PL

Energy

Capitals:
sdgs:
  • Goal 7
  • Goal 9
  • Goal 11
  • Goal 12
  • Goal 13
On this page you learn
  1. Key assets
  2. Capacity market
  3. Wholesale and Retail Trading in Electricity
  4. Alternative fuels
  5. Strategic projects and business areas in Energy
  6. Logistics assets
  7. Supply sources

Ensuring stable energy supplies to the Polish system requires rapid implementation of technology Nuclear. To do that, you have to rely on proven technologies, and that's what BWRX is for which we have exclusivity. In this way, ORLEN provides real solutions to increase the energy independence of the economy. We do not limit ourselves to
We want to build reactors in locations important for the continuity of supply to the national network.

Key assets

The ORLEN Group is a significant producer of electricity and heat, used in large part to satisfy the Group’s own production needs, as well as one of main distributors of electricity in Poland. It is also one of the largest consumers of gas in Poland and an active participant in the process of gas market liberalisation. The ORLEN Group currently owns power generation assets in three countries. In Poland, they are located, inter alia, in Płock, Włocławek, Ostrołęka, Elbląg, Kalisz, Jedlicze and Trzebinia; in the Czech Republic – in Litvinov, Libiš, Kolin and Pardubice; and in Lithuania – in Mažeikiai.

The pool of generation assets was expanded in 2022 to include units owned by the former LOTOS Group and PGNiG. In terms of the share of electricity from renewable sources in total energy output, the ORLEN Group owes its strong market position mainly to hydropower plants and wind farms owned by the Energa Group and ORLEN Wind 3. Green energy is also generated at biomass-burning installations(at Energa Elektrownie Ostrołęka, Energa Kogeneracja, PGNiG Termika Group) and at five photovoltaic farms.

ORLEN Group power generation assets and their technical parameters.

Wind power plants

  • The Kanin wind farm of Livingstone (ORLEN Wind 3 Group), located in Kanin near Darłowo in the Province of Szczecin. It consists of eight Nordex wind turbines with a total capacity of 20 MW.
  • The Nowotna wind farm of Nowotna Farma Wiatrowa (ORLEN Wind 3 Group), located in the village of Nowotna in the County of Nowy Dwór Gdański, Province of Gdańsk. It consists of 20 V110 2.0 MW Vestas turbines.
  • The Kobylnica wind farm of Nowotna Farma Wiatrowa (ORLEN Wind 3 Group), located in the village of Kobylnica in the County of Słupsk, Province of Gdańsk, comprising 18 Siemens SWT 2.3 MW turbines.
  • The Subkowy wind farm of Nowotna Farma Wiatrowa (ORLEN Wind 3 Group), located in the village of Subkowy in the County of Tczew, Province of Gdańsk. It consists of four Gamesa G90 2.0 MW turbines.
  • The Bystra wind farm of Energa Wytwarzanie, located in the villages of Bystra, Dziewięć Włók and Wiślina in the County of Pruszcz Gdański, Province of Gdańsk. It is the smallest and also the newest farm located in the vicinity of Gdańsk. Within an area of 2 km2 there are 12 Gamesa G90 turbines totalling 24 MW in capacity.
  • The Karcino wind farm of Energa Wytarzanie, located between the villages of Karcino and Sarbia in the County of Kołobrzeg, Province of Szczecin. Within an area of 6 km2 there are 17 Vestas V90-3 turbines totalling 51 MW in capacity.
  • The Karścino wind farm of Energa Wytwarzanie is located in the Szczecin Province, County of Białogard, near Karlino in northern Poland. It consists of of 60 Fuhrländer FL MD77 turbines with a total capacity of 90 MW, and occupies an area of 11 km2.
  • The Myślino wind farm of Energa Wytwarzanie, located in the north west of Poland, in the County of Kołobrzeg, Province of Szczecin. Placed in operation in 2014, it consists of 10 Gamesa G97 wind turbines with a total capacity of 20 MW.
  • The Parsówek wind farm of Energa Wytwarzanie, located in the Municipality of Gryfino, Province of the Szczecin. It consists of 13 Gamesa G90 turbines with a total capacity of 26 MW.
  • The Przykona wind farm of Energa Wytwarzanie, built on a coal mine reclamation site in the Municipality of Przykona, County of Turek. It consists of nine Vestas V126 wind turbines with a total installed capacity of 32.85 MW.

Solar PV farms

  • Delta PV of Energa Wytwarzanie, in operation since the second half of 2014. It is located at ul. Benzynowa in Gdańsk, near the Bystra wind farm. The farm consists of 6,292 photovoltaic panels combined into 286 sets. Each set contains 22 photovoltaic modules in series connection. The farm’s installed electrical capacity is 1.64 MW.
  • PV Czernikovo of Energa Wytwarzanie located in the municipality of Czernikowo. The farm’s installed electrical capacity is 3.77 MW. The farm consists of nearly 16 thousand panels, each with a capacity of 240 W, covering an area of over 22.5 thousand2.
  • PV Gryf of Energa Wytwarzanie located in the municipality of Przykona. The farm’s installed electrical capacity is 19.833 MW. The farm consists of 18,198 panels of 545 watts and 18,366 panels of 540 watts. PV Gryf is being expanded, and its target installed capacity will be 25.083 MW.
  • PV Wielbark of Energa Wytwarzanie – In 2021, Energa Wytwarzanie acquired PV Wielbark installations with a total installed capacity of 12 MW in two phases as part of an ongoing acquisition process. The acquisition of Wielbark PV will ultimately cover assets with a total installed capacity of 62 MW located on an area of approximately 119 ha.
  • PV farm at CCGT Włocławek – located at the Włocławek CCGT unit, the farm is made of prefabricated photovoltaic modules. It comprises 4,442 photovoltaic panels with a capacity of 450 watts, arranged in four rows of 226 tables with 16 modules each, placed horizontally. The farm covers an area of 44,072 m2, and its total capacity is 1,998.9 kW.

