The Polish Energy Group

Home full of energy The Polish Energy Group

Warsaw, June 2008

Organisation of Polish Energy Sector

Tauron

BOT

Ł2

L5 + RZE

Energia Pro

26%

17%

PGE SA

29%

Dolna Odra

41%

PGE

PKE

Stalowa Wola

Enion

Energy

ENEA

Ostrołęka

Energa ENEA

Share in a wholesale market Share in a retail market 2

15%

Power Plant 2%

16%

11%

Kozienice

PGE The Polish Energy Group SA El. śarnowiec 716 MWe El. Szczecin 88 MWe 220 MWt

El. Pomorzany 134 MWe 323 MWt

El. Dolna Odra 1 772 MWe 117 MWt

El. Wodna Raduszec Stary

ZEB 2,9 TWh

EC Gorzów 97,5 MWe 399 MWt

ZEC Bydgoszcz 262 MWe 857 MWt

El. Wodna Dychów 90 MWe

El. W. Gubin El. W. Zasieki El. W. Przysieka El. W. śarki Wielkie El. W. Zielisko El. W. Bukówka El. W. Sobolice

El. Wodna Dębe 20 MW

El. Turów 2088 MWe 295 MWt

ZEŁ-T 4,3 TWh . KWB Bełchatów

El. Bełchatów 4 440 MWe El. Wiatrowa Kamieńśk 30 Mwe 376 MWt

El. Opole 1492 MWe 102,5 MWt

KWB Turów

El. W. Januszkowice

Lubzel 3,3 TWh

Ciepłownia Kielce 286 MWt

El. Wodna Porąbka El. Wodna Tresna

Elektrownie i elektrociepłownie gazowe Elektrownie wodne, w tym szczytowo-pompowe

Distribution

Elektrownie wiatrowe

ZKE 1,9 TWh

RZE 3,8 TWh

zakłady energetyczne

Elektrownie węgla brunatnego

EC Lublin 246,5 MWe 592 MWt

ZEORK 4,4 TWh

El. W. Krępna

Elektrownie i elektrociepłownie węgla kamiennego

Installed power

ZEW-T 5,2 TWh

ŁZE 2,8 TWh

El. W. Gorzupia I i II El. W. Grajówka El. W. śagań I i II El. W. Małomice El. W. Szprotawa El. W. Kliczków

Basic data PGE SA

El. Porąbka-śar 500 MWe El. Wodna Myczkowce

EC Rzeszów 102 MWe 332 MWt

El. Solina 200 MWe

Power and thermal-electric power station where coal is used Power station and brown coal mines Gas Thermal-electric power station Hydro-electric power station, including pomping hydro Wind park

3

~12 GW

Electricity production

~60 TWh

Number of customers

~5 mln

Number of emploees

39 tys.

Share of a market

45%

Share of retail market

29%

PGE organisation structure PGE will be organised as operation holding with strong corporation center and five businness lines.

PGE companies which manage business lines

Operation units

Extraction and production (BOT GiE) KWBB

Wholesaleturnover (PSE-Electra)

Retail

Distribution

ZEŁT

OSD ZEŁT

ŁZE

OSD ŁZE

ZEB

OSD ZEB

RZE

OSD RZE

EC Gorzów

ZEWT

OSD ZEWT

EC Lublin

ZEORK

OSD ZEORK

LUBZEL

OSD LUBZEL

ZKE

OSD ZKE

KWBT ELO ELB ELT ZEDO

EC Rzeszów ZEC Bydgoszcz Other productive companies

4

Renewable electricity (ESP) Plant

Wind Energy Power Plant Other renewable electricity production

RES target in Poland PGE elaborated two variants of RE development in the power sector in Poland- assumig 15% RE share at production and selling of electricity for final customers.

Variant I 35

TWh

34,2

Forecast for needs for renewable energy in Poland untill 2020. [ TWh ]

That is how much energy from OZE Poland should product to achieve 15% share in total production in 2020.

31,9 28,8

30

25,9 25

OZE production in Poland in 2007

20

18,8

17,8

18,3

[ 228 TWh - 2020]

23,1 19,4

19,9

20,5

14,5

15

Variant II

11,3 10

5

7,8

10,0

12,3

12,7

13,1

13,5

13,9

14,3

16,1

18,1

20,2

22,3

24,0 That is how much energy from OZE Poland should product to achieve 15% share in total sale in 2020

5,4

[ 160 TWh - 2020 ]

0

2007

2008

2009

2010

2011

2012

2013

requirement counted after sale 5

2014

2015

2016

2017

2018

2019

2020

Requirment counted after production

PGE contribution into the RE target achievment in PL 35

34,2

Prognozowana produkcja energii z OZE w TWh Projected energy production from RES in TWh

