Poland set for € 55 billion power investment

Poland is in line for as much as € 55 billion investment in power projects with a combined capacity of 30000 mW by 2025, according to the latest data from specialist information provider PMR.

PMR researched projects currently planned by power companies in Poland and concluded that nuclear power projects represented over 40% of proposed capital expenditure for the next 15 years. Investment in coal-fired units is said to represent around 30% of the total, while planned gas units currently account for about 12% of the value of projects planned.

In terms of renewable energy, PMR said prospects for the growth of wind farms had deteriorated in Poland since the government's adoption of an amendment to its energy bill last year. The modification limited speculative reservation of connection capacities and introduced deposit payments for connection to the grid.

Following this change in the law, energy companies Enea Operator and Energa Operator cancelled most applications in Poland for connecting new wind farms.

Offsetting this, biomass-fired units have gained in popularity and have become a strong component of investment plans adopted by large power groups active in Poland such as Tauron, GDF SUEZ and Dalkia Polska.

Other power companies canvassed for PMR's report include CEZ (Skawina), RWE (Wola) and Vattenfall.

However, PMR cautioned that up to 50% of the projects that are currently being planned stand a chance of being cancelled.

"It is a common practice for investors to make preparations for a larger number of projects and execute only those which are the most profitable under the given economic circumstances," PMR said.