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“A high degree of energy self-sufficiency – understood primarily as the sufficiency of domestic generation capacity, and secondly as the lack of dependence on energy imports and energy carriers – strengthens the resilience of the state,” the Government Plenipotentiary for Strategic Energy Infrastructure Anna Trzeciakowska told BiznesAlert.pl.
Minister, I would like to begin by congratulating you on your appointment as the Government Plenipotentiary For Strategic Energy Infrastructure. What are your goals in this position and how do you see your priorities?
Thank you. I am taking on a new role, but I will continue to pursue many activities that I have been handling up until now at the Ministry of Climate and Environment, especially when it comes to the power industry and gas. Since I am responsible for the oversight of the Polish Nuclear Power Plants (PEJ), an investor company within the framework of the government’s Polish Nuclear Power Program (PPEJ), first of all I want to fully immerse myself in this area, in which I have not yet taken full part. I will devote my attention to both “large” reactors and small modular units (SMRs), because I would like to identify and effectively use all areas of potential synergy between the numerous planned and implemented projects in Poland. This is the most urgent issue for me. The second priority is to ensure that the investments made by PSE (Polish grid operator – ed.) will enable us to ambitiously transform the energy system-to change the mix, optimally integrate renewables, including primarily offshore, “plug in” large-scale and “small” atom and effectively balance the work of the national system against the challenges arising from the growing share of non-controllable sources in it. I want to systematically facilitate investments in the network, not only through financing or special acts, but also the development of investment competencies of the transmission system operator itself and its active participation in licensing processes and dialogue with the local community – I am aware that investments in the network can cause concern to residents and their voice must be duly taken into account. I will also encourage all stakeholders to find new solutions to ensure the stability of the electricity system before large-scale energy storage technologies are commercialized or the hydrogen economy develops. Of course, I do not lose sight of the gas and oil sector, although my predecessors have done a lot of work in these areas and today we can talk about Poland’s almost complete independence from the supply of these hydrocarbons from the Russian Federation.
Let’s start with the atom. What is left to negotiation on the nuclear power plant in Pomerania?
We have a clear plan for the coming months: first of all, it is the completion of the contract negotiations for the design of the power plant. Polish Nuclear Power Plants will sign this contract as an investor with a consortium of companies – Westinghouse-reactor supplier, and Bechtel-the main contractor, Westinghouse’s partner in the American Vogtle project, which is a sister plant to the one that will be built in Pomerania. After the Council of Ministers adopted a resolution on the financing of this investment two weeks ago, in the coming months we will work within the government administration on its implementation. In particular we will focus on the development of provisions to grant guarantees from the state treasury and the so-called state budget support mechanism that will allow us to effectively implement this project, so that the cost of energy from the power plant is as low as possible. It is a matter of our economic development, competitiveness and real bills paid by Poles. In parallel, we will engage in a dialogue with the European Commission in order to honor any commitments from the perspective of EU legislation. The national permit process is at an advanced stage and we do not expect problems here, especially since the so-called cross-border consultations in the process of obtaining an environmental decision are taking place in a good, substantive atmosphere and are slowly coming to an end. The company immediately responds to all calls from the Director General of Environmental Protection and hopes to receive this decision later this year.
These are the most important elements for the near future, but we are already thinking about the next stages of this extremely complicated investment. We support the development of human resources and domestic industry, so that they can participate in this investment in a meaningful way, and consequently more effectively compete on similar projects around the world. We also need to work out a path of cooperation with an experienced power plant operator – in Poland we do not have these competencies and in this key issue – also from the perspective of the safety of our power plant – we want to reach for the best, world-class experience.
And how is the construction of nuclear infrastructure progressing?
We are moving according to plan – in the near future the Council of Ministers is planning to adopt a resolution on a programme to support infrastructure investments in connection with the implementation of key investments in strategic energy infrastructure, including the nuclear power plant, in the Pomeranian Voivodeship, which will provide financing for rail, road and maritime investments. PEJ and the entities responsible for the implementation of the accompanying infrastructure, i.e. PKP PLK, GDDKiA, the Maritime Authority in Gdynia and PSE have established the rules of coordination of all these investments within the statutory period. The rules are currently subject to approval, however, the entities are not waiting for the formalities to be completed, but have proactively joined the cooperation – research and obtaining the first permits are underway. The beneficiary of this infrastructure will not only be the power plant – it will also be used by residents of the region, tourists or other investors, including wind farm developers.
Let’s move on to the challenges of the electricity market today. How to ensure the integration of RES in the system?
