Strategy implementation
Key indicators and activities related to the implementation of the strategy for the strategic priority of “Environmentally friendly energy”:
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Objectives
Construction of offshore wind farms: 2.5 GW by 2030 and more than 6.5 GW by 2040
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Actions and results in 2023
- Completed works at Baltica 1:
- An interim report on environmental studies was received.
- The first year of studies, including measurements of windiness, sea waves and currents, was completed and an application for an environmental decision was submitted to the Regional Environmental Protection Directorate.
- An application for an environmental decision for an offshore wind farm connection area was submitted to the Regional Environmental Protection Directorate. A decision on the scope of an Environmental Impact Assessment (EIA) report for the offshore wind farm area is pending.
- A decision on the scope of an EIA report for power evacuation was obtained.
- The Ministry of Climate and Environment approved the Geological Works Project for land-sea drilling operations.
- The contracting of geotechnical and geological works is underway.
- Completed works at Baltica 2:
- Suppliers of the main components of the offshore wind farm (foundations, cables, turbines, offshore energy station) were selected; supply contracts and first installation contracts for cable laying were signed.
- The contracting of the General Contractor for the onshore part, the chartering of installation vessels for offshore wind turbines and the installation of foundations and offshore substations.
- Due diligence reports needed to initialize so called Bank Launch (what took place in January 2024) and to carry out credit process leading to an investment decision are being prepared.
- Works are underway to sign final agreements with the strategic partner Ørsted on the terms of cooperation during the construction and operation phases.
- Completed works at Baltica 3:
- Construction permits for the onshore transformer station and the onshore section of the cable bench were received.
- The geological and engineering documentation for the power generation evacuation area was submitted to the Ministry of Climate and Environment.
- All expert opinions on the impact of the offshore wind farm in terms of operational safety were approved.
- The final construction permit for the offshore part of the power evacuation system (export cable, interlinks) was received, thus providing a complete set of construction permits for the evacuation of power from the project in both the offshore and onshore areas.
- Completed offshore wind farm development works:
- The companies in the Offshore Power Generation area received valid and final permits for the construction of artificial islands in the following sea areas: 43.E.1, 44.E.1, 45.E.1, 60.E.3 and 60.E.4.
- Total potential capacity of wind farms planned for construction in the new areas: approximately 3.9 GW.
- Completed works at Baltica 1:
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Objectives
Development of onshore wind farms: > 1 GW in new capacities by 2030
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Actions and results in 2023
- Capacity of projects in the pipeline: approximately 500 MW.
- The acquisition of the Zalesie wind farm with a capacity of 25 MW in the Warmińsko-Mazurskie Province with an average annual generation of 75 GWh.
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Objectives
PV development program > 3 GW installed capacity in 2030
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Actions and results in 2023
- Installed capacity in 2023: approx. 45 MW.
- Approximately 355 MW under development.
- Land secured: approx. 4 000 ha.
- Analysis of acquisition projects: approx. 1.9 GW
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Objectives
Construction of 800 MW in energy storage systems by 2030
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Actions and results in 2023
- Signing of a connection agreement for a hybrid energy storage facility in Żarnowiec.
- Expected non-refundable EUR 200 million support under the National Recovery and Resilience Enhancement Plan adopted by the EU Council in December 2023 and the energy storage system measure for a large-scale energy storage facility in Żarnowiec.
- Award of a PLN 43 million grant for PGE Dystrybucja S.A. from the Modernisation Fund for 3 grid storage facilities with a power of 7 MW and capacity of 19 MWh.
- Acquisition of conditions for a 400 MW connection to an energy storage facility in Gryfino.
- Achievement of approximately 90 MW in distributed energy storage facilities.
- Development of approx. 20 hybrid energy storage projects with a capacity of over 500 MW.
- Development of an energy storage project at the Kraków CHP plant with a capacity of approx. 90 MW.
