27.2 Cash flows from investing activities

In 2020, the largest expenditures on the acquisition of property, plant and equipment as well as intangible assets were incurred by the following segments:

• Conventional Power Generation – PLN 2,903 million, including:
  • Dolna Odra Power Plant Complex Branch – construction of units 9 and 10, approximately PLN 602 million (including advance payments of PLN 550 million), adaptation of units 5-8 to the requirements of the BAT conclusions, approximately PLN 104 million,
  • Turów Power Plant Branch – construction of a new power generation unit, approximately PLN 530 million, modernisation of units 1-3, approximately PLN 154 million,
  • Opole Power Plant Branch – modernisation of units 1-4, approximately PLN 254 million, including PLN 75 million to adapt the units to the BAT conclusions,
  • Bełchatów Power Plant Branch – adaptation of units 3-12,14 to the requirements of BAT conclusions, approximately PLN 197 million, medium overhauls of units 5,6,9,10, approximately PLN 66 million, limited modernisation of unit 2, approximately PLN 33 million
  • Bełchatów Lignite Mine Branch and Turów Lignite Mine Branch – expenditure on replacement of basic machinery and construction of conveyors in the company’s lignite mines, approximately PLN 186 million
• Distribution – PLN 1,925 million, including mainly new customer connections as well as modernisation and expansion of networks, substations and power lines.

In 2019, the Conventional Power Generation segment incurred expenditures of PLN 3,610 million and the Distribution segment – PLN 2,181 million.

In 2020, the PGE Capital Group acquired shares in ECO-POWER sp. z o.o. Expenditures on the acquisition of the company amounted to PLN 150 million, while acquired cash amounted to PLN 28 million.

The companies in the Conventional Power Generation segment are obligated to hold funds in the Mine Liquidation Fund, in accordance with the provisions of the Geological and Mining Law.