Energy: First, common sense

The narrative regarding the direction of transformation of the power sector has changed significantly in relation to what we heard a year or two years ago – noted during the discussion panel “Energetyka – Investments and Security” at the 17th European Economic Congress Maciej Górski, Vice President of the Management Board for Operational Board of the PGE Polish Energy Group.

Today, in the context of conversations about the energy and its transformation, the word “security” is very often used.

– I think it is very important that among the stakeholders of the entire energy market, among the main actors of the energy scene, there is a great awareness of its meaning – said Maciej Górski. – We hear more and more often in statements such terms as common sense or a balanced approach to transformation – noted PGE vice president.

Three important pillars

Wojciech Wrochna, Secretary of State at the Ministry of Industry, the Government Plenipotentiary for Strategic Energy Infrastructure spoke in a similar tone. He recalled 2014 when the Polish government proposed an energy union in Brussels. It was to be based on three important pillars. The first was energy securityunderstood then mainly as ensuring the supply of energy carriers.

– This proposal also included the issue of the price availability of energy. The third was an environmental, atmospheric element, i.e. clean, green energy – said Wojciech Wrochna.

Then, however, this third pillar became the most important and obscured others.

– Today we began to think again that each of these elements is just as important – noted the government representative.

In his opinion, energy transformation must be approached holistically.

– All three elements must be taken into account to think about a system that is safe, i.e. one in which energy supply is permanent – he emphasized.

Easier financing

For PGE Polska Grupa Energetyczna more A balanced approach to transformation is beneficial. It facilitates, among others, financing of demanding large projects.

– Dialogue with financial institutions, both international and Polish banks, looks completely different than a year ago – said PGE representative. – Now it turns out that as PGE Polska Grupa Energetyczna we are a good partner. Of course, the fact that we are the owner of coal assets does not build our competitive advantage, but it no longer interferes with conversations regarding the financing of our development investments – he described.

Recently, PGE has been looking for financing for their wind farms for their sea.

– We were able to obtain PLN 15 billion in financing in the Project Finance model. The appetite of financial institutions was enormous. So we followed the blow and began to talk to them about the financing of other investments. Not only completely demarbonized, but also, for example, gas. We noticed that we are meeting with a very positive answer. Both Polish banks, in particular Bank Gospodarstwa Krajowego, but also PKO Bank Polski and other, as well as international financial institutions began to raise their hand high, signaling that they are interested in participating in our gas projects – said the vice president of PGE Polska Energy Group.

It is worth adding that on April 25, during the European Economic Congress, PGE Polska Grupa Energetyczna and the European Investment Bank concluded a loan agreement worth PLN 2.25 billion, from which the funds will be allocated to finance the modernization of the Porąbka-Rar pupal power plant with 540 MW and the expansion of the portfolio of photovoltaic power plants with infrastructure of connection with total power 730 MW.

Responsible transformation

During the panel, Maciej Górski also drew attention to the need to conduct energy transformation in a responsible way, i.e. one that takes into account the needs of the transmission network operator on the one hand, on the other hand also local communities. In this context, he reminded that PGE employs over 40,000 people. New solutions – such as gas power plants – need fewer people to service than it was necessary to work in coal power plants.

He appealed to listen to the voice of employees in the energy sector. Among other things, because they perfectly understand what energy security is.

– Bełchatów, Turów or Opole power plants have always been a critical infrastructure. People who worked there, have extensive experience, understand the importance of their work for the national power system – said the vice president of PGE Polska Grupa Energetyczna.

Hence, among other things, the idea is to build the second large Polish nuclear power plant in Bełchatów.

This and other discussions in Katowice have shown that you can combine energy security with the competitiveness of the economy. As Maciej Górski said, the Polish power sector already has an idea on how to reasonably carry out energy transformation – a process that you need to think about in the long run.

– It is not a matter of showing a finger of one specific technology and clearly assessing it that it is worse or better. Today we have to look at the entire palette of available technologies on the energy market in order to make optimal choices. So those that on the one hand ensure the security of the power system, and on the other, electricity at a good price for individual recipients and guarantees the competitiveness of the Polish economy – Maciej Górski mined the discussion.