Reports related to this article:
Project(s): View 1 related project in PECWeb
Plant(s): View 1 related plant in PECWeb
Released September 26, 2012 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- Plans for a 1,000-megawatt (MW) coal-fired plant in north-east Poland have been put on ice by Poland's state-owned electricity utility, Energa (Gdansk, Poland).
The proposed addition to the Ostroleka coal-fired power plant is no longer possible due to problems securing financing for the project, the company stated. Instead the company plans to invest approximately 723 million ($934 million) every year until 2020 in the construction of gas power plants, electricity grid projects and the development of renewable energy sources. By 2020, the company plans to more than double its total installed electrical capacity and strengthen its position as a leader in the country's fledgling renewable energy sector.
By then, the company expects to have an energy capacity of about 2,550 MW, of which about 1,000 MW will be generated by gas-fired power plants, another 900 MW from renewable sources, 450 MW from coal-fired plants and another 200 MW from co-firing plants.
"The Energa SA Management Board has decided to temporarily stop the preparatory work for the construction of the coal in Ostroleka," said Szyszko Roman, Vice President for Finance at Energa. "This is due to difficulties in obtaining financing...and unfavourable conditions in the construction market. Energa will now seek a partner for the project."
He added: "We are aware that there is a justification for the creation of a new conventional power plant in north-eastern Poland. However, the scale of investment and the current financial crisis, which has resulted in less availability of capital and less favourable external conditions for its recovery, make a stand-alone project impossible. Continuing the project in the current situation would be inconsistent with the public interest, including the shareholders of our company. We will focus on those investments that provide optimum performance in terms of finance, energy and environmental rewards such as the development of the distribution network and renewable energy projects."
The company's new focus on renewable energy and modern gas-fired plants is expected to reduce Energa's carbon emissions by around 40% by the end of the decade.
"Greater emphasis on low-carbon projects is a natural step in stabilising the situation in energy prices and changes in the support system for renewable energy," explained Miroslaw Bielinski , CEO of Energa. "Current market conditions have prompted us to review our investment strategy."
He added: "Construction of new generation sources is not, contrary to appearances, the biggest threat for the safety of the Polish power system. The risk to the stability of the [power] system and development is down to the bad condition of the grid."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The proposed addition to the Ostroleka coal-fired power plant is no longer possible due to problems securing financing for the project, the company stated. Instead the company plans to invest approximately 723 million ($934 million) every year until 2020 in the construction of gas power plants, electricity grid projects and the development of renewable energy sources. By 2020, the company plans to more than double its total installed electrical capacity and strengthen its position as a leader in the country's fledgling renewable energy sector.
By then, the company expects to have an energy capacity of about 2,550 MW, of which about 1,000 MW will be generated by gas-fired power plants, another 900 MW from renewable sources, 450 MW from coal-fired plants and another 200 MW from co-firing plants.
"The Energa SA Management Board has decided to temporarily stop the preparatory work for the construction of the coal in Ostroleka," said Szyszko Roman, Vice President for Finance at Energa. "This is due to difficulties in obtaining financing...and unfavourable conditions in the construction market. Energa will now seek a partner for the project."
He added: "We are aware that there is a justification for the creation of a new conventional power plant in north-eastern Poland. However, the scale of investment and the current financial crisis, which has resulted in less availability of capital and less favourable external conditions for its recovery, make a stand-alone project impossible. Continuing the project in the current situation would be inconsistent with the public interest, including the shareholders of our company. We will focus on those investments that provide optimum performance in terms of finance, energy and environmental rewards such as the development of the distribution network and renewable energy projects."
The company's new focus on renewable energy and modern gas-fired plants is expected to reduce Energa's carbon emissions by around 40% by the end of the decade.
"Greater emphasis on low-carbon projects is a natural step in stabilising the situation in energy prices and changes in the support system for renewable energy," explained Miroslaw Bielinski , CEO of Energa. "Current market conditions have prompted us to review our investment strategy."
He added: "Construction of new generation sources is not, contrary to appearances, the biggest threat for the safety of the Polish power system. The risk to the stability of the [power] system and development is down to the bad condition of the grid."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
