EduBourseActualitésRWE plans new 800-MW coal-fired power plant in Poland

RWE plans new 800-MW coal-fired power plant in Poland

Investment of Euro 1.5 billion

Joint venture with coal company Kompania Weglowa
RWE, one of the leading energy companies in Europe, is planning to construct a large hard-coal power plant in Poland. The investment of Euro 1.5 billion is one of the biggest-ever projects in the Polish energy sector. The new power station to be based in the village of Wola, Lower Silesia, will feature state-of-the-art technology. The energy-efficient, 800-megawatt unit will emit reduced amounts of CO2 and significantly enhance the country’s security of electricity supply. Technically it is a twin of the power plant currently being constructed by RWE in Hamm, Germany.

The project is based on a joint venture between RWE and Kompania Weglowa, the largest coal company in Poland and the EU, with RWE becoming the majority shareholder of the new joint company with a share of 75 percent. The parties signed a joint venture agreement in the presence of Deputy Prime Minister Waldemar Pawlak. The plant will be located on the premises of the former Piast Ruch II coal mine owned by Kompania Weglowa in the village of Wola and is scheduled to come on-stream in 2015.

Poland’s annual demand for energy is growing by 3 to 5 percent per annum. Dr Juergen Grossmann, CEO of RWE AG: “Poland is one of our core markets. This modern and efficient power plant is a key investment for us. I am very pleased that we have found such a professional partner in Kompania Weglowa.”

Dr Johannes Lambertz, CEO of RWE Power: “The new power plant – comparable to our innovative units currently being built in Germany and planned in the Netherlands – will have an efficiency rate of 46 percent. This will make it the most modern power plant in Poland and one of the most advanced power plants worldwide. The new unit will emit significantly less CO2 than older systems in Poland, where the current efficiency rate is only 33 to 35 percent. This means up to 30 percent less hard coal per kWh will be required and annual CO2 emissions will be reduced by 1.3 million tons.”

Such investments are only possible if the economic efficiency of using coal for power generation is not put at risk. This also requires that the European CO2 emissions trading system does not make a sudden change to auctioning the certificates for power generation for the trading period starting in 2013. Furthermore, an allocation free of charge based on fuel-specific benchmarks should be made for highly efficient newly-built power plants. The associated investment incentives benefit climate protection because the modernisation process would be expedited. This would strengthen supply security and curb the electricity price development.

“We value the long-term relationship with Kompania Weglowa, which is the basis of our partnership. I am particularly grateful to the leading Polish Academy AGH in Kraków for its scientific support of the project. With the assets RWE already operates in Poland in energy distribution and supply and our investment in wind farms as well as in this new power plant, we have now reached the Euro 2.5 billion milestone”, summed up Dr. Filip Thon, CEO of RWE in Poland.

Kompania Weglowa has taken on a key role in the project. It is providing the site, the infrastructure during the construction phase and the hard coal for the plant. As Grzegorz Pawlaszek, President of Kompania Weglowa, explained: “The new investment is hugely significant to the region as it will boost its economic revival. Thousands of jobs will be created or secured during the construction phase and, when the plant is up and running, hundreds more long-term positions will be available at the plant and in service and maintenance companies to be established in the vicinity of the power plant. The partnership with RWE gives us the security of a long-term contract for delivery of 2.5 million tons of coal per annum.”

Recently RWE Innogy, Essen, announced wind power projects with a total capacity of 200 MW in Poland. The sites are located in Masuria and Pomerania. The first permits are expected to be granted before the end of the 2022. The first wind power systems are due to come on stream in 2010. In 2007, RWE already took over two wind power projects with a total capacity of almost 80 MW in Poland, which are due to be commissioned in 2009.

RWE in Poland includes several companies. The major company is the regional energy supplier RWE Stoen. It delivers around 6.4 TWh of electricity, which constitutes 6 percent of the total energy market in Poland, and provides 865,000 industrial and residential customers with energy. RWE Stoen is one of two privatised distribution companies in Poland. In an unbundling process in 2007, the Warsaw energy network was incorporated into RWE Stoen Operator. According to the Energy Market Agency, the Warsaw grid is one of the most reliable in Poland. Apart from RWE Stoen and RWE Stoen Operator, the RWE Group also has shares in the Bedzin Cogeneration Power Plant, the Dabrowa Gornicza Water and Sewers Company and RWE Stoen Contracting as well as ongoing investment in wind farms with a capacity of some 280 MW.

Pierre Perrin-Monlouis
Pierre Perrin-Monlouis
Fondateur de Rente et Patrimoine (cabinet de gestion de patrimoine), Pierre Perrin-Monlouis est un analyste et trader pour compte propre. Il vous fait profiter de son expérience en trading grâce à ses analyses financières et décrypte pour vous les actualités des marchés. Son approche globale des marchés combine à la fois l'analyse technique et l'analyse fondamentale sur l'ensemble des marchés : crypto, forex, actions et matières premières.