PGE invests massively. Such an amount has never been seen before

During the first half of this year, Polska Grupa Energetyczna (PGE) significantly increased its capital expenditure, reaching PLN 4.64 billion, which is a significant increase compared to PLN 3.95 billion in the same period last year.

Record investments of the PGE Group

According to the company’s management, this is a response to the rapid changes in the energy market and new regulations that require adjustment. As PGE CEO Dariusz Marzec emphasized, in the coming months the company will focus on closing the financing of the Baltica 2 offshore wind farm and finalizing key gas investments.

Thanks to the diversification of PGE’s operations, despite the challenges related to the conventional energy segment, the company maintains stable results. In the first six months of 2023, a net profit of PLN 2.09 billion was generated, which is similar to the result from the same period of 2022. The renewable energy segment recorded a significant increase, reaching PLN 267 million in EBITDA profit, which resulted from lower energy purchase costs and higher revenues from the capacity market.

However, it is the growth in investment that attracts the most attention – PGE’s expenditure for this purpose increased by almost PLN 700 million year-on-year, which is in line with the company’s long-term plan. One of the priorities for the second half of the year is finalizing financing for the Baltica 2 project – the largest planned offshore wind farm, which is to be completed in Q4 2023. This project is key to the development of zero-emission energy sources and involves cooperation with the Danish company Ørsted. In the future, PGE also plans to build the Baltica 1 farm, which will increase the total capacity of wind projects to 7 GW by 2040.

Gas investments

Another important step in the company’s strategy is investing in the gas segment. An example is the construction of two gas units in Gryfino and a CHP plant in Czechnica near Wrocław. One of the units in Gryfino was already launched in August, and the other is to be ready in September this year. The new CHP plant in Wrocław, which is planned to be launched in the second half of 2023, will significantly reduce CO2 emissions, which will contribute to the decarbonization of the Lower Silesia region. It will be fueled by natural gas and its thermal power will be 315 MWt, which is a large increase compared to the unit’s current power.

These investments show that PGE is committed to transforming towards more ecological and efficient energy sources, which is crucial for the future of the Polish energy sector.