As at December 31, 2021, PGE Group committed to incur capital expenditures on property, plant and equipment of approximately PLN 6,852 million. These amounts relate mainly to construction of new power units, modernisation of Group’s assets and purchase of machinery and equipment.
| As at December 31, 2021 |
As at December 31, 2020 |
|
|---|---|---|
| Conventional Generation | 256 | 5,790 |
| Distribution | 1,058 | 1,346 |
| District Heating | 1,549 | 190 |
| Renewables | 414 | 185 |
| Supply | 1 | 3 |
| Circular Economy | 4 | – |
| Other activity | 3,570 | 175 |
| TOTAL FUTURE INVESTMENT COMMITMENTS | 6,852 | 7,689 |
The most significant future investment commitments concern:
- Other activity – construction of two CCGT units and service agreement for two gas turbines – approximately PLN 3,429 million (as described in note 1.3, on October 1, 2021 this commitment, together with the entire organised part of enterprise, was transferred to PGE Inwest 8 sp. z o.o. as part of the division of PGE GIEK S.A.),
- District Heating – construction of gas-and-steam CHP Nowa EC Czechnica in Siechnice – approx. PLN 1,141 million,
- Distribution – investment commitments mainly related to grid assets with the total value of approximately PLN 1,058 million,
The increase in future investment commitments in the Renewables segment results from the start of a joint offshore project, as described in note 33.3.