Business and its activities play an increasingly important role in how we achieve our sustainable development goals from a global perspective.
The importance of the participation of companies in this process is emphasized, among others, by The United Nations, which together with its member states in 2015 announced 17 key themes (SDG) necessary to be completed by 2030 so that we can recognize that our planet is developing in a sustainable way, i.e. safe for us and future generations. These goals focus on three elements: responsible economic growth, inclusive society and environmental protection. In the 2020 Ranking of Responsible Businesses, PGE Group was named, for the third time, as leader of responsible business in the fuel, energy and mining industries and placed fifth in the overall ranking. As PGE Group, we are taking action in each of the 17 SDG areas.
PGE Group’s new strategy names four of them that are of special importance to us. These are:
Goal 7. Affordable and clean energy
Goal 12. Responsible consumption and production
Goal 11. Sustainable cities and communities
Goal 13. Climate action
PGE Group’s long-term aspiration is climate neutrality and transition to 100% green energy for customers by 2050. Renewable sources are a key element in the transition, driving carbon dioxide emission reductions and increasing the share of renewable energy in the National Power System.
The PGE Group is running a programme for the construction of offshore wind farms. By 2030, the PGE Group will have built 2.5 GW of offshore wind farms within the framework of the strategic partnership with the global leader of the sector, the Danish company Ørsted. The construction of the Baltica 2 and Baltica 3 farms will mark the beginning of the PGE Group’s development in the offshore wind energy sector. Another offshore wind farm, Baltica 1, with a capacity of 0.9 GW, is to be commissioned after 2030. Taking into account the scale of planned investments, the PGE Group plans to develop its potential to independently operate and maintain offshore wind farms.
We are running a programme for the development of the Group’s photovoltaic installations whose strategic goal is to achieve 3 GW of solar power capacity by 2030 and ensure that the PGE Group is the leader in the development of photovoltaic power plants in Poland. In 2020, PGE Energia Odnawialna commissioned four one-megawatt photovoltaic farms: PV Lesko, PV Bliskowice, PV Lutol 1 and PV Lutol 2.
As part of the PGE Group’s programme for the construction of photovoltaic installations, preparatory works are underway for the first stage of the construction of photovoltaic farms on the premises of the Bełchatów Power Plant. Eventually, by the end of 2025, PGE will have built installations with a total capacity of over 600 MW in the Bełchatów area.
In the second quarter of 2020, we completed the project of building two onshore wind farms (Karnice II and Rybice/Starza) with a total combined rated capacity of 97 MW. PGE’s victory in a RES auction ensured the stability of the installation’s revenue and its economic viability. The windmills included in the project are located in the Zachodniopomorskie province.
PGE acquired the already functioning Skoczykłody Wind Farm. The farm is located in the Łódzkie province and its capacity equals 36 MW. It consists of twelve three-megawatt turbines. The efficiency of the farm reaches nearly 32 percent and the annual generation is close to 100 GWh.
Another project supporting the development of renewable energy sources was the commissioning of Poland’s first electricity storage facility using Tesla Powerpack modules in Rzepedź, Podkarpackie province. The installation was designed to support the reliability of the local distribution network. The container-based energy storage facility was built under the Innovative Network Services project.
The development of district heating is positively contributing to better air quality, which is why PGE is prioritising this segment. District heating networks are one of the most effective ways of combating smog, which is a problem in many Polish cities, particularly in the autumn-winter season. Research shows that, depending on the location, one of the main sources of smog is individual heating of buildings using low-quality fuels. In a district heating system, heat is generated in highly efficient heat-and-power plants equipped with effective denitrogenation, desulphurisation and dust filtration systems rather than in home furnaces. The cogeneration process also produces electricity, which means that the energy contained in the fuel is processed and used in a more efficient manner.
In our operations, we place great emphasis on working with local authorities to tackle the smog problem together and improve the quality of air for residents.
We are aware of the challenges that will come with the planned transition, which is why we are already preparing to fill in the gap that will be left over after conventional energy. Projects planned for the first phase of Bełchatów’s transition amount to nearly PLN 5 billion.
The most pressing challenge in the HR area currently is to prepare employees for the process of sustainable transition. This is the key objective of the new human resources management strategy, which PGE Group companies were invited to formulate. A working team was formed to develop solutions that correspond to the challenges faced by each of the Group’s operating segments on the basis of conclusions drawn from a detailed analysis of business strategy.
Support for Polish high culture is an important element of PGE’s involvement in the promotion of Polish music and the preservation of Polish traditions. Supporting 13 philharmonic orchestras across Poland, the PGE Group is one of the most recognisable patrons of high culture in the country. PGE has been supporting the National Philharmonic in Warsaw for a long time and since 2012 it has carried the honorary title of the Patron of the Year.
