KOGENERACJA S.A. is the main producer of heat in Wrocław and a producer of electricity.
Heat market
At KOGENERACJA S.A., network heat is produced together with electricity in a high-efficiency cogeneration process.. KOGENERACJA S.A. has three plants: two heat and power plants in Wrocław (EC Wrocław and EC Zawidawie) and heat and power plant in Siechnice (EC Czechnica).
KOGENERACJA S.A. production plants
EC WROCŁAW
Coal-fired unit
812MWt
263MWe
Local distributor’s (Fortum) heat distribution network
EC CZECHNICA
Coal-fired unit
247MWt
100MWe
Heating network: network of a local heat distributor (Fortum) and 34 km of its own network supplying customers from Siechnice
EC ZAWIDAWIE
Gas-fired unit
21MWt
3MWe
Heating network: Fortum network and 4.7 km of own network in Wrocław-Zawidawa area
The price of heat is regulated (heat tariffs are subject to approval by the President of URE). The development of the heat market is mainly the result of new connections made as new buildings are constructed and as local boiler plants and individual furnaces are put out of use under low-emission programs implemented in cooperation with local authorities.
Chart. Buyers connected to heat distribution systems
Electricity market
In 2020, the annual electricity consumption in Poland fell by 2.3% and amounted to 165.53 TWh. In 2019 it also fell by 0.9% and amounted to 169.4 TWh (vs. 170.9 TWh in 2018 and 168.1 TWh in 2017).
Electricity production in Poland is mainly based on hard coal and lignite, which makes the domestic power industry vulnerable to changes in CO2 emission allowance prices and coal prices. The year of 2020 was characterized by high dynamics of volatility of wholesale prices of CO2 emission allowances, the price of which oscillated since the beginning of their register in 2020 from 24,24 euro per ton of CO2 to more than 33 euro per ton of CO2 in December 2020 (in 2019 the price varied between 18.71 euro per ton of CO2 to 29.77 euro per ton).
As a result of COVID-19 pandemic since March 2020 there has been a decrease of electricity consumption. Closing down sectors of the economy was reflected in stocks – ratings of most of the companies as well as basic raw materials and CO2 emission allowances dropped. In March the ratings for CO2 emission allowances amounted to 14,34 euro per ton of CO2.
Power Market
The Power Market was launched in Poland by force of the Act of 8 December 2017. According to the provisions of the Act, capacity is treated as a commodity which can be purchased and sold. Power Generating Units (”PGU”) will receive compensation for their readiness to supply electric capacity to the system at rates determined in the course of an auction. On 27 July 2018, an intra-group Agreement was signed on Power Market Management by PGE Group Companies, including KOGENERACJA S.A. and EC Zielona Góra S.A. Under the agreement, all activities related to the Power Market will be centrally coordinated and managed by PGE S.A. The companies will generate additional revenues in return for their commitment to supply capacity to the system which will facilitate the implementation of the Group’s business strategy and carry out the planned investment programs.
In November and December 2018, three auctions were held on the Power Market for supplies to be executed in 2021, 2022 and 2023. In December 2019 an auction of the power market for supply capacity from 2024 onwards took place. In December 2020 an auction of the power market for supply capacity from 2025 onwards took place. Contracted capacity duty resulting from Power Market auction for 2025 concerns only the subsidiary EC Zielona Góra S.A. The results of the initial auctions were announced to the public in the current reports of PGE S.A. no. 33,35, 38-42/2018, 36-37/2019, 35/2020 available at http://www.gkpge.pl/Relacje-Inwestorskie/Raporty-biezace/.
| 2021 | Power offered [MW] | Contract length [year] |
| Wrocław B3* | 66 | 7 |
| Czechnica | 25,5 | 1 |
* Unit B3 in 2021 won a 7-year contract and therefore it will not take part in auctions for capacity supply over the next 7 years; the settlement summary for the period between 2022-2023 shows the contract from the first auction.
| 2022 | Power offered [MW] | Contract length [year] |
| Wrocław B1 | 21,878 | 1 |
| Wrocław B2 | 66 | 1 |
| Wrocław B3 | 66 | 7 |
| Czechnica | 25,5 | 1 |
| 2023 | Power offered [MW] | Contract length [year] |
| Wrocław B1 | 21,878 | 1 |
| Wrocław B2 | 66 | 1 |
| Wrocław B3 | 66 | 7 |
| 2024 | Power offered [MW] | Contract length [year] |
| Wrocław B1 | 21,878 | 1 |
| Wrocław B2 | 66 | 1 |
| Wrocław B3 | 66 | 7 |
Elektrociepłownia Czechnica did not take part in the auction for 2023, as it will be replaced by a new generation unit.
EC Zawidawie unit did not take part in any of the auctions as its role is to support high-efficiency cogeneration.
The power generating units of KOGENERACJA S.A. which have not qualified for the Power Market will be subject to direct settlements as part of PGE Group for the provision of capacity pledging services.
Electricity consumers
KOGENERACJA S.A. is the largest producer of heat and electrical energy for Wrocław. Elektrociepłownia Wrocław has concessions for the production of electricity of 263 MWe. The EC Czechnica holds concessions for the generation of 100 MWe of electricity.
The electricity generated by KOGENERACJA S.A. is generated simultaneously with the network heat in the process of highly efficient cogeneration. Its part is produced using renewable energy sources (RES). Biomass is burned in dedicated installations replacing coal and thus reducing CO2 emissions.
Chart. Electricity consumers