Hydroelectric power plants

  • Włocławek hydroelectric power plant of Energa Wytwarzanie, with its installed capacity exceeding 160 MW and an average annual output of 750 GWh – Poland’s largest run-of-the-river plant. It produces more than 20% of the total electricity generated by the country's hydroelectric power plants. The Włocławek power plant was placed in service in 1969. It has six vertical hydroelectric sets with PŁ 661-W-800 Kaplan turbines.
  • Żydowo pumped-storage power plant of Energa Wytwarzanie, built in 1971. It is operated as an energy source in periods of sudden or peak demand, which means that in the event of a sudden power shortage, water is released through the turbines, and when there is excess power, the plant pumps the water back. This power plant is a natural energy storage facility. Its installed capacity is 157 MW, with three contributing turbine generator sets equipped with Francis turbines and Skoda Pilzno generators.
  • Small hydroelectric power plants of Energa Wytwarzanie comprise 44 small plants located mainly in northern Poland and one in the south of the country, with a total installed electrical capacity of about 40 MW.

CCGT plants

CCGT Włocławek a combined cycle gas turbine with an electrical capacity of 474 MW and thermal capacity 417 MW, producing heat and power in the cogeneration process. It came on stream in June 2017. In 2022, the plant operated in a stable manner, supplying electricity and process steam to PSE and Anwil. Thanks to relatively fast system control and high generation capacity, it steadily met the current demand from Poland’s power system and Anwil, while actively participating in the capacity market. In 2022, the CCGT plant produced 1.6 TWh net of electricity and supplied 1.5 PJ of heat in the form of process steam to Anwil.

CCGT Płock, a high-efficiency cogeneration unit commissioned in June 2018, with an electrical capacity of 608 MWe and thermal capacity of 519 MWt. The fuel for the plant is high-methane natural gas. The planned and LTSA-contracted maintenance shutdown began in October 2022, which involved replacing TG gas burners. The scheduled maintenance shutdown was completed on time. Following the shutdown, the unit underwent periodic and mandatory network tests that are repeated every five years. CCGT Plock provides process steam and electricity into the network as needed to balance the requirements of the Plock production plant, while also participating in the electricity market and providing ancillary power reserve services to PSE, the transmission system operator. In 2022, it generated 2.9 TWh net of electricity and 3.1 PJ of steam supplied to the Płock production plant system.

CCGT Stalowa Wola is a joint project of PGNiG and TAURON with each party holding a 50% interest in the venture. The CCGT unit, fuelled by natural gas, has a total electrical capacity of 450 MW. It supplies electricity to the National Power System and heat to the city of Stalowa Wola.

Combined heat and power plants and heating plants (CHPs and HPs)

In terms of thermal capacity, ORLEN’s high-efficiency combined heat and power plant in Płock is the largest industrial plant of this kind in Poland and one of the largest in Europe. It is the main supplier of steam heat, heating water and electricity to the Group’s production units in Płock and to external customers, including the city of Płock. With the installation of the new TG7 turboset and replacement of the TG1 turboset, it total installed electrical capacity increased to 428 MW. Boilers of the CHP plant are fired with heavy fuel oil derived from crude oil distillation and with natural gas. Due to the increase in gas prices at the beginning of 2022, EC boilers were fired with COO, and gas combustion was limited to the necessary minimum. The EC is equipped with flue gas treatment facilities to meet the environmental requirements set by the EU and the terms of the Integrated Permit. The EC is currently undergoing a modernization programme which includes replacing its heat generation assets, upgrading the Burner Management System (BMS) on boilers and high-pressure manifolds, among others. The process of replacing turbine sets with new ones is also continuing, with a project to replace two more 55 MW TG4 and TG5 turbine sets in the pipeline. In addition, ORLEN is implementing a programme to adapt the EC to the increased demand for electric power in connection with.

The Olefins III project, which includes delivery and installation of a new main supply point.