- Analysis of the possibility of using energy storage facilities to support the reliable and safe supply of green energy to the Polish railways.
- Completed works on the development of the Młoty pumped storage power plant project:
- Acceptance of the feasibility study, which demonstrates the technical and economic viability of the construction of a pumped storage power plant.
- Completion of a full 12-month natural inventory.
- Signing of an investment agreement with the National Environmental Protection and Water Management Fund to finance the construction of the Młoty pumped storage power plant.
- Submission of an application to PSE S.A. for determination of grid connection conditions.
- Conducting a survey among residents regarding support for the investment project (almost 60% of the participants support further implementation of the investment).
- Signing of voluntary property valuation agreements for the planned Młoty investment project with more than half of the residents.
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Objectives
District-heating transition: Share of zero- and low-carbon sources in heating production at approx. 70% by 2030
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Actions and results in 2023
- Development of a decarbonisation plan for the District Heating segment by 2050.
- New Czechnica CHP plant: commissioning of the reserve and peak load boiler plant. Continued construction of the CCGT unit.
- Gdańsk CHP plant: further works on the construction of a heat pump and heat accumulator.
- Gorzów CHP plant: completion of the installation of a steam and water boiler. Initiation of the hot start-up of the boilers. Acquisition of an operation permit for the reserve and peak load boiler house and an integrated permit for the new boiler plant.
- Zgierz CHP plant: the commissioning of the new CHP plant.
- Gdynia CHP plant: the opening of bids in the tender for the General Contractor responsible for engines and the construction of a gas pipeline. Continuation of the construction works on water boilers.
- Kraków CHP plant: further works on the construction of a heat pump and cogeneration units. Continuation of preparatory works relating to a gas pipeline.
- Lublin Wrotków CHP plant: further works on the construction of the reserve and peak boiler plant, the commencement of preparatory works on the construction of a large-scale heat storage facility.
- Rzeszów CHP plant: the continued construction of the reserve and peak load boiler plant, the continuation of the works on the construction of the second line of the thermal waste processing with energy recovery (TWPER) installation. Conclusion of the procedure for the selection of a contractor for the construction of a photovoltaic farm.
Key indicators and activities related to the implementation of the strategy for the strategic priority of “Modern energy services”:
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Objectives
Access to green energy for PGE Group customers
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Actions and results in 2023
- Sale of PV installations up to 50 kWp with a total volume of 12.6 MWp; 310 sales agreements.
- Supplementing the “Photovoltaics with PGE” offer with a referral programme.
- Introduction of a new offer: “PV for a tenner” based on the “own payment + 0% instalments” model.
Completed works in the Railway Energy Services segment:
- Commissioning of an on-grid hydrogen storage facility based on an electrolyser, pressure storage facility and a fuel cell system.
- Cooperation with the Łukasiewicz-Poznański Institute of Technology and launch of a project for the modernisation of the railway system service vehicle (WM-15A), including the introduction of elements of a hydrogen supply system.
- Implementation of the Green Railways programme, under which 101 GWh of renewable energy was sold. In addition, a letter of intent was signed with the largest passenger carrier PKP Intercity for the implementation of the Green Railways programme.
- Support for end users in the utilisation of RES – conclusion of agreements for the collection of surplus electricity from RES installations owned by end users with a total installed capacity of 1.2 MW (installations outside the prosumer model).
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Objectives
Highest customer satisfaction score on the market maintained
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Actions and results in 2023
- PGE Obrót S.A. took the first place in the Consumer Satisfaction Index ranking in both the G tariff – 89.1% and the C tariff – 84.2%.
- Maintained leading position in the customer service process with the following results:
- 1st place in the G tariff – category: overall satisfaction with the Contact Centre,
- 2nd place of the Customer Service Office in the G tariff – category: overall contact satisfaction.
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Objectives
Profitability increase in energy services
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Actions and results in 2023
Completed works in the District Heating segment:
- Nearly 1 000 buildings with a total thermal power demand of 210 MWt in 16 cities were connected to district heating networks.
