Conventional energy construction in Poland 2014 Development forecasts and planned investments

Conventional energy construction in Poland 2014

Development forecasts and planned investments

This document investigates the projects and players involved in the conventional energy segment of Polish power construction. It delivers details on high capacity ventures aimed at production of electrical energy using coal, natural gas, lignite and nuclear power sources.

 

Readers will learn more about the investors funding key energy construction projects in Poland, the trends that indicate need for future construction in the conventional energy construction sector and prospects and earnings opportunities for potential investors.

 

Study these conventional energy issues and more…

  • Polish energy production – market size, value and complete updates on current state of the market, along with SWOT analysis
  • Polish capacity to produce energy using each of the major power sources – coal, lignite, natural gas and nuclear
  • Investment in conventional energy construction projects in Poland
  • Key investors and top sources of funding in the conventional energy construction segment
  • Overcoming obstacles to the profitable conclusion of conventional energy construction projects in Poland
  • Leading electrical power producers in Poland and their plans for significant upcoming projects.

 

This publication is exceptional because…

  • It supplies information about and analysis of major planned projects, including investors, block power, construction status, expected finalisation date and visualisations
  • It provides an inside look at the environment for investment and the activities of prime investors in the Polish conventional energy sector
  • It describes the short and long term development potential for the energy construction segment in Poland in accordance with the most-utilised types of fuel.

 

Get answers to your questions about conventional energy construction in Poland…

Due to advancements in conventional energy production and changes in funding sources, professionals engaged in this segment are asking:

  • What is the overall value (PLN bn) and size (MW) of conventional energy construction investments planned and underway in Poland?
  • What portion of these investments will reach completion?
  • What are the investment values and construction output quantities associated with each of the main fuel options – coal, natural gas, lignite and nuclear?
  • Which locations across Poland will benefit from the largest investments in conventional energy construction?
  • What is the status of the regulatory environment with regard to this market? Which specific regulations will have significant impact on market development?

 

Did you know...

  • In the Polish transmission system, over 30 years has 80% of the 220 kV line, 23% of the 400 kV line and 38% of transformers.
  • The modernization of the network, over 30 years old and in need of replacements would require about PLN 55bn.
  • In 2013, the investment outlays on the distribution network significantly exceeded PLN 6bn.
  • There are nine significant investments currently under construction, with net worth of over PLN 19bn, of which half the value is accounted for by an investment group PGE in Opole.
  • The planned capacity of the first nuclear power plant in Poland is about 3,000 MW.
  • By 2025, PSE will have invested about PLN 23bn. About 40% of the spending will be due to the connections and power evacuation from new sources.
  • Over the past six months the value of investments in the tender stage decreased by PLN 5bn, which results from both the suspension of certain investments, and in some cases moving on to the construction phase.

 

Selected companies analysed in this report...

Tauron, Enea, Energa, RWE, EdF, GDF Suez, PKN Orlen, KGHM, CEZ, Fortum, Dalkia, Kulczyk Investments, PGNiG, Alstom, Rafako, Polimex-Mostostal, Mostostal Warszawa, Abener Energia, Hitachi Power Europe, Elektrobudowa, Introl, Iberdrola.

 

Consult this report for assistance when…

  • Preparing a business for entry into Poland’s conventional power construction sector
  • Locating new projects and clients in the marketplace
  • Estimating demand and planning production processes for materials and equipment used in energy construction
  • Assessing the competitive landscape in this market
  • Evaluating the potential value of power construction investments in this market
  • Organizing data and analytical reporting for use by executive boards and shareholders.

 

Extract from this report

  • By the end of 2015 distribution enterprises will have made investments with a total value of close to PLN 27bn. This will be related not only to the modernisation of the existing networks or constructing new ones, but also the connection of new sources and customers, as well as wider investments improving the system, such as surveillance or remote control.
  • Projects in the tender stage account for a further PLN 32.1bn, including the still uncertain Elektrownia Polnoc, estimated at PLN 12bn. Over the past six months the value of investments in the tender stage decreased by PLN 5bn, which is due to both putting some investments on hold, and some of them moving on to the construction stage.

Market commentary by expert

 

The dynamically changing situation on the market of conventional energy production results in high turnover of investments – some go into standby, while other, already forgotten, return to the tender mode. On the whole, the value of active investment has decreased, although they are still worth more than PLN 100bn. Importantly, due to a new investment in Opole the value of investments in the construction stage has increased to over PLN 19bn, and the advancement of many tenders indicates that the pool of contracted investments is likely to increase soon.

 

Bartłomiej Sosna, Head Construction Market Analyst

 

