Operating results
The economic slowdown in 2023 (GDP grew 0.2% y/y, industrial production fell 1.5% y/y) translated into lower domestic electricity demand (-3.4% y/y). In addition, an increase in renewable and gas-fired energy production in the National Power System and higher energy imports significantly translated into a decrease in production at PGE Group coal units.
Net energy production at PGE Group units overall fell by 14% y/y in 2023, including a 25% y/y decline at lignite units. In 2023, the PGE Group recorded a 5% increase in the volume of distributed energy mainly due to the acquisition of companies in the Railway Energy Services segment. In PGE Distribution, there was a decrease in the volume of distributed energy in total by about 3% y/y. Sales to PGE Group end users in 2023 increased by 1% due to the acquisition of PKP Energetyka (Railway Energy Services segment). Without the effect of the acquisition, volumes were 5% lower, with declines seen in tariffs for business customers. The 4% decline in heat sales was mainly due to 0.7 oC higher average outdoor temperatures in 2023.
| TWh | 2023 | 2022 | r/r |
|---|---|---|---|
| Total production, including: |
56.77 | 66.13 | -14% |
| lignite | 29.79 | 39.60 | -25% |
| hard coal | 18.84 | 20.55 | -8% |
| natural gas | 4.21 | 2.79 | 51% |
| pumped-storage | 1.20 | 0.95 | 26% |
| hydro | 0.44 | 0.39 | 13% |
| wind | 1.77 | 1.57 | 13% |
| biomass | 0.46 | 0.25 | 84% |
| municipal waste | 0.03 | 0.03 | 0% |
| photovoltaics | 0.03 | 0.00 | – |
We measure generation volumes in two ways. By type of fuel and by generating unit. Some of our units are multi-fuel (e.g. small amounts of are co-fired as supplementary fuel in coal-fired power plants). Total production from renewable energy sources in the PGE Group amounted to 2.73 , 22% higher year-on-year. The volume of electricity production from renewable sources is calculated as the sum of production from wind, hydro, waste-to-energy plants and (including at conventional power plants). The increase in volume was mostly accounted for by higher production from wind and CHP plants. Electricity produced at pumped storage plants (ESPs) is not classified as RES production (it is actually storage).