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Polish PGE to end coal for power and heat production by 2030

Polish state-owned energy company PGE Group has announced that it will stop using coal for electricity and heat production by 2030, according to the company’s updated strategy (29 August). 

The new strategy sets out plans to allocate 125 billion złotys (27.9 billion euros) for investments in offshore wind farms, energy storage facilities, construction of a nuclear power plant, modernisation of the distribution network and decarbonisation of the heating sector. 

“PGE is accelerating the transformation of the Polish energy sector. As the first energy group in Poland, it will achieve climate neutrality already in 2040, i.e. 10 years earlier than assumed in the PGE Group’s 2020 strategy. The update of the strategy is a reaction to the geopolitical and economic situation in Europe. The implementation of PGE’s strategy will result in strengthening Poland’s energy security and sovereignty, as well as access to modern services and clean energy for customers,” said Wojciech Dąbrowski, President of the Management Board of PGE (Polska Grupa Energetyczna).

By 2040, the PGE Group will build 12 gigawatts (GW) of renewables capacity, with over 7 gigawatts (GW) from offshore wind farms in the Baltic Sea, 1.5 GW from onshore wind farms and 3 GW from photovoltaic installations. By 2040, 5 GW of capacity is also expected to come from Poland’s first nuclear power plant and gas-powered power plants.  

The strategy also plans to replace gaseous fuel with renewable gases (biomethane, hydrogen, ammonia) before 2040. In total, PGE is expected to have 17 GW of generation capacity based entirely on zero and low-emission energy sources. 

PGE Group with leadership aspirations in energy storage

A key part of the updated strategy is its plan to strengthen the company’s position as a national leader in the energy storage sector.

PGE Group plans to expand its current pumped-storage power plant capacity and develop battery storage systems, which are to provide the Polish power system with a capacity of 3.7 GW by 2035. By the same date, the company also plans to launch electrolysers with a capacity of 300 MW.  

The PGE Group also plans to develop a recycling and recovery program for raw materials from depleted renewables and implement innovative solutions for the use of production and mining by-products. 

The updated strategy also places an emphasis on environmental, social, and governance (ESG). As part of the company’s ESG programme, the entire PGE Group management team will be “systematically” held accountable for the implementation of environmental and climate goals in accordance with international standards.

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