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Table of contents

  1. Methodology      9
  2. Executive summary      11
  3. Investments in power networks      17
    1. Condition of the power network in Poland      17
    2. Value of investments in power networks      18
    3. Investment projects planned by the main operators      20
      1. Enea Operator      20
      2. Energa Operator      21
      3. Polska Grupa Energetyczna      22
      4. RWE Stoen Operator      22
      5. Tauron Dystrybucja      23
      6. PSE (formerly PSE Operator)      24
    4. Transborder projects concerning power lines      27
    5. Special-purpose Act on Transmission Corridors      29
  4. Investments in conventional energy      33
    1. Investment projects underway      33
      1. Stalowa Wola CHP Plant      33
      2. Selective Catalytic Reduction (SCR) and Exhaust Fluid (EF) unit at PKN Orlen      35
      3. Kozienice Power Plant      35
      4. Wloclawek Power Plant      37
      5. Opole Power Plant      38
      6. Rzeszow CHP Plant      39
      7. Tychy CHP Plant      40
      8. Zofiowka CHP Plant      41
      9. Gorzow CHP Plant      42
      10. Flue-gas desulphurisation units at EDF CHP plants      43
      11. Zaklad Wytwarzania Nowa in Dabrowa Gornicza      44
      12. Flue-gas denitrification unit at Rybnik Power Plant      44
    2. Investment projects in the tender phase      45
      1. Polnoc Power Plant      45
      2. Jaworzno III Power Plant      46
      3. Bydgoszcz CHP Plant      47
      4. Power Plant in Plock      48
      5. Pomorzany Power Plant      48
      6. Olsztyn CHP Plant      49
      7. Pulawy Power Plant      50
      8. Grudziadz Power Plant      51
      9. Elblag CHP Plant      52
      10. CHP Plant at Zaklady Azotowe Kedzierzyn      52
    3. Investment projects in the preparation and planning phases      53
      1. Turow Power Plant      53
      2. Torun CHP Plant      54
      3. Lagisza Power Plant      55
      4. Zeran CHP Plant      55
      5. Kompania Weglowa’s Power Plant in Wola      56
      6. KHW Power Plant in Katowice      57
    4. Projects on hold      57
      1. Plock Power Plant      57
      2. Rybnik Power Plant      58
      3. Ostroleka Power Plant      59
      4. Wroclaw CHP Plant      60
      5. Zabrze CHP Plant      60
      6. CHP Plants in Warsaw and Przemysl      61
      7. CCS Unit at Belchatow Power Plant      61
      8. Dolna Odra Power Plant      62
      9. Katowice CHP Plant      62
      10. Blachownia Power Plant      63
    5. EC’s decision on free carbon allowances      63
    6. Outlook for investments in conventional energy      65
  5. Investments in nuclear energy      73
    1. Nuclear power plant construction schedule      76
    2. Tenders for the construction of a nuclear power plant in Poland      77
    3. Costs of nuclear power projects      79
    4. Participation of Polish companies in the construction of nuclear unit      80
    5. Potential sites for Polish nuclear power plants      81
  6. Profiles of the major investors on the power market      83
    1. Polska Grupa Energetyczna (PGE)      83
    2. Tauron Polska Energia SA      84
    3. Energa SA      85
    4. Enea SA      86
    5. EDF Polska      87
    6. RWE Polska Group      87
    7. GDF Suez Energia Polska SA      88
    8. Elektrownia Polnoc      88
    9. PKN Orlen      89
    10. Fortum Power and Heat Polska Sp. z o.o.      89
    11. Dalkia Polska      90
    12. KGHM Polska Miedz SA      90
    13. CEZ Polska      91
    14. Polskie Sieci Energetyczne      91
  7. List of graphs      93
  8. List of tables      95
  9. About PMR      96

 

List of graphs

  1. Value of ongoing and planned power projects in Poland (PLN m), 2014-2024      13
  2. Network infrastructure in Poland, by age (%), 2013      18
  3. Capital expenditure on power networks of the main operators in Poland (PLN m), 2009-2013      19
  4. Capital expenditure of the major operators of power grids in Poland (PLN m) and change (%, y-o-y), 2012-2015      20
  5. Capital expenditure of PSE Operator in Poland (PLN m) and change (%), 2009-2017      24
  6. Existing and planned cross-border interconnections between Poland and its neighbours, 2012-2020      28
  7. Expenses related to real estate regulation to distribution system operators and transmission system operators prior and after the adoption of the Act on Transmission Corridors in Poland (PLN bn), 2013      30
  8. Distribution of costs related to regulating the legal status of land in Poland on the basis of the Act on Transmission Corridors, 2012      31
  9. Visualisation of a new unit at Stalowa Wola CHP Plant      34
  10. Visualisation of a new unit at Kozienice Power Plant      36
  11. Visualisation of new power units at Opole Power Plant      38
  12. Visualisation of a new unit at Zofiowka CHP Plant      41
  13. Visualisation of new power units at Polnoc Power Plant      45
  14. Visualisation of a new unit at Jaworzno III Power Plant      46
  15. Visualisation of a new unit at Turow Power Plant      53
  16. Visualisation of a new unit at Rybnik Power Plant      58
  17. Visualisation of a new unit at Ostroleka Power Plant      59
  18. Value of ongoing and planned power projects in Poland (PLN m), 2014-2024      66
  19. Existing and planned nuclear power plants within a radius of 300 km from Poland, 2013      75
  20. Map of potential locations for the nuclear power plant in Poland, 2013      82

 

List of tables

  1. List of key tenders for construction work invited by PSE, awarded or about to be awarded in 2013      25-26
  2. Transmission lines with non-regulated legal status in Poland, 2012      30
  3. Power units which were initially refused free carbon allowances, 2012      64
  4. Major power projects completed in Poland, 2005-2013      67
  5. Major power projects under construction in Poland, 2014      68
  6. Major power projects in tender phase in Poland, 2014      69
  7. Major power projects in preparation phase in Poland, 2014      70
  8. Major power projects in Poland put on hold, 2014      71