  • The ORLEN Południe Group’s CHP plant in Trzebinia fully satisfies the Trzebinia plant’s demand for steam heat and heating water, and partly its demand for electricity. The CHP plant is fuelled with natural gas, fine coal and biogas. The CHP plant is divided into a coal-fired section (one boiler) and a gas-fired boiler plant, which includes: two natural gas-fired boilers (KG-1 and KG-2) and the KG-3 boiler, which was commissioned in 2021 and burns a mixture of natural gas and biogas.
  • The ORLEN Południe Group’s CHP plant in Jedlicze, fired mainly with a range of fuels, including natural gas, fuel oil, fine coal and C4 fraction, is the Jedlicze plant’s main supplier of heat in the form of process steam.
  • The Anwil CHP plant is the primary source of heat in the form of medium pressure process steam and, at the same time, the peak-load and reserve source of heat for the Włocławek chemical complex. In its technological processes, EC Anwil uses mainly low-pressure process steam, supplied from ORLEN’s CCGT Włocławek, as well as steam from its own sources and excess steam generated by its technological processes. As a response to environmental regulations, the company has initiated a procurement process to construct a new gas-fired boiler plant that will replace the current boilers with limited capacity.
  • The ORLEN Unipetrol Group’s CHP plant in Litvínov, using mainly lignite as fuel, fully meets the Litvínov plant’s heat demand and partially satisfies its electricity demand. Design work is now under way for a new CHP plant project based on high-efficiency gas-fired cogeneration, which will ultimately replace the existing plant. The new CHP plant is to be launched after 2025.
  • The CHP plant in Spolana is the main source of heat for the Spolana facility. Since 2020, when the construction of a new gas-fired boiler house was completed and the existing coal-fired CHP plant was taken out of service, 100% of the demand for heat has been covered by a low-emission source.
  • EC Paramo (Pardubice and Kolin) fully secure the heating needs of two production facilities in Kolin and Pardubice. The heating plants are fired with natural gas.
  • The ORLEN Lietuva CHP plant is a source of process steam used in production processes, while ensuring stability of the power system. The unit operates in condensing mode to produce energy for sale to external customers and for ORLEN Lietuva's own needs when prices on the electricity market are high and it is more profitable to produce own electricity. The plant is fired with natural gas, refinery gases, C4 fraction, and low-sulfur fuel oil.
  • The Elbląg CHP plant of Energa Kogeneracja Sp. z o.o. the largest source of heat and electricity in Elbląg (Olsztyn Province). The heat generated by this source covers approximately 80% of the demand of the district heating system in Elbląg. The CHP plant is fired with coal and biomass, with gas used to support operations during periods of peak demand.
  • The Kalisz CHP plant of Energa Kogeneracja Sp. z o.o. is the largest source of heat and electricity in Kalisz. The heat generated by this source covers approximately 70% of the demand of the district heating system in Kalisz. The CHP plant is fired with coal. A new system is under construction with gas-fired water boilers to replace the coal-fired boilers.
  • The Żychlin CHP plant of Energa Kogeneracja Sp. z o.o. is the main supplier of heat for the city. The generated heat is transmitted and distributed through district heating networks, most of which are owned by the company, as is the plant itself. The CHP plant is fired with coal and biomass.
  • Gdańsk Refinery CHP – is a process source of heat and electricity used by the refinery for its own needs. The plant also supplies low-pressure steam and heat to the ORLEN Group. The installed thermal capacity of the CHP plant is 464.6 MW, and the installed electrical capacity is 30 MW. The CHP plant is equipped with four power boilers with a total achievable capacity of 586 t/h and two turbogenerators. In 2022, the total production of useful heat was 4,200.5 TJ, and gross cogeneration of electricity was 103.8 GWh.
  • Energobaltic CHP plant in Władysławowo, whose principal business consists in the production and sale of electricity and heat, LPG and natural gas condensate. The main source used to produce electricity and heat is natural gas. The CHP plant also uses natural gas from the municipal grid and light fuel oil as backup fuels. Natural gas condensate and LPG are byproducts of offshore oil production carried out by LOTOS Petrobaltic. Energobaltic CHP has a thermal power generation capacity of 32.7 MW. The plant includes two district heating and recovery boilers with a combined capacity of 17.7 MW, two turbine generators with a combined capacity of 10.8 MW, and three district heating boilers with a combined capacity of 15 MW.
  • The Siekierki CHP of PGNiG Termika is the largest heat and electricity producer in Warsaw, supplying approximately 55% of the heat used in the city. The plant uses hard coal as its primary fuel source and, to a lesser extent, biomass and fuel oil. The cogeneration section of the plant consists of two separate systems: an older collector system with steam boilers (one biomass, three coal-fired) and turbine sets, as well as a newer block system that includes three coal-fired district heating units. The production infrastructure at Siekierki CHP also includes a peaking section, which comprises three coal-fired water boilers and two oil boilers. In addition, the Siekierki plant includes one of the nine main switching stations of Warsaw's electricity hub. PGNiG TERMIKA is continuing the construction of a CCGT unit at the CHP plant.
  • The Żerań CHP plant of PGNiG Termika is the second main source of heat supply for Warsaw, providing approximately 45% of the area, and is currently undergoing extensive modernization. The cogeneration part of the plant consists of a coal-fired manifold system with two fluidized steam boilers and the five oldest steam boilers scheduled for retirement, as well as five turbine sets and a 496 MW CCGT unit.
  • The Pruszków CHP of PGNiG Termika with a total electrical capacity of 9.2 MW and thermal capacity of 183 MW. The cogeneration part of the plant consists of four coal-fired steam boilers, with three water-tube, sectional boilers and one radiant boiler (two scheduled for retirement in April 2023) and two turbine sets. The peaking part comprises two coal-fired WR25 water boilers (one retrofitted). The plant is being upgraded to replace the coal-fired steam section with gas-fired reciprocating engines.
  • The Kawęczyn heat plant of PGNiG Termika is the peak heat source for the Warsaw heating system. It has two coal-fired water boilers scheduled for replacement with gas-oil water boilers. As part of efforts aimed at reducing coal-based heat production and gradually switching to gas and fuel oil, a project is underway to build a 2x110 MW gas-oil boiler plant with infrastructure. Administrative approvals were applied for in 2022, which, if obtained in 2023, will allow the construction work to begin. The construction of a gas pipeline is a crucial investment to provide the necessary gas supply for the new units as part of the modernization plan for the Kawęczyn heat plant.

PGNiG Termika is prioritizing reducing its environmental impact in the construction of the gas pipeline. Trenchless methods are being utilized to minimize the need for cutting down trees and shrubs. Additionally, the company is switching from coal to low-carbon natural gas in order to further reduce its environmental footprint. PGNiG Termika planted 114 trees in Ząbki, a Warsaw suburb, as compensation for the necessary cutting of greenery in areas used by residents. This was done in agreement with the Warsaw municipality.

