Company activities
The Group's development policy and outlook
The development outlook for Zespół Elektrociepłowni Wrocławskich KOGENERACJA S.A. and its subsidiary EC Zielona Góra S.A. is based on the 2022-2026 Business Strategy of KOGENERACJA Group, and the PGE Group’s Decarbonisation Plan, in which the Group commits to reduce environmental footprint and achieve climate neutrality by 2050. We have set three strategic priorities: generating environmentally friendly energy, providing modern energy services and ensuring operational efficiency. It is also important to note the declaration of reducing the environmental footprint by reducing CO₂ emissions by 15% by 2026 and achieving climate neutrality by 2050.
The Group plans to reduce carbon emissions though technology changes, enable its clients to participate in the transformation and become engaged in activities supporting the circular economy.
The construction of a new gas-fired power plant in Siechnice, which will replace the current coal-fired unit, remains as a strategic project. In 2023, the construction of the gas connection was completed, and four peak-load reserve boilers and a heat accumulator have already been put into operation. The CC Gas Unit will be put into operation in the next stage of the project planned for the second quarter of 2025. Thanks to the use of modern technology and gas as fuel, heat and electricity will be produced in Siechnice in an efficient and environmentally friendly manner.
In February 2024, a change was made to the Local Development Plan for Wrocław. The change will enable a project of key importance for EC Wrocław, which will allow a complete phase-out of coal by 2030 by switching to the CHP plant located in the city centre. The change will ensure greater comfort and cleaner air for residents of the city.
In 2024, the Investment Programme for Wrocław was adopted, providing for the construction of a new gas-fired CHP plant at Łowiecka Street in Wrocław (on the premises of EC Wrocław). By 2030, new production facilities using low- and zero-emission technologies will be launched at EC Wrocław. To this end, the currently vacant historic production buildings of the former power plant will be used, built at the beginning of the 20th century. These actions will not only have a positive impact on the natural environment, but will also ensure the security of energy supplies to consumers for years to come.
The former power plant buildings will house new facilities constructed using modern, ecological technologies. Electrode water boilers, gas-fired cogeneration units, water boilers and industrial pumps will be installed, which will use the heat from the Oder River to produce heat. It will become the lower heat source for these devices. The water discharged into the river will be cooled and aerated, which will have a positive impact on the condition of flora and fauna, especially in the summer months. In order to implement the programme, in November 2024, an application was submitted for a decision on environmental conditions together with an environmental impact report.
In 2023, the Company signed a gas supply agreement with Polska Spółka Gazownictwa, which will meet the needs resulting from the investment plans described above. In July 2024, the Lower Silesian Provincial Heritage Conservator issued conservation guidelines aligned with the Company's expectations for the development of new generation capacities in the historic buildings of the old, decommissioned power plant on Flisacka/Łowiecka Street. The project is currently at the stage of conceptual and design work for the gas pipeline route, including agreements with PKP regarding its passage through railway-owned plots and in close proximity to railway areas, as well as obtaining an environmental decision for the pipeline's construction.
In 2025, it is planned to select the designer of a new gas-fired CHP plant at Łowiecka Street in Wrocław.
In turn, at EC Zawidawie, where two additional cogeneration units and a new solar installation were launched in 2023, we also plan to increase the plant's capacity by 2030 by building new low- and zero-emission generation units. The increase in electric power of this CHP plant is particularly important due to the constantly growing demand among consumers in the eastern part of Wrocław, where numerous residential and industrial projects are carried out.
Both KOGENERACJA S.A. and EC Zielona Góra S.A. are leaders of the local heat markets and intend to remain heating companies of choice for heat consumers also in the future.
Both companies deliver external projects with regard to new connections to heating networks. In the following years, work will continue to stabilise the volume of heat supplied to consumers through network expansion.
The Group companies’ seek to increase energy efficiency and maintain high profitability and stable EBITDA. This goal will be achieved by further optimisation of production at both companies, minimising variable costs, keeping fixed costs down and optimising asset management. The support mechanism of the Capacity Market will play a key role as a stabiliser of the Company’s revenues going forward.
Safety of employees and contractors will be a priority for the Group. Activities will be continued to improve safety and increase employee involvement in building a safe work culture.
In implementing the Business Strategy for 2022-2026, the KOGENERACJA S.A. Group will support the seven UN Sustainable Development Goals by focusing its activities on environmental aspects, e.g. Affordable and Clean Energy and Climate Action, but also on social aspects: Responsible consumption and production, Decent work and economic growth, Sustainable cities and communities, based on corporate social responsibility and values applicable across PGE Group.