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In order to meet the more stringent emission requirements the generating assets are being gradually modernised. In 2017, capital expenditure of PGNiG TERMIKA amounted to PLN 258m, of which approximately PLN 20m was spent on environmental protection projects.

In 2017, major investment projects included:

  • Construction of a ca. 450 MW CCGT unit at the Żerań CHP plant (Żerań CCGT) – a contract for unit supply and assembly as part of the project was signed in 2017. The consortium of Mitsubishi Hitachi Power Systems Europe GmbH/Mitsubishi Hitachi Power Systems Ltd/Mitsubishi Hitachi Power System Europe Ltd/Polimex-Mostostal SA was selected to perform the contract. Additionally, three of the four stages of the cooling water system alteration were completed and the discharge pipeline assembly began. The construction site was handed over to the contractor and construction works began. In addition, in January 2017, GAZ-SYSTEM obtained a permit for the construction of a high-pressure pipeline from the Żerań CHP plant to the Rembelszczyzna compressor station and prepared tender documentation for the implementation of this project.
  • Construction of a ca. 450 MW CCGT unit at the Stalowa Wola CHP plant (ECSW) – in June 2017 a contract was signed with IDS-BUD S.A. for the construction of a cooling water pipeline. In September, the project as-built survey was completed, and in October an agreement was signed with the winner of the public procurement procedure held to select a company to provide EPCM services, i.e. the consortium of Zakłady Pomiarowo – Badawcze Energetyki ENERGOPOMIAR sp. z o.o. (Consortium Leader) and Biuro Projektiów i Realizacji ENERGOPROJEKT – KATOWICE SA (Consortium Member).
  • Construction of a ca. 70 MWe FBC unit at the Zofiówka CHP plant – due to a delay on the part of the contractor (Energoinstal S.A.) negotiations concerning continuation of contract performance are underway.
  • Completion of conversion of the K1 boiler in the Siekierki CHP plant into a biomass boiler.
  • Construction of a peak-load boiler house at the Żerań CHP plant – in November 2017, the contract was signed.
  • Completion of adaptation of the K2 steam generator at the Siekierki CHP plant to BAT (Best Available Technique) requirements.
  • Work on updating the concept of adaptation of the Pruszków CHP plant to operate after 2020 in connection with change of fuel from pea coals to fine coal.
  • Work continued on the preparation a pilot investment project to build a gas-fired co-generation unit to which gas produced by PGNiG at the Kościan-Brońsko Gas Production Facility would be supplied. The technical concept was developed, an application for power grid connection conditions was prepared.

Furthermore, as a cost optimisation measure, PGNiG TERMIKA diversified the portfolio of suppliers of repair services to increase competition among them and completed the implementation of maintenance standards and asset life cycle management methods. Furthermore, the company reduces internal energy consumption and monitors and plans the operation of generation facilities so as to optimise the use of opportunities provided by the 17500 h derogation in the TNP (Transitional National Plan) and relaxed conditions for peak-load sources.

In addition, PGNiG TERMIKA participates in the start-up programmes of the PGNiG Group and MIT EF, as well as in the assessment of projects from InnVento ideas incubator. In 2017, the project of remote meter reading with PSG was commenced.

31st 2017, PGG’s investors (including PGNiG TERMIKA) concluded a new Investment Agreement laying down the principles of making additional capital contributions to PGG totalling PLN 1bn, to finance the acquisition of production assets from Katowicki Holding Węglowy S.A. PGNiG TERMIKA provided PLN 300m of the aforementioned capital contribution and its target share in the share capital will amount to 20.43%.

PGNiG TERMIKA performs its owner supervision functions directly through a supervisory board member and indirectly as a result of performance of the Investors Agreement, with the said investors representing 66.4% of PGG’s share capital and having the right to appoint five out of eight supervisory board members. On December 29th 2017, the District Court of Katowice-Wschód in Katowice registered the post-transformation company, which gave effect to the Investment Agreement’s provisions on transformation of PGG into a joint-stock company.

In 2017, PGG posted better financial results than assumed in the Business Plan. The improvement was driven by a higher-than-expected rise in global coal prices and consistent implementation of the restructuring policy.