  • The Wola heat plant of PGNiG Termika serves as the second peak source of heat for the Warsaw district heating system, supplying it during periods of the lowest outdoor temperatures. It has three PTWM100 oil-fired water boilers. The Wola heating plant is a peak source, i.e. it operates in the period of peak demand for heat. The plant is projected to operate during the period when the average 24-hour temperature drops to -9°C.
  • The Jastrzębie-Zdrój plant (formerly the Zofiówka CHP plant) of PGNiG Termika Energetyka Przemysłowa produces heat, electricity and compressed air for residents and businesses in Jastrżębie-Zdrój. The plant also supplies compressed air to the nearby "Zofiówka" mine, which helps in facilitating the work of miners working underground. It uses a variety of fuels, including coal, low-calorie fuel, gas from mine de-methanation, agro biomass, and light fuel oil. The main generating units are steam and gas boilers and CFB fluidised bed. The installed capacity of the electricity-generating equipment is 81 MW, the heat section has the nameplate capacity of 300.4 MW (achievable 212.6 MW), and the cpacity for compressed air generation is 117 thousand Nm3/h.
  • The Jastrzębie-Zdrój Moszczenica CHP plantof PGNiG Termika Energetyka Przemysłowa produces heat and electricity using coal and gas from mine de-methanation. The primary generating units of the plant include water boilers and gas engines that produce electricity and heat in cogeneration. The installed capacity of the equipment for electricity is 9.164 MW and 66.2 MW for heat.
  • The Pniówek plant of PGNiG Termika Energetyka Przemysłowa produces heat, electricity, cooling and compressed air using coal and gas from minede-methanation. The plant's primary generating units are gas engines that produce electricity and heat in cogeneration, and coal-fired boilers. Installed capacity: electricity – 18.244 MW, heat – 72.26 MW, compressed air – 123 thousand Nm3/h, cooling – 17 MWch.
  • The Suszec plant of PGNiG Termika Energetyka Przemysłowa produces heat and electricity using coal and gas from mine de-methanation. Installed capacity: electricity – 5.96 MW, heat – 10.6 MW.
  • The Wodzisław Śląski plant of PGNiG Termika Energetyka Przemysłowa produces municipal heat and hot water and electricity, with coal and natural gas as the fuels. Installed capacity: electricity – 2.2 MW, heat - 55.435 MW.
  • The Wodzislaw Śląski Niewiadom plant of PGNiG Termika Energetyka Przemysłowa produces heat using thermal coal. The installed capacity of the heat-generating equipment is 3.2 MW.
  • The Racibórz plant of PGNiG Termika Energetyka Przemysłowa produces municipal heat and domestic hot water. The main generating units of the plant are steam generators fired with coal and gas-fired boilers. The installed capacity of the heat-generating equipment is 87.2 MW.
  • The Racibórz Kuźnia Raciborska plant of PGNiG Termika Energetyka Przemysłowa produces municipal heat and domestic hot water in coal-fired generation units. The installed capacity of the plant is 3.96 MW.
  • The Żory plant of PGNiG Termika Energetyka Przemysłowa produces heat in coal-fired water boilers. The installed capacity of the plant is 87.225 MW.
  • The Żory Czerwionka-Leszczyny plant of PGNiG Termika Energetyka Przemysłowa produces heat in coal-fired water boilers. The installed capacity of the plant is 14.5 MW.
  • Generation sources operated by PGNiG Termika Energetyka Rozproszona are located in twelve provinces with a total capacity of 7 MWe and 102.7 MWh.

Commercial power plants

The Ostrołęka B power plant of Energa is the only commercial power plant in the north-eastern region of Poland, which supplies energy to the Polish Power System. It also produces heat for industrial and municipal customers from the area of Ostrołęka. Its boilers use coal as a primary fuel. The power plant consists of three generating units with a capacity of 230 MW each. Its generating capacity totals 690 MW.

Offshore wind power

Baltic Power is the offshore wind farm project implemented jointly by ORLEN (51%) and Northland Power (49%) under the JV agreement concluded in March 2021. The company holds a licence (permit to construct and use artificial islands, structures and equipment in Polish sea areas) to build offshore wind farms in the Baltic Sea with a capacity up to 1,200 MW, along with technical, metering and maintenance infrastructure. Offshore wind power generation is one of the primary areas of focus for both shareholders of the Baltic Power project, as they seek to develop zero-emission projects. This long-term investment aims to facilitate the generation of zero-emission energy, which can be used by the company for its own consumption, or can be processed, stored, and sold as required.

In 2022, the company sustained its momentum and consistently achieved the goals outlined in the project schedule. The Baltic Power project continued to make significant progress in 2022 and maintained its status as the most dynamic offshore wind project in the Polish region of the Baltic Sea. By successfully achieving several milestones, the Baltic Power project has established itself as the most advanced project currently underway in Poland.

In January 2022, Baltic Power won a tender, and then in May signed a contract to lease land in the port of Łeba, where the wind farm’s maintenance base will be built on a 1.1-hectare plot between 2023 and 2025. In June 2022, Baltic Power achieved a significant milestone by becoming the first project to complete geotechnical investigations in both the farm area and the power output route to the mainland. The process involved a total of 13 specialized units and lasted for 282 days. In July, the company announced that it had secured a contract for transport and installation of offshore wind turbines. In line with the project schedule, in September 2022 the company announced the procurement of additional contracts for the construction, transportation, and installation of key components for the offshore wind farm, including foundations, offshore and onshore substations, cables, and wind turbines.

