsor or contract engineer supervising the construction until the system is put in operation. The Company’s primary goal will be to develop new greenfield projects with a capacity of 240 MW, with building permits secured, by 2025.

energa_przygotowana_na_upaly_ energa_przygotowana_na_upaly_

Logistics assets

Electricity distribution is part of the ORLEN Group’s core business. This activity is regulated in Poland and it is based on tariffs approved by the President of the Energy Regulatory Office (URE). Energa Operator S.A. is the leading entity within this business line. The Group’s distribution assets are located in northern and central Poland. The Group uses them to supply electricity to 3.2m customers, of which approximately 3.1m have signed comprehensive agreements and 175,000 are TPA (third party access) customers.

As at the end of 2021, the total length of the Group’s power lines exceeded 193 thousand km and covered almost 75 thousand sq. km, i.e. about one-fourth of the area of Poland.

Since 2020, the ORLEN Group’s distribution business has been promoting and pursuing a strategy adopted by the European Union that involves energy decarbonisation and reduction of emissions from transport, especially in urban areas. The key activity undertaken by Energa Operator S.A. with this aim in mind is the construction of 279 EV charging stations in eight cities: Gdańsk, Gdynia, Koszalin, Elbląg, Olsztyn, Płock, Toruń and Włocławek. 2021 saw completion of all of the charging stations, of which 273 were handed over to the Public EV Charging Stations Operator by the end of 2021. The remaining six stations are to undergo testing by the Polish Office of Technical Inspection (UDT). Charging stations and electric vehicles using the stations will not only increase the demand for electricity in the Polish Power System (replacing hydrocarbon fuels), but also, due to their built-in energy storage, are likely to become a participant of the balancing market in the future relying on the V2G technology, i.e. two-way electricity flow at charging stations.

See also

Search results