A new strategy until 2030 with an outlook to 2050, ordering of assets, reduction of debt by over PLN 2 billion, and preparing the PGE Group for transition – these are the main actions taken by PGE's Management Board in 2020.
PGE appeals in Brussels for a fair revision of the ETS system and more funds for the energy transition
Vice President of the Management Board of PGE for Regulatory Affairs Wanda Buk together with Deputy Climate Minister Adam Guibourgé-Czetwertyński took part in the international EnergyPost.eu conference devoted to the role of the EU ETS system in the European Union's climate policy until 2030. The conference's debates focused on the upcoming revision of the EU Emissions Trading System (ETS).
For the National Recovery Plan, PGE has prepared 24 projects worth PLN 74 billion, 80 percent of which is to be invested in renewable energy sources. On 26 February the government presented a draft of the National Recovery Plan and forwarded it for public consultations. The draft document includes a number of investment initiatives aimed at supporting the recovery of Polish economy after the pandemic.
Due to the considerations of the power and district heating system in Poland, we need investments in gas installations in order to achieve climate neutrality, while treating gas as a transitional technology - said Paweł Strączyński, Vice-President for Finance of PGE Polska Grupa Energetyczna, during the event "EU TAXONOMY: finding the right balance for a successful Transition" held by the Brussels-based Energy Post. The event took place on 22 February 2021. Nancy Saich from the European Investment Bank, a member of the Platform on Sustainable Finance, Dr Mirosław Groszek, former member of the European Commission's High-LevelExpert Group on Sustainable Finance, Ian Simm, CEO and founder of Impact Asset Management and Czech MEP Ondřej Knotek from the Renew Group also took part in the discussion on sustainable financing of energy investment projects.
Ørsted and PGE Polska Grupa Energetyczna (‘PGE’) have signed an agreement to form a 50/50 joint venture for the development, construction and operation of two offshore wind projects in the Baltic Sea with a total potential capacity of up to 2.5 GW.
The cost discipline and expenditure optimization introduced by the PGE Management Board on the scale of the entire PGE Group is beginning to bring the first visible financial effects. According to the assumptions of the new Strategy, in the coming years the value of the Group will be built on the basis of the distribution segment and dynamic development of renewable energy sources.
PGE Polska Grupa Energetyczna has published a new strategy. The company presented the Group's transformation plan and the path to decarbonisation of generation and announced the goal of achieving climate neutrality by 2050. Already within a decade, the PGE Group will become a completely different company," announces Wojciech Dąbrowski, President of the Management Board of PGE.
PGE Polska Grupa Energetyczna signed a letter of intent with the State Treasury, regarding the acquisition of 100% of shares in PGE EJ 1 by the State Treasury.
On 30 September 2020, as part of the Pomeranian Offshore Wind Conference, a press breakfast was held with Wojciech Dąbrowski, President of the Management Board of PGE Polska Grupa Energetyczna, and invited guests.
On 29 September this year, the Security Forum Szczecin conference was held in Szczecin, whose strategic partner was PGE Polska Grupa Energetyczna. One of the participants of the Forum was the President of the Management Board of PGE Wojciech Dąbrowski. The theme of the event was the participation of Polish industry in the Baltic Sea wind farm construction programme.
The PGE Capital Group publishes its financial and operating results for the first half of 2020. The results achieved in the lignite/hard coal power generation segment confirm the correctness of the Group's transformation towards low- and zero-carbon emissions. In the autumn of 2020, the Group will present its new strategy indicating the directions of development of Poland's largest power utility for the next 10 years with an outlook to the year 2050.
The PGE Capital Group publishes its financial and operating results for the first half of 2020. The results achieved in the lignite/coal power generation segment confirm the correctness of the Group's transformation towards low- and zero-carbon emissions.
- The reported EBITDA of the PGE Group in H1 2020 amounted to PLN 2.8 billion. The decrease was mainly due to one-off factors such as additional CO2 emission allowances for the previous year and higher levels of the land rehabilitation and actuarial provisions in H1 2020.
- The recurring EBITDA of PLN 3.1 billion was at the level similar to that of last year in the absence of any significant impact of COVID-19 on H1 2020.
- The lower results of the Conventional Power Generation segment (EBITDA of PLN 774 million, a 63% year-on-year decrease) and the Heat Generation segment (EBITDA of PLN 493 million, a 36% year-on-year decrease) were caused mainly by a reduction in the number of free CO2 emission allowances and their higher purchase costs.
- The volume of power generated from conventional sources was slightly lower (27.2 TWh, a 4% year-on-year decrease). The decrease was partly offset thanks to power generation from the new units in the Opole Power Plant.
- The Renewable Power Generation sector recorded a slightly lower result (EBITDA of PLN 301 million, a 3% year-on-year decrease) in consequence of lower market prices of electricity, adjusted by increased power generation from wind farms (0.78 TWh, a 15% year-on-year increase).
- The lower result of the Distribution segment (EBITDA of PLN 1.1 billion, a 7% year-on-year decrease) was caused by a general decrease in demand for electricity in the National Power System (KSE) following the outbreak of the COVID-19 pandemic.
- The lower result of the Trade segment (EBITDA of PLN 187 million, a 60% year-on-year decrease) was caused mainly by lower electricity sales in consequence of a fall in demand.