The company was the first in Poland to conclude all system support agreements (SSAs) for key components of the offshore wind farm. As a result, by the end of September, Baltic Power became the most advanced project under construction in Poland. In December, Baltic Power extended a formal invitation for banks to submit financing proposals, which marked the beginning of another stage of the financing process (bank launch).

In addition, the company undertook several supplementary activities to support the development of the Polish supply chain and the offshore wind farm sector. In June 2022, the Baltic Power Forum was held in Gdańsk, primarily aimed at stakeholders from the public administration sector, local government, and institutions involved in the processes of obtaining essential approvals, permits, and administrative decisions. The Baltic Power Supply Chain Meeting 2022 − the third in a series of meetings dedicated to companies interested in collaborating within the project's supply chain − took place in October, with over 400 individuals from 215 companies in attendance.

The impact of the Baltic Power project on the offshore wind energy sector in 2022 also led to increased activity from entities directly involved with Baltic Power. In October 2022, the ORLEN Group announced a strategic decision to construct the first installation terminal for offshore wind farms in Poland. The project, which is planned for completion between 2023 and 2025, will be used, among other things, for the installation of components of the Baltic Power farm. Meanwhile, the wind turbine supplier to Vestas announced the signing of a contract with Baltic Power and a decision to establish a new factory in Poland, which will produce components for the latest 15 MW wind turbines. The nacelles produced at the Szczecin plant will be used not only for the Baltic Power farm but will also be offered on global markets.

Capacity market

The year 2022 was the second consecutive year of implementing capacity contracts, which enable power producers to receive remuneration for maintaining a certain level of available capacity. ORLEN's generating units, which participate in the capacity market, include CCGT units in Płock and CCGT Włocławek, as well as ORLEN Group companies, including: PGNIG Termika, PGNiG Termika Energetyka Przemysłowa, ENERGA Elektrownie Ostrołęka, ENERGA Wytwarzanie and ENSPIRION.

In 2022, as in previous years, capacity market auctions were held to conclude new contracts that will be implemented in subsequent years:

  • on March 17th 2022, four additional auctions were held for the delivery year 2023,
  • on December 15th 2022, the main auction was held for the delivery year 2027.

In the supplementary auctions for the delivery year 2023 the following ORLEN Group companies executed capacity contracts:

  • PGNiG TERMIKA Energetyka Przemysłowa, with the capacity of 65 MW contracted for each quarter,
  • ENSPIRION, with the following capacities contracted: Q1 – 103 MW, Q2 – 95 MW, Q3 – 95 MW, Q4 – 99 MW.

In the Main Auction for 2027, five ORLEN Group companies contracted a total volume of 1,137.621 MW. The auction made it possible to secure multi-year contracts for nine units with a total capacity of 157.948 MW. The price for the first delivery year at the 2027 Main Auction was established at 406,350 PLN/MW.

Below is a summary of the volumes contracted by the individual ORLEN Group companies:

  • ORLEN – 235 MW,
  • ENERGA Ostrołęka Power Plant – 135.39 MW – 5-year contract for 2027-2031,
  • Energa Wytwarzanie – 139.071 MW and two contracts: 7-year contract for 3.79 MW for 2027-2033 for the energy storage facility at the Bystra WF and a 7-year contract for 18.768 MW for 2027-2033 for small hydropower plants,
  • ENSPIRION – 620 MW,
  • PGNiG Termika Energetyka Przemysłowa – 8.16 MW.

After the successful main auction in the previous year, in which the ORLEN Group secured 17-year capacity contracts for the Ostrołęka CCGT and Grudziądz CCGT units, the 2022 auction was focused on diversifying multi-year contracts for zero-emission units that can provide stable energy to consumers. One of the first-ever electrochemical energy storage facilities in the history of the power market was contracted, which is the energy storage facility located at the Bystra wind farm in the Pomeranian Voivodeship. This energy storage facility will be connected to the National Power System after the pilot phase. In addition, seven small hydroelectric power plants have been contracted (which, thanks to the 7-year capacity contracts executed, will undergo modernization), as well as one of the units at the Ostrołęka B power plant (which will be adapted to co-fire biomass to meet the CO2 emission limit required by the European Commission).

The other ORLEN Group facilities that were awarded annual capacity contracts are: CCGT Włocławek (ORLEN), the Żydowo Peak And Pumped Storage Power Plant (ENERGA Wytwarzanie), the Włocławek Hydroelectric Power Plant (ENERGA Wytwarzanie), reciprocating engines (PGNiG Termika Energetyka Przemysłowa) and more than a dozen demand side response (DSR) units (ENSPIRION).

The ORLEN Group's participation in the main capacity market auction with its modern CCGT units has provided a solid business foundation for this growth direction. The long-term capacity contracts obtained for the planned CCGT units in Ostrołęka and Grudziądz are also vital for maintaining security of electricity supply to end customers. New, low-carbon, flexible gas sources will complement renewable energy sources and allow for their further dynamic development.

Wholesale and Retail Trading in Electricity

In 2022, the ORLEN Group's wholesale electricity trading and Trading and Technical Operator functions were carried out by the following companies: ORLEN, Energa Obrót, Energa Elektrownie Ostrołęka and, as of November 2nd 2022, also companies of the former PGNiG Group. ORLEN primarily secures own energy needs and those of production companies in the ORLEN Group. As regards electricity trading, ORLEN S.A. focuses on optimising the sale of generated electricity and the operation of the generating units.

Energa Obrót engages in wholesale energy trading processes by optimizing energy purchases for its retail portfolio. The company also expands its presence in the renewable energy producer market by offering customized products to renewable energy generators.