TWh

Projected target for Poland in 2020

31,9

ŚcieŜka dojścia celufor Path of reaching thedo goal dla Polski Poland whichwynoszącego amount 15% of 15% produkcji production in 2020 w 2020

30

25

28,8

25,9 23,1

20 17,8

18,3

18,8

19,4

19,9

20,5

Projected share PGE

14,5

15

13,3 11,3

11,1

13,5

13,8

11,4

Scenario I 40 % target for Poland

9,2

10 7,7 5,1

5

5,3

3,8

3,6 0,9

1,0

2008

2009

5,3

6,6

6,6

6,6

6,6

6,6

6,6

4,5

4,5

4,5

4,5

4,5

4,5

Scenario III 13% target for Poland

2,2

1,5

0 2010

2011

6

2012

2013

2014

Scenario II 19 % target for Poland

2015

2016

2017

2018

2019

2020

RES technical potential in Poland Using the existing potential of renewable energy sources in Poland is quite hard. Technical potential of RES in Poland

Biomass Co-firing in existing instalations (limit content of biomass in fuel 8-10% for technical purposes) low costs of investing

Water

12-14

necessity of transport and/or biomass storing low fuel energy content Bimass market is little developed in Poland 30-35

Biomass

Wind Production is unpredictable and ther is a need to maintain reserves in teh power system 14-17

Wind/earth

high cost of investment per MW quite low productivity potential resistance from ecologists

Wind/ Sea

8-10

Water

Technical potential may be estimated at 64 -76 TWh 7

Not used water potential, mainly on Wisła and Odra, big ecologists’ resistance against regulation of these rivers high cost of investment per MW

RE investment competitiveness

Investments are produce 1 MWh per year [PLN/MWh] Important power grid limitations 2500-3100

Little growth potential

2500-3100

3500

Low network limits, big growth of potentia, low limits at delivery of fuel

3000

1900-2400 1700-2000

PLN / MWh

2500 2000

No network limits, limits at delivery of fuel

1500

600-750

1000

250-300 500 0 Morskie farmy Lądowe shorefarmy wind Off shore wind On wiatrowe wiatrowe farm 8 farm

Elektrownie Hydro plant wodne

Agroenergetyka

Spalanie biomasy Biomass

combustion

Współspalanie Biomass cobiomasy firing

The most important actions for RE development in PGE

1

Plans for 1000 MW on shore wind farm bulding 2,2 TWh

2

Plans for off-shore wind farm bulding (1-3) 1,65 – 5 TWh

3

Development of co-firing and dedicated combustion of biomass in existing PGE instalations 2,1 TWh

4

Agroenergy sector development 2,2 TWh

5

Actions which support development of biomass market (for example creating electric platform of biomass trading)

9

Development of co-firing and dedicated biomass combustion in existing PGE instalations

2008 [TWh]

Prognoza 2013 [TWh]

0

ok. 0,20

El. Opole

0,15

ok. 0,26

El. Turów

0

ok. 0,20

0,17

ok. 0,75

EC Gorzów

-

ok. 0,13

EC Rzeszów

-

ok. 0,22

EC Bydgoszcz

-

ok. 0,20

EC Lublin

-

ok. 0,08

EC Kielce

-

ok. 0,03

Energetyka Boruta

-

ok. 0,04

0,32

ok. 2,1

OZE production

El. Bełchatów

ZEDO

2008 In 2008 PGE will produce about 0,32 TWh from RES in intalations which cofiring biomass

Power Station

Thermal Power Station In total

10

2013 In 2013 PGE is planning to produce about 2,1 TWh from RES in co-firing and dedicated biomass instalations

Needs of PGE

Needs of PGE

Renewable energy

Biomass

PGE need to incerease the production of electricity and heat from RES

Co-firing and firing biomass in existing PGE instalations

Agroenergy

In order to cover 30% of demand for biomass for cofiring and combusting in large PGE instalations, PGE should establish own plantations of 14 000 ha

Wind on shore

10 000 ha - existing area of energy crops in PL

Small hydro

11

Using the assets of KSC Polski Cukier

Cultivation area per each sugar factory of KSC: 6000 ha

From 27 sugar factories, which belong to KSC 20 of them where closed

Total land area for utilization for energy production in the closed sugar factories reaches 100-120 thous. ha

The production potential of renewable energy in the closed sugar factories reaches about 250 MWe

12

Agroenergy in PGE

For methane fermentation of biomass: 1t corn, beet 1 ha

80 m3 methan ok 4000 m3 methan

1 MWe x 1h

280 m3 methan

For keeping 1MWe of installed capacity it is required to supply biomass from 450-500 ha

13

Evolution of agroenergy (1) Biogas plant Production of electricity and heat in one biogas plant of 1MW will supply app. 4,000 households.

