Despite the constraints caused by the global pandemic, we are pursuing our investments on the road to transforming the Polish energy industry.
In 2021, PGE Group’s capital expenditures reached approx. PLN 4.7 billion (down 15% year-on-year).
* In Q4 2021, the project to build units at the Dolna Odra plant was transferred from Conventional Generation to Other Activity (along with all capital expenditure incurred in the previous quarters of 2021).
Approx. 54% of expenditure in Conventional Generational, District Heating, Renewables and Other Activity (production capacities) and Distribution was for new projects and approx. 46% for modernisation and repairs.
| Key projects | CAPEX in 2021 |
|---|---|
| Construction of gas-and-steam units at the Dolna Odra plant | PLN 751 million |
| Construction of unit 7 at Elektrownia Turów | PLN 543 million |
| Modernisation of distribution assets | PLN 692 million |
| New projects in the Distribution segment | PLN 665 million |
The construction of unit 7, with a capacity of 496 MW, at the Turów plant was completed in May 2021. It is a supercritical unit, fired with lignite from the nearby Turów mine with the relevant parameters specified in the investment contract. The unit meets strict environmental standards. SO2 emissions are almost 20 times lower compared to previously decommissioned units 8, 9 and 10, and dust emissions are about 10 times lower. The unit is adapted to the emission requirements of the BAT conclusions, which take effect from August 2021 and assume the implementation of the best available pro-environmental technologies.
The investment in Turów was PGE Group’s last project to build a coal-fired power unit. The Turów unit is the most modern among the assets of the planned new entity that will bring together the country’s coal assets – the National Energy Security Agency.
Capital expenditures by operating segment
| Segment (PLNm) | Q IV 2021 | Q IV 2020 | y/y | 2021 | 2020 | y/y |
|---|---|---|---|---|---|---|
| Conventional Generation* | 50 | 896 | -94% | 1,759 | 2,372 | -26% |
| District Heating | 236 | 337 | -30% | 610 | 671 | -9% |
| Distribution, including: | 440 | 448 | -2% | 1,358 | 1,680 | -19% |
| Connection of new customers | 210 | 195 | 8% | 626 | 694 | -10% |
| Distribution lines and grids | 134 | 132 | 2% | 359 | 546 | -34% |
| Renewables, including: | 85 | 39 | 118% | 189 | 715 | -74% |
| Modernisations and replacements | 27 | 28 | -4% | 86 | 59 | 46% |
| Supply, Circular Economy and other* | 810 | 48 | 1 588% | 862 | 186 | 363% |
| SUM TOTAL | 1,621 | 1,768 | -8% | 4,778 | 5,624 | -15% |
| SUM TOTAL (including consolidation adjustments) | 1,593 | 1,727 | -8% | 4,662 | 5,495 | -15% |