The ORLEN Group is currently undertaking a comprehensive integration and centralisation project for its wholesale energy trading business, which includes the Grupa LOTOS companies acquired as of August 1st 2022, and PGNiG companies acquired as of November 2nd 2022. An important objective of the initiative is also to leverage financial and competence synergies that arise from the integration and centralization of the wholesale trading functions. The project involves centralising wholesale energy trading processes as well as Trading and Technical Operator functions at ORLEN Energia, and centralising retail sales functions in Energa Obrót. As a result, it is possible to develop strong competencies and solutions tailored to customers in a particular market within a single sales area.

Alternative fuels

In line with the ORLEN Group’s updated strategy, electricity (electromobility) is one of the alternative fuels that will significantly transform the fuel industry from 2030 onwards. Therefore, ORLEN plans to construct 10 thousand publicly available charging stations by the end of 2030. As at the end of 2022, the ORLEN Group had a network of: 598 electric vehicle charging stations, including 276 high-speed chargers.

The system is supported by a dedicated application that specifies the terms of use and pricing of the service.

ORLEN unveiled its Hydrogen Strategy 2030 in 2022, with a budget of PLN 7.4 billion allocated for investments in the development of low- and zero-emission hydrogen technologies based on renewable energy sources and municipal waste processing technology. The Hydrogen Strategy will be executed in four key areas: mobility, refining and petrochemicals, research and development, as well as manufacturing and power industry.

The projects will support the ORLEN Group’s transition towards a carbon-neutral multi-utility group. In 2022, the ORLEN Group launched its first pilot projects, including a mobile hydrogen refuelling station for city buses in Kraków and a laboratory that tests the quality of hydrogen used to power fuel cells in vehicles according to ISO 14687 standards. In March, the Group signed a contract to build hydrogen refuelling stations in Poznań and Katowice. In the following months, the company signed its first contract to supply hydrogen for 25 urban buses in Poznań, totalling 1.8 million kg over the next 15 years.

In 2022, the following decisions were secured for non-refundable funding towards hydrogen projects:

  • Under the IPCEI Hy2Use mechanism, the European Commission issued a positive notification decision for the ORLEN Hydrogen Eagle project. IPCEI Hy2Use involves 29 companies from 13 European Union countries and has a budget of EUR 5.2 billion approved by the EC. The approved value of aid to ORLEN is EUR 511 million (100% of the financing gap requested).
  • ORLEN secured a positive funding decision of EUR 12.8 million for the "Clean Cities - Hydrogen Mobility in Poland (Phase II)" project under the CEF 2 Transport - Alternative Fuels Infrastructure Facility programme. The funding will be used to construct five publicly accessible (24/7) hydrogen refuelling stations in: Piła, Bielsko-Biała, Gorzów Wielkopolski, Kraków and Warsaw.
  • A funding agreement of PLN 19.9 million was signed under the National Fund for Environmental Protection and Water Management Programme for the construction of hydrogen refuelling stations in Poznań, Katowice and Wałbrzych.

In 2022, several strategic partnerships were established, including becoming a signatory to the Sectoral Hydrogen Agreement, which is coordinated by the Ministry of Climate and Environment. The goal of the agreement is to coordinate the implementation of the main objectives of the Polish Hydrogen Strategy. A strategic cooperation agreement was signed with Alstom for the supply of zero-emission, eco-friendly trains and hydrogen fuel for public rail transportation. Additionally, a strategic cooperation agreement was signed with PESA Bydgoszcz for the creation of a comprehensive offer for public rail transport and shunting locomotives.

In November 2022, ORLEN announced the first Hydrogen Academy for students in Poland. Its main objective is to provide training and development opportunities for highly skilled professionals in innovative hydrogen technologies, as well as their practical application in various business contexts. The Academy is implemented with a number of partners, including representatives of the automotive industry, such as Toyota, and railway industry such as PESA Bydgoszcz, as well as academic institutions: Łódź University of Technology, Warsaw University of Technology and PAN Research Centre–KEZO.

Strategic projects and business areas in Energy

CCGT Ostrołęka

In 2022, as part of ORLEN Group's efforts to develop zero- and low-emission energy sources, the project to construct a gas-fired power plant in Ostrołęka continued as planned. The project is being implemented by the special purpose vehicle CCGT Ostrołęka Sp. z o.o., whose partners are ENERGA and ORLEN. A consortium of General Electric Power and General Electric Global Services was entrusted with the construction and long-term maintenance of a gas-fired combined cycle gas turbine (CCGT) power plant with a net capacity of 745 MW, based on contracts signed in 2021. The unit is to be placed in service at the end of 2025. The project is designed to secure capacity for the growing demand for electricity, which in the long run, thanks to the increased supply of power in the system, will help stabilise prices in the domestic market. The CCGT unit at Ostrołęka C Power Plant will serve as a reliable and modern source of electricity, produced natural gas, that will enable the balancing of energy from renewable sources.

The project secured support for a 17-year period starting in 2026 through the capacity market auction held December 2021. March 2022, the project entered its next phase of implementation as the Management Board of CCGT Ostrołęka issued a notice to proceed, following approval by the company’s General Meeting. At the same time, work was underway on the construction of associated infrastructure, which included the selection of a contractor for a gas pipeline connecting the power plant site to the Poland-Lithuania interconnector.

CCGT Grudziądz

The project, resumed in mid-2021, involves the construction of a gas-steam unit in Grudziądz, which will be a conventional condensing power plant with a planned capacity of about 560 MW. The CCGT unit will serve as a reliable and modern source of electricity, produced natural gas, that will enable the balancing of energy from renewable sources.

