The development outlook for Zespół Elektrociepłowni Wrocławskich KOGENERACJA S.A. and its subsidiary EC Zielona Góra S.A. is closely related to the implementation of the District Heating Strategy of the new business line PGE District Heating of PGE Polska Grupa Energetyczna S.A.
Maintenance of high profitability and stable EBITDA remain on top of the agenda of KOGENERACJA S.A. and EC Zielona Góra S.A. as drivers of the value of the two companies. This goal will be achieved by further optimization of revenue streams of both companies, minimizing variable costs, keeping fixed costs down and optimizing the asset base.
An increase in energy efficiency remains an important goal for the Group companies. The consistent upgrade of assets have a positive impact on the efficiency of production. As a result, in the following years, high reliability of production assets will be maintained to guarantee energy security for customers, as well as competitiveness of the Group’s products: heat and electricity.
The key issue for the future of KOGENERACJA S.A. is the decision to build the New Czechnica Heat and Power Plant, which will replace the existing facility. The new unit should be commissioned in 2023. On 12 December 2018, the Investment Committee of PGE Group took a decision to start the project preparation phase. The phase of selecting a contractor for the project has begun. An investment decision is expected at the beginning of 2021.
The position of EC Zielona Góra SA is different. The company already has modern production facilities (CC Gas Unit, and gas and oil boilers), which make it an environmentally friendly and reliable producer of heat and electricity. Electricity market analyses carried out in the Lubuskie Province, and well as analyses of gas availability and the potential inherent in the Capacity Market introduced in Poland, confirmed that development of an additional gas cogeneration source at EC Zielona Góra S.A. made economic sense. A process was launched to draw up feasibility study for the considered technical scenarios.
Currently, KOGENERACJA Group commenced the phase of modernization of existing generation equipment and environmental protection equipment by implementing the best available techniques to adapt them to the BAT/BREF emission limits – more stringent environmental protection standards which will become effective from August 2021. After completion of the planned modernizations projects, the companies will comply with all the strict norms in this area.
Both KOGENERACJA SA and EC Zielona Góra SA are leaders of the local heat markets and intend to remain heating companies of choice for heat consumers also in the future. Thanks to efficient flue gas desulphurization and denitrification installations in Wrocław, KOGENERACJA S.A. will remain an ecological producer of heat for the city's residents. Promoting network heat and extending the coverage of the heating network with financing under the Integrated Territorial Investments (ZIT) program is an important part of the efforts to limit low emission sources and smog, thus contributing to the improvement of air quality in the region. In this respect, KOGENERACJA will continue to maintain partner relationships and work closely with local authorities and with the heat distributor. Joint activities will result in the annual connection of 40–50 MW to the heating network for new buyers. Similarly, EC Zielona Góra S.A., as the owner of the municipal heating network in Zielona Góra, intends to upgrade and expand its network in the following years. Both companies will invariably follow the overarching rule of responding to emerging challenges and taking advantage of development opportunities.
Safety of employees and contractors will be a priority for the Group. The goal is the same: “zero accidents”. In this area, activities will be continued to improve safety and increase employee involvement in building a safe work culture.
The Group companies will continue to engage in a partner dialogue with local communities and support sustainable development based on corporate social responsibility and the values of the entire PGE Group.
The Management Board of the Parent Company is convinced that the implementation of all the activities described above is a firm guarantee that the companies of KOGENERACJA Group will continue robust performance going forward as well.