PGE Energia Ciepła, a company from the PGE Capital Group, has assumed patronage of the Polish Baltic Philharmonic in Gdańsk, the Karol Szymanowski Philharmonic in Cracow, the National Forum of Music in Wrocław, the Toruń Symphony Orchestra, the Tadeusz Baird Philharmonic in Zielona Góra, the A. Malawski Podkarpacka Philharmonic in Rzeszów, the Gorzów Philharmonic – the Centre for Artistic Education, the Świętokrzyska Philharmonic in Kielce, Opera NOVA in Bydgoszcz and the Henryk Wieniawski Philharmonic in Lublin. Meanwhile, PGE Górnictwo i Energetyka Konwencjonalna is the patron of the Mieczysław Karłowicz Philharmonic in Szczecin, The Józefa Elsnera Philharmonic in Opole. Thanks to PGE’s patronage, the philharmonics are able to organise concerts of the highest quality and to host the most outstanding artists.
One of the factors influencing the achievement of climate neutrality by the PGE Group by 2050 is the implementation of the principles of a circular economy in all areas of activity.
PGE follows the principles of a circular economy, seeking the widest possible applications for the generated by-products of combustion. Closing the circulation of raw materials and increasing the degree of their utilisation is an important process in the PGE Group due to the growing importance of efficient use of resources, reduction of waste generation in favour of by-products and minimisation of environmental impact.
We are aware of limited water resources and spares no effort to use them in a sustainable manner. In our operations, it uses water responsibly for the benefit of the entire ecosystem.
For technological purposes, water from surface water intakes is used and subsequently undergoes purification and treatment processes, with the exception of the Szczecin CHP plant which uses internal sea water. In order to reduce raw water consumption, closed circuits are used and used process water and wastewater are introduced to other processes. Wastewater generated by production operations in power plants and cogeneration plants undergoes treatment, including multi-stage treatment, and is then discharged to surface waters or transferred to municipal enterprises.
Building ecological awareness among the youngest, teaching them how heat is generated and where electricity comes from is very important for us.
In September 2020, PGE Energia Ciepła launched a new educational project for children from forms I-III of primary schools called “The Adventures of Ciepłosław the Cat”. The action enjoys the honorary patronage of the Minister of National Education. As part of the programme, 5 lesson scenarios, 3 educational games, 20 online workshop tasks and 5 animated films were prepared. All participating schools were invited to join a competition to create a comic strip about the adventures of Ciepłosław the Cat related to heat.
In the first two months of 2020, an educational campaign entitled “Safe Energy” was conducted among young children by employees of PGE Dystrybucja. This action has a long tradition and takes various forms in the company’s branches. However, its objective is one and the same: to teach children how to use electricity safely and economically. Children visit field units and learn about the work of power technicians and engineers in various areas, power dispatching or power emergency services. Sometimes power technicians and engineers visit schools and kindergartens and tell children where electricity comes from, what its sources are, how to use electricity safely and how to behave near power equipment. Through such meetings, children learn the emergency number for the electricity service and when to call it.
The PGE Group’s investments will focus on renewable energy generation, the transformation of heat generation and the network infrastructure. The Group will not make new investments in (either generation or extraction) coal and lignite assets, and investment decisions concerning the construction of gas sources will be taken no later than in 2025. The total planned capital expenditures in the years 2021-2030 will amount to approximately PLN 75bn, of which approximately 50 percent. will be allocated to the development of renewable energy sources (offshore and onshore wind farms, photovoltaics, zero-emission co-generation sources). Another important area of capital expenditures will be regulated activities, including the grid infrastructure and low-emission co-generation sources.
PGE Group investments until 2050
We are a leader in the transformation and modernization of the energy sector in Poland. We conduct systematic activities aimed at reducing greenhouse gas emissions. Specific emissions of carbon dioxide are being systematically reduced. This is the result of asset modernisation and development investments. Each year high capital expenditures are allocated for this purpose. Among other things, combustion processes are being optimised and solutions are being introduced to improve generation efficiency, increase effectiveness of fuel and raw material use and reduce energy intensity of generation processes and auxiliary purposes.
The Bełchatów Power Plant is a significant point source of greenhouse gas emissions. This is due to the fact that it is the largest unit in Poland and in the world generating electricity based on the combustion of lignite, which causes the accumulation of emissions in one location and their significant absolute values. It should be emphasised that in 2020 the Bełchatów Power Plant reduced its CO2 emissions by 15 percent compared to those in 2012. In this period, CO2 emissions decreased by approximately 5 million tonnes.
We restore the usefulness and natural character of post-mining areas in order to recreate their previous environmental features or shape new ones. The effects of the performed rehabilitation works contribute first of all to the improvement of the quality of basic environmental components, i.e. air, water and soil. Fugitive emissions of dust from the waste rock dump decrease in parallel to the growth of the afforested areas.
The types (forest, water, agricultural, municipal, industrial) and methods of rehabilitation must be in line with the local land development plan. Another important element is properly selected technical solutions and the quality of work to be performed. The deadline for completing rehabilitation works is also significant.