The Grudziądz CCGT project secured 17-year support through the capacity market auction in December 2021. In May 2022, EPC and LTSA agreements were signed with the general contractor, the Siemens Energy & Mytilineos consortium. At the end of June 2022, the construction site was handed over to the general contractor. Throughout the year, the project progressed with earthworks, such as piling for the turbine foundations, as well as ongoing design work.

CCGT Litvinov

In 2022, the company conducted extensive conceptual and design work aimed at creating a modern source of electricity and heat to meet the energy needs of ORLEN Unipetrol. The procurement process began in June 2022, and the contract is expected to be awarded in mid-2023. As part of the ongoing project work, the project team pre-selected potential bidders to ensure that only qualified and competent bidders participate in the tender process. The verification of the pre-selected bidders and the competitive dialogue process are currently underway.

CCGT Gdańsk

In 2022, work was carried out on the CCGT project in Gdańsk. The facility is designed to operate on a cogeneration basis, producing technical heat, with a planned capacity of approximately 450 MW. The plant's location will enable the supply of electricity to the National Power System, as well as a direct connection to the refinery to meet its process heat needs. During the project work, the procurement process was prepared and several bids were obtained for the construction of the unit. Complete documentation was also prepared to enable CCGT to participate in the capacity market auction in 2022. The project sponsors decided to postpone the unit's participation in the capacity market auction until 2023. The decision was made in light of the expected synergies from the integration of ORLEN and the Gdańsk Refinery, which would allow for the new unit to also meet the refinery's process heat needs. In 2023, conceptual work will continue, taking into account the new ownership structure of the refinery.

Peak-load plant (Żerań CHP plant)

In 2022, the project included the construction of a peaking boiler plant, gas infrastructure, grid entry point and the gas metering stations. In Q4 2022, the boiler plant underwent commissioning and control runs. The test run of the gas unit was also performed and the PSG gas station was commissioned. Due to difficulties encountered during the commissioning and control run phase, as well as the prolonged process of obtaining the substitute building permit required to obtain the occupancy permit, the final commissioning of the facility is expected to be delayed.

Kawęczyn heat plant

As part of efforts aimed at reducing coal-based heat production and gradually switching to gas and fuel oil, a project is underway to build a 2x110 MW gas-oil boiler plant with infrastructure. Administrative approvals were applied for in 2022, which, if obtained in 2023, will allow the construction work to begin.

Pruszków CHP plant

After the project obtained the building permit in May 2022, work began on the construction of a 45 MW gas-oil boiler plant. The boiler plant will be powered by three units: two oil-fired boilers with a capacity of 20 MW each, and a 5 MW gas-oil boiler. Completion of the construction and initial commissioning of the plant is planned for Q1 2023, with final commissioning scheduled for Q2 2023. Simultaneously, design work was being carried out for the gas engine room. Three units with a total capacity of 12 MW of electricity and 12 MW of heat are scheduled to be installed. Preparations are also in progress for the construction of a biomass boiler plant with a capacity of 35 MW of heat, as well as an additional gas engine with a capacity of 4 MW of electricity and 4 MW of heat.

Construction of heat accumulator (Żerań CHP plant)

Maximizing energy efficiency through the selection of an optimal size of the heat accumulator is a crucial aspect of optimizing the operation of the Żerań CHP During periods of high electricity prices, the accumulator enables the company to generate and profit from the sale of electricity while also storing the heat produced in the process. Furthermore, the heat stored in the accumulator will reduce the need to activate additional generating units during periods of high demand, thus helping to optimize energy usage. In 2022, preparations began to obtain the necessary administrative approvals for the construction of a 60 thousand mcm capacity accumulator.

Heat supply to the Rybnik municipality after 2022

The project work included the construction of gas-fired boiler plants at six locations in the town of Rybnik.

Zofiówka CHP unit

In 2022, the construction of new 2x2 MW cogeneration units was completed, and work continued on the construction of an electrical power system to accommodate power output from the SG-1 and SG-2 cogeneration units at the Pniówek Plant.

Small modular reactor technology

In line with its strategy and ambitions to achieve carbon neutrality by 2050, the ORLEN Group invests in low- and zero-carbon, stable and innovative electricity generation capacities. Therefore, in March 2022, ORLEN Synthos Green Energy was established after obtaining the consent of the Office of Competition and Consumer Protection. The company is responsible for preparing and commercializing micro and small nuclear reactor technologies (MMR and SMR) in Poland.

Due to the ongoing Russian-Ukrainian conflict, ORLEN Synthos Green Energy is planning an investment that will allow for the import of electricity from Ukraine and contribute to the stabilization and diversification of supply sources. This will strengthen Poland’s energy security and make a significant contribution to improving Ukraine’s economic situation.

The project assumes that the potential electricity transmitted to Poland would originate from the Khmelnitsky power plant in Ukraine. Its import, based on modernized infrastructure, would meet the needs of Polish industry and reduce Poland's dependence on hydrocarbon-based energy sources. ORLEN Synthos Green Energy is in the process of making the technical approvals necessary for the implementation of this project.

Photovoltaics programme

Development of renewable energy sources (RES) is an element of ORLEN’s energy strategy. The end of 2019 saw the launch of the Group’s solar photovoltaics programme, which will involve the development and coordination of solar PV projects across the ORLEN Group. In its initial stage, the Group selected locations satisfying the relevant technical criteria for potential installation of PV units, and contracts were signed with a supplier to provide project documentation for six locations (production plant in Płock: 4.8 MW, production plant in Trzebinia: 1MW, fuel terminals – Żurawica: 1.6 MW, Sokółka: 1.25 MW, Ostrów Wielkopolski: 3 MW, and Anwil site: 10 MW). Comprehensive technical documentation, including final building permits, was secured for four of the above locations, owned by ORLEN (the production plant in Płock, Sokółka, Żurawica and Ostrów Wielkopolski).

