PGE signed an agreement to obtain control of two energy companies in Poland

Polska Grupa Energetyczna (PGE)

The Polish energy group Polska Grupa Energetyczna (PGE) wants to acquire 100% of the shares in PAK CCGT Sp—z o.o., which is working on a gas project at the Adamów Power Plant. Additionally, PGE intends to purchase 50% of the shares in PGE PAK Energia Jądrowa, which oversees the nuclear project, from ZE PAK. To facilitate this acquisition, PGE and ZE PAK signed an agreement outlining the purchase terms for the gas and nuclear projects.

“The Polish energy sector needs stable and flexible gas-fired power operating in the base, as key – alongside renewable energy sources – energy sources in Poland. The possibility of taking over the project of building a gas-steam unit with a capacity of over 560 MW on the site of the former Adamów coal-fired power plant, which is already underway, is consistent with the strategic directions of development of the PGE Group. The project would allow us to expand our portfolio of gas investments but also to increase our production potential, and most importantly, in a relatively short time, it could provide reliable and stable energy supplies to Polish homes. At the same time, nuclear energy remains the key to Poland’s full energy independence,” Dariusz Marzec, President of the Management Board of PGE Polska Grupa Energetyczna, explained.

The next step involves conducting due diligence, which includes examining the current state of both entities with the assistance of external advisors. This process is essential before finalising the agreement.

PGE, which is 60.8% state-owned, is Poland’s leading power generator. It boasted a capacity of 17.8 GW and generated 57 TWh in 2023, accounting for 37% of the country’s total electricity production that year.

PAK CCGT Sp. z o.o. is tasked with constructing a 600 MWe gas-steam unit and the necessary infrastructure at the former site of the Adamów Power Plant. This project has already secured a general contractor through a consortium composed of Siemens Energy Global GmbH Co KG, Siemens Energy sp. z o.o., and Mytilineos SA. The power plant has obtained a 17-year capacity market contract with a capacity obligation of 493 MW starting in 2026.

PGE PAK Energia Jądrowa was established in 2023 by PGE and ZE PAK to prepare for the potential construction of a nuclear power plant in the Konin region, which would have a total capacity of 2.8 GW. With the acquisition of 50% of the shares from ZE PAK, PGE would become the sole owner of the nuclear project.

“Therefore, as the PGE Group, we are taking specific actions related to gaining full control over the nuclear project implemented by PGE PAK Energia Jądrowa. In our opinion, this will provide us with greater opportunities to conduct analyses of additional locations for the nuclear project in agreement with the government administration, which sets the directions of activities in Poland in this area,” Dariusz Marzec added.

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