Closed sugar factory Cultivation of biomass

Production of biomass in the area of 6,000 ha

Storage and processing biomass Collecting and processing biomass for co-firing and combustion in existing installation of PGE- fuel needed to produce 0.03 TWh. 14

Evolution of agroenergetics (2)

PGE experience

1

2

Initial conception about use of willnow sugar factory, assume zakładała budowę biogazowni opalanych paliwem pochodzącym z pirolizy buraków, kukurydzy i innych płodów rolnych. W wyniku przeprowadzonych analiz stwierdzono, Ŝe proces ten jest zbyt skomplikowanych technicznie i niesie ze sobą szereg ryzyk (np. ryzyko częstych remontów i przestojów instalacji wynikających z nadmiernego gromadzenia się pozostałości procesu spalania). Ustalono, Ŝe bardziej odpowiednim procesem technologicznym do wykorzystania potencjału odstawionych cukrowni będzie budowa biogazowni. Produkcja energii i ciepła będzie oparta na procesie fermentacji beztlenowej produktów rolniczych (ciekłych i stałych). Paliwem dla tych instalacji mogą być : produkty roślinne, gnojowica, gnojówka itp,

15

Proces technologiczny

Piroliza buraków cukrowych

Fermentacja beztlenowa produktów rolniczych (pozostałości roślin, gnojowica, gnojówka)

Evolution of agroenergtics (3)

Actual localizations of sugar factories belonging to KSC

1

PGE consider using cultivation acreage (beets, corn) belonging to not-working sugar factories (20 belonging to KSC and 10 belonging to other companies)

2

PGE analyse possibility of building biogas plants in the sugar factory (purpose is: 250 MW in all Poland) as well as colecting and processing biomass (briquette, pellets) for combustion

Actually analysing localizations

and

co-firing

existing PGE instalations.

16

purposes

in

Basic assumptions for biogas plants Raw material for biogas plant 1

Energy crops

2

Animals wastes

3 Biomass from agriculture

4 Biomass from industry

Biogas plant

Fuel pre-treatment

Fermentation

Co-generation of heat and electricity

Menegment of fermetation wastes

Enrichment of artificial fertilizer

Basic products

Fertilizer 17

Electricity and heat from RES

Example instalation – Blåbjerg, Denmark Liquid batch eg. manure

Dosing tank

Oczyszczalnia Refinery

Extra batch (solid or liquid biomass) Zbiornik przedwstępny buforowy

Zbiornik przedwstępny buforowy

Separating fibres

Mixing tank

Biogas pretreatment

Biogas tank

Mainly biogas parameters

Tank

Animals excrrement

222 tons /day

Extra biomas

87 tons /day

Biogas production

3,1 mln Nm3 / year

Biogas storage possibility

4000 Nm3

Biogas useage

Biogas plant

Date of put into operation

1996

Biogas plant

Electric energy and heat from OZE

Feritilizer 18

Agroenergy as potential element of development of RES in PGE. Basic assumptions:






Current production OZE in PGE Co-firing and combustion of biomass dvelopment program in existing PGE. Agroenergy (150 MW) Off-shore wind farms (360 MW) On-shore wind farm (550 MW)

Target counted after energy productiona and sale by PGE and forecasted RE production by PGE in 2008-2020 14

Production structure of renewable energy in 2020. 13,5

TWh

12,6

7%

11,3

12

Water

10,2 9,1

10 8

7,0

7,2

7,4

7,6

5,7 6

6,0

6,3

6,1

6,4 6,6

3,3

3,4

2,7

4,9 3,5

3,6

3,7

3,8

5,4

6,0

4,3

45%

Wind

3,3 2,2

0

0,9

Biomass

0,3 TWh nadwyŜka

6,7 6,4

3,9

4 2

5,7

4,4

2,1

7,8

48%

8,1

1,0

2008 2009

2010 2011 2012

Cel - produkcja

2013 2014 2015

Cel - sprzedaŜ

19

2016 2017 2018

2019 2020

Produkcja OZE w PGE

nearly 1/3 from agroenergy sector

Summary

1

PGE consider using chosen withrawn sugar factories belonging to KSC for using their potential in agroenergy sector development (biogas plant, production and biomass preparing)

2

In one of five analysed by PGE withdrawn sugar factories of KSC it is planned to start-up a biogas plant. Letter of intent was signed.

3

PGE search for comapanies to cooperate in the agroenergy sector development in Poland.

20

Thank you fo your attention

Jan Edward Kowalski PGE SA

email: [email protected]

Łukasz Nagrodkiewicz PGE SA

email: [email protected]

21