Construction at the Sokółka location commenced in Q3 of 2022 after the contractor was appointed, with a targeted completion date set for Q2 of 2023. In Q4 2022, the contractor was selected for the Żurawica location, the construction site was handed over and work was commenced. The planned completion date is between late Q2 and early Q3 2023. In December 2022, the procurement procedure for the Płock and Ostrów Wielkopolski sites was completed, in accordance with the guidelines and funding received from the National Fund for Environmental Protection. The subsidy amounts were PLN 10,850,300 for the Płock location and PLN 7,214,100 for the Ostrów Wielkopolski location. In Q1 2023, the Group plans to obtain corporate approvals for both locations and prepare the start of the construction process.

ORLEN Południe is currently in the process of selecting a contractor for the Rybnik site, which is planned to be finalised in January 2023. In Trzebinia, the contractor selection process was completed and work on the construction of the PV farm began. Steps have also been taken to develop 30 micro photovoltaic installations with a total capacity of about 1 MW located at the company's own gas stations. The procurement process has been finalized and the technical evaluation of the submitted bids is currently underway. A 2 MW PV plant at the CCGT Włocławek site was completed in Q4 2022. In addition, more properties and land owned by ORLEN are being analyzed for PV farms. As part of these analyses, technical documentation was commissioned for a PV farm in Mościska with a capacity of up to 500 KW and the Płock 2 farm with a capacity of up to 2 MW.

In 2022, Energa Green Development (EGD) initiated 20 solar PV farm projects with a total capacity of 297 MW. A total of 28 PV (photovoltaic) projects with a combined capacity of approximately 416 MW are currently in progress. which are now at the building permit documentation stage. In late 2022, all building permits were obtained for the Mitra PV project with an installed capacity of 65 MW. Construction is planned to start in the first six months of 2023. EGD has also initiated solar PV projects located near ORLEN Group-owned wind farms under a cable pooling agreement. Their total capacity is 145 MW. The ORLEN Group is also involved in the construction of four projects at Lubocino, Grobla, Żytelkowo and Chmielnik locations with a total capacity of 32 MW. The projects are currently in the process of obtaining technical documentation and the necessary administrative approvals.

The ORLEN Group plans to utilize the rooftops and water reservoirs on the land owned by the Gdansk Refinery for photovoltaic purposes. The preparations are underway for selecting a technical consultant to develop preliminary concepts and a feasibility study.

PGNiG Termika is continuing its project to construct a photovoltaic farm at the Kaweczyn Heat Plant as part of its efforts to develop its own renewable energy sources. The farm will have a capacity of about 1 MW, and is scheduled for commissioning in the first quarter of 2023.

Logistics assets

Electricity distribution is part of the ORLEN Group’s core business. This activity is regulated in Poland and it is based on tariffs approved by the President of the Energy Regulatory Office (URE). Energa Operator S.A. is the Group’s leading entity in this business line. The Group’s distribution assets are located in northern and central Poland, and the Group uses them to supply electricity to 3.3 million customers, of which approximately 3.1 million have signed comprehensive agreements and 174 thousand are TPA (third-party access) customers.

As at the end of 2022, the total length of the ORLEN Group’s power lines exceeded 195 thousand km and covered almost 75 thousand km2, i.e. about one-fourth the area of Poland.

PGNiG TERMIKA supplies heat to the municipal network in Warsaw owned by Veolia Energia Warszawa S.A. as well as to its own network in the areas of Pruszków, Piastów, and Michałowice. GNiG TERMIKA Energetyka Przemysłowa is a provider of heat distribution services in municipalities including Jastrzębie-Zdrój, Czerwionka-Leszczyny, Knurów, Racibórz, Kuźnia Raciborska, Pawłowice, Rybnik, Wodzisław Śląski, Żory and Częstochowa. In addition to heat distribution, PGNiG TERMIKA Energetyka Przemysłowa also engages in selling its products to various entities, including housing cooperatives, communities, municipal utilities, and mines. The total length of the heating networks used by the company is approximately 323 km.

PGNiG TERMIKA Energetyka Rozproszona is another company operating in the field of heat distribution, which supplies heat in twelve provinces: Lower Silesia, Kuyavian-Pomeranian, Lubuskie, Lublin, Lesser Poland, Mazovian, Subcarpathian, Pomeranian, Silesian, Warmian-Masurian, Greater Poland, and West Pomeranian. It provides its services to a diverse range of customers, including residential, industrial, municipal, and local government customers. The total length of heating networks used by the company is approximately 23 km.

Supply sources

Hard coal

Hard coal is the main fuel used by the Energa Group to produce electricity and heat. In 2022, the Energa Group’s generating units used 1,444 thousand tonnes of hard coal and 72 thousand tonnes of biomass (2021: 1,259 thousand tonnes and 85 thousand tonnes, respectively). The Energa Group's hard coal was supplied by Polska Grupa Górnicza (44%), Jastrzębska Spółka Węglowa (19%), PGG Paliwa (18%), Lubelski Węgiel "Bogdanka" (16%), and Węglokoks (2%).

Read also:

Energy management

Strategic growth directions for the ORLEN Group's business segments

Short-cuts:

ORLEN Group 2022 Integrated Report

You can also download the report in PDF format

Download pdf