Energy 14 April, 2020 11:00 am   
COMMENTS: Mateusz Gibała

PGE closes projects outside its core business

The Management Board of PGE Polska Grupa Energetyczna decided to close projects with unsatisfactory rate of return, in particular those not directly related to the core business of the Group, and obliged all PGE Group companies to optimization and rationalization activities.

The decision taken by the Management Board of PGE results from the review of projects carried out in the PGE Group in terms of their legitimacy, profitability, efficiency and usefulness, announced by Wojciech Dąbrowski, President of the Management Board of PGE Polska Grupa Energetyczna.
The Management Board obliged all companies of the PGE Group to immediately undertake optimization and rationalization actions and to focus on tasks directly related to their activities in consultation with PGE Polska Grupa Energetyczna S.A. – says Wojciech Dąbrowski, President of the Board of PGE Polska Grupa Energetyczna.

The Management Board of PGE also recommended that the companies of the PGE Group should strive to increase their margins, reduce training expenses and review their sponsorship projects in terms of their legitimacy and image value for the PGE Group.

At the same time, the Management Board of PGE stipulates that the restrictions do not apply to financial support for systemic assistance to hospitals and medical facilities in the fight against COVID-19 conducted by the government administration.

The Management Board’s decision is related to the results of the analysis of benefits of projects implemented in the PGE Group and changes in the economic, social and business environment of the power industry. The Management Board of PGE was primarily guided by the financial and operating results of the PGE Capital Group for 2019, in particular the net result, which amounted to PLN -3.9 billion, the stock exchange listing of PGE shares on the Warsaw Stock Exchange, as well as the negative impact of the coronavirus epidemic on the economic situation in Poland and in the world, with particular emphasis on electricity consumption.

At the same time, the Management Board maintains the implementation of the announced measures, i.e. maintaining the leader’s position in onshore wind energy in Poland, also thanks to acquisitions, as well as achieving the leader’s position in offshore wind energy. The PGE Group also wants to strengthen the district heating sector and develop this area to maintain its leading position in this market. The project to build a new CHP plant in Czechnica is at the most advanced stage of preparation for implementation.

Currently, works on the construction of onshore wind farms with a total capacity of over 97 MW are being finalised. The project will increase the installed capacity of PGE wind farms by 18%, to 647 MW.

In parallel, an offshore wind farm development project is being implemented. The plans of the PGE Group are to reach 2.5 GW by 2030. PGE is also implementing the PV Programme, which assumes the construction of photovoltaic installations with a total capacity of 2.5 GW by 2030. The PGE Group is also continuing work related to the construction of two new CCGT units with a total capacity of 1400 MW in the Dolna Odra Power Plant. The Group also plans to increase the number of Waste to Energy Plants, which allow the production of electricity and heat from waste and at the same time solve the problem of waste management. The PGE Group also focuses on energy storage and management of coal combustion products (CCPs), which means intensification of activities aimed at closed-loop management.