Completed works in the Railway Energy Services segment:
- “The Strategy for the Implementation of the Charter for the Efficient Transformation of the Distribution Network in PGE Energetyka Kolejowa S.A.” was submitted to the President of the Energy Regulatory Office.
- 1,500 documents determining conditions for connection to the distribution network were issued, 840 customer connection agreements were concluded for the combined capacity of 87 MW and 35 generator connection agreements were concluded for the combined capacity of 60 MW.
- Sales were maintained at a level of 100% of the energy consumed by rail operators for transport purposes.
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Objectives
Shorter interruptions in energy supply
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Actions and results in 2023
Completed works in the Distribution segment:
- Achievement of the set targets for the reduction of the duration of supply interruptions specified in minutes for the following areas: cities with district rights (40.52), cities (91.76), countryside (351.49), and the frequency of interruptions for the area of cities with district rights (0.81). Only two indexes were not improved: frequency of interruptions in the areas of countryside (6.42) and cities (1.77).
- Work support activities: purchase of insulated boom lifts and mobile poles for works on live wires – medium voltage power lines.
- Organisation of training courses for personnel involved in works on live wires – medium voltage power lines (including the method of electro-insulating gloves).
- Introduction of revised and new instructions for works on live wires.
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Objectives
Development of activities in the individual segment (district heating sector)
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Actions and results in 2023
- Introduction of a sales offer for the supply, installation and commissioning of heat pumps within the PRO-EKO product portfolio entitled: “Heat Pumps from PGE”.
Key indicators and activities related to the implementation of the strategy for the strategic priority of “Efficient and effective organisation”:
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Objectives
Optimisation of asset maintenance costs
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Actions and results in 2023
Completed works in the Distribution segment:
- Unification of the principles of asset maintenance planning and preparation of a detailed operating plan for the specialist departments in the Branches.
- Development and implementation of guidelines aimed at concluding tree felling contracts in the year prior to felling, in order to optimise asset operation.
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Objectives
Enhanced capability in remote customer service
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Actions and results in 2023
- Maximisation of customer self-service in the Contact Centre and increased automation of processes – the possibility for the customer to self-check their balance and confirm contractual details in the Interactive Voice Response (IVR) system.
- Simplification of the offer acceptance process in remote channels. Acceptance of offers in the first contact with the customer.
- More than 2 million customers receiving eInvoices.
- Development of electronic sales channels with traction customers (65% of customers using the eInvoice).
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Objectives
25% of financing for investment program raised from preferential sources
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Actions and results in 2023
- Acquisition of approximately PLN 354 million in preferential funding, including approximately PLN 276 million in subsidies for PGE Dystrybucja S.A.: the supply of power to the Stalowa Wola Euro-Park site for the development of electromobility (PLN 148 million); the Remote Reading Meters Programme (PLN 84 million); the construction of three energy storage facilities: Warta, Jeziorsko and Cisna, to stabilise grid operation (PLN 43 million).
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Objectives
Unified organisational structure and management system
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Actions and results in 2023
Completed works in the Railway Energy Services segment:
- Updating of the principles of developing internal regulations and process model documents in line with the requirements of the Integration Programme.
- Adjustment of the principles of the Integrated Management System to changes resulting from integration with the PGE Capital Group.
- Updating of the Integrated Management System Policy.
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Objectives
IT
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Actions and results in 2023
Completed works in the Distribution segment:
- Further works within the Technical Programme for Distribution Assets Management – works related to the Geographical Information System (GIS) and Enterprise Asset Management (EAM) components.
- Completion of procurement procedures under the LTE450 Programme – the performance of the agreements signed under already completed procedures; the planned launch of the service in November 2024 with subsequent successive expansion of coverage in subsequent months.
- Completion of the procedure for the building of the Central Power Management headquarters together with internal and external infrastructure.