Poland’s leading utility, PGE, has announced a substantial investment plan of 235 billion zlotys (approximately $63.8 billion) aimed at transforming its energy portfolio by 2035. This ambitious strategy focuses on renewable energy sources, gas-fired power plants, and energy storage solutions.
Historically reliant on lignite-fired power plants, PGE is shifting towards low and zero-emission energy technologies. The company intends to develop battery storage systems to support the fluctuating output of renewable sources. CEO Dariusz Marzec emphasized the need for new technologies and business models to adapt to the evolving energy landscape.
As part of this new strategy, PGE will allocate 85 billion zlotys specifically for renewable energy projects. This investment will facilitate the construction of both offshore and onshore wind farms, solar installations, and hydroelectric plants, with the goal of increasing its total renewable energy capacity to over 9 gigawatts (GW).
Additionally, PGE plans to invest 37 billion zlotys in up to 10 GW of flexible, low-emission gas-fired power plants that are capable of transitioning to zero-emission fuels. Furthermore, the utility will dedicate 75 billion zlotys to distribution infrastructure and 14 billion zlotys for energy storage, targeting a total storage capacity of 18 gigawatt-hours (GWh), which would account for about 60% of the market.
The company is also exploring nuclear energy development, earmarking several hundred million zlotys for research at three potential sites: Bełchatów, Turow, and possibly Konin.
PGE anticipates that the implementation of this strategy will boost its core profit from 11 billion zlotys in 2024 to 17 billion zlotys in 2030 and reach 30 billion zlotys by 2035. After stabilizing its financial position with consistent net profits and positive free cash flow over two years, PGE aims to resume dividend payments to shareholders, having suspended these since 2016 to fund its investments.
This comprehensive investment plan positions PGE at the forefront of Poland’s energy transition, as the country moves away from fossil fuels towards a more sustainable energy future.
