The strategic actions taken by the Company in 2014 led to the diversification of energy supply and to the generation of a great amount of it by its own generating sources. The aim of these actions is to secure the energy needs of the Company at the level of around 30 percent, and to achieve diversification of the power generation portfolio as well as a significant reduction of the Company’s exposure to the risk of climate policy and changes in fuel and electricity prices.
Key figures
- 20 percent - the amount of energy needed by KGHM to be generated by combined cycle gas and steam units in the Głogów and Polkowice combined heat and power plants
- 40 percent - amount by which GHG emissions from coal-fired sources will be reduced
Electrical energy generation will gradually secure KGHM’s energy needs and will lead to diversification of the power generation portfolio. Additionally, it will considerably reduce the Company’s exposure to the risk of climate policy or changes in fuel and electrical energy prices. Moreover, the energy generation technologies applied by KGHM are highly efficient and environmentally friendly. Their costs for the investor are compensated through the support system, guaranteed up to the year 2018, in the form of so-called yellow certificates.
The first of the units was put into operation in Q4 2013 and the second in Q3 2014. Expenditures incurred for construction of the two units totalled PLN 0.5 BN, including PLN 33 million in 2014.
Extension of the Combined Cycle Gas and Steam Units
- PLN 501 million, including PLN 33 million in 2014
- Obtaining cheaper electrical energy, generated by owned sources, compared to forecast market prices
- Construction of the Combined Cycle Gas and Steam units: electric power approx. 42 MWe and thermal power - around 40 MWt
- Covers ¼ of KGHM’s energy needs
- Development of KGHM’s own generation of electrical energy and heat in high-efficiency cogeneration
- Defining the technical requirements and contribution to the construction of the target model of source cooperation
- Development of the Head Office and Energetyka’s competencies in the energy area through access and use of the latest technologies
- Size of the project’s team: 3 members
- Hundreds of employees hired by the contractors
- Generating units created as a result of the investment project will be operated by Head Office workers hired pre-project and by Energetyka as Operator
- Building and maintaining good relations with the key suppliers and contractors of the Combined Cycle Gas and Steam Units
- Improvement of KGHM’s image as a power sector company with a positive environmental impact
- Use of domestic natural gas
- Reduction of GHG air emissions by more than 40 percent
Usage of the Combined Cycle Gas and Steam Units will result in optimization of the costs of electrical energy supply in KGHM. The combined heat and power generation from its own sources, at around 560 GWh of electricity, will be earmarked entirely for KGHM’s own energy needs in Poland. The Units - which were tested last year - also guarantee that in the case of breakdown of the national energy system the most important facilities in the Polkowice and Rudna mines (hoisting machines and fans) will still be able to operate.
The Combined Cycle Gas and Steam Units are also beneficial to the environment. Greenhouse gases emission is also lower – by 40% - in comparison to the conventional resources fired with coal.
Preparations are continuing to construct the first nuclear power plant in Poland. In 2014, together with PGE Polska Grupa Energetyczna, TAURON Polska Energia and ENEA, the final draft of the PGE EJ1 shareholders agreement was completed. Grupa PGE performs the role of Project leader, while PGE EJ 1 will act as the power plant operator in the future. As part of the agreement, KGHM, TAURON, and ENEA, as Business Partners, will acquire from PGE a total of 30 percent of the shares (10 percent each) of PGE EJ 1. The Parties also jointly committed, proportionally to the shares held, to finance the Preliminary Phase of the Project. The financial commitment of KGHM Polska Miedź S.A. does not exceed the amount of, approximately, PLN 107 million.