The integration of renewable energy sources requires, first of all, ensuring an adequate volume of available capacity, and therefore investment in new generation capacities such as nuclear power plants, gas power plants, including biogas and hydrogen technologies, the construction of new energy storage facilities in various technologies accompanying renewable energy sources, as well as the development of transmission and distribution networks. With regard to the last point, it is worth emphasizing that the transmission network development plan for 2023-2032 published in November 2022 by Polskie Sieci Elektroenergetyczne fits into the ongoing energy transformation of the country and assumes the implementation of investments that will include further integration of renewable energy sources, along with offshore wind. In addition to the purely investment aspect, the integration of RES also requires the development of market mechanisms that will properly handle periods of energy oversupply, i.e. solutions that will stimulate an increase in energy consumption or a reduction in its production in order to balance the National Electricity System and to ensure its safe operation.
Will Poland develop new cross-border connections, and will it take part in the construction of the Baltic energy ring?
This question is a good opportunity to make clear how Poland views energy security, because despite the Russian aggression, it is difficult to notice a fundamental paradigm shift when it comes to these issues in the European Union. Our point of view comes from the awareness that a high degree of energy self – sufficiency – understood primarily as the sufficiency of national generating capacities, and secondly as the lack of dependence on energy imports and energy carriers-strengthens the resilience of the state. Interconnectors between the energy systems of neighbouring countries are important for the functioning of the common energy market in the EU, but also from the perspective of solidarity, emergency support in exceptional situations. But interconnections alone will not ensure energy security.
It’s a starting point. At the same time, over the next decade and a half, we want to completely rebuild Poland’s energy system. We need to replace the decommissioned coal capacities with low – and zero – emission ones, diversifying the Polish energy mix and basing it on nuclear and renewable energy plants-in particular the most stable ones, i.e. offshore wind farms in the Polish part of the Baltic Sea. This is our priority.
Let’s move on to the gas sector. There has been a lot of talk lately about whether we should accelerate the FSRU project. Is that still a priority?
I am not sure if talking about “accelerating” the FSRU is the best term, because this project is already on a fast track. We are considering the possibility of increasing the planned capacity of the floating terminal in Gdańsk, but this will be determined by the situation on the gas market – we still have to wait a while for confirmation of the demand for the regasification service. On June 6, Gaz-System began the second phase of the Open Season procedure for the first ship, and after its completion, we will make decisions on the possible extension of the FSRU project to a second ship. It should be remembered that the previous year was a huge blow for this market – due to the huge price fluctuations and the resulting uncertainty, some of the final customers changed their plans for gas consumption, and as a result, we had to update our projections for consumption in the coming years. However, the reality is that gas is and will be used, as evidenced by the investment plans of Polish energy companies, and today there is no real alternative for it. Therefore, the FSRU project remains the government’s – and mine-priority.
What about the role of renewable gases in the transmission system? How will biomethane be supported by the operator?
The role of renewable gases will surely grow, there is no doubt about that. Gaz-System’s latest strategy fits into these trends, in which one of the most important elements is to prepare for the transmission of biomethane, as well as hydrogen. However, it must be remembered that it is not the operator that will produce and trade renewable gases, and it is not in the transmission system that the greatest obstacles must be overcome in order to develop the renewable gas sector.
Finally, I will ask about the oil sector – Russia’s aggression in Ukraine revived the plans for developing oil infrastructure. What will be the future of the Friendship Oil Pipeline after the invasion, and will the Odessa-Brody-Gdańsk pipe be built?
Poland is seeking to impose EU sanctions on the northern strand of the Friendship Pipeline, which will exclude the supply of oil using onshore infrastructure from the East for refineries located in Poland and Germany. However, it is already a marginal source of supply – Polish refineries are supplied with oil imported by sea using the Gdańsk naftoport. Naftoport’s current transshipment capacity allows for deliveries of raw materials to refineries in Gdańsk and Płock and the German Leuna refinery, with which Poland is bound by a guarantee agreement. The issue of oil supplies to the German refinery Schwedt is the subject of Polish-German talks. At this point, it should be emphasized that Poland plans to expand the transhipment capacity of oil imported by sea. A new station for transshipment of oil and petroleum products will be built at the naftoport. It will be capable of receiving the largest tankers in the Baltic Sea.
Regarding the construction of the Odessa-Brody-Gdańsk oil corridor, and in fact the Brody-Adamowo section, because only this bit is missing, it is necessary to determine the future of the oil sector of Ukraine. Since Russia destroyed Ukrainian refineries, the country is forced to import finished oil products from neighboring countries, including Poland. Ukrainian ports in the Black Sea are blocked. We do not know if this situation will continue after the end of the war. If the Ukrainians decide to rebuild the destroyed refineries, then it will be possible to return to talks on new oil supply routes. Poland is ready to support Ukraine in this regard.
Interview by Wojciech Jakóbik
