Energy Management

Currently, the ORLEN Group is Poland’s largest industrial electricity producer and the fourth largest electricity producer in Poland. The ORLEN Group has approximately 1.8 GWe of installed capacity (as at the end of 2019): two cutting-edge CCGT units located in Płock and Włocławek as well as the Płock CHP plant – the largest industrial facility of its kind in Poland and one of the largest in Europe. Their output is sufficient to meet the requirements of the ORLEN Group’s own plants, with surplus energy sold to external customers.

 PKN ORLEN closely monitors worldwide and European trends on the energy market, adjusting its operations to respond to the resulting challenges. Within the next several years, PKN ORLEN plans to become a leading producer of clean energy, which is increasingly in demand. The Group is working on an offshore wind power project through its subsidiary Baltic Power, holder of a licence to construct wind farms on the Baltic Sea with a total capacity of up to 1,200 MWe.

In 2019, PKN ORLEN announced a tender offer to buy up all shares in the Energa Group. The transaction is in line with PKN ORLEN’s strategy. The successful purchase of the shares in April 2020 will make it possible to expand its power generation business. As for the Energa Group, it owns more than 50 RES generation assets, mainly across the hydro, onshore wind and solar PV segments, as well as an extensive 188 thousand km distribution network, covering almost a quarter of Poland’s territory. Thus, by acquiring the Energa Group, PKN ORLEN will gain a large distribution network spanning northern and central Poland as well as a sizeable renewables portfolio, which is of material significance to its planned offshore wind farm projects. If the transaction is closed, PKN ORLEN will also be able to effectively balance its conventional capacities with renewable sources, while its existing surplus output will be utilised by the Energa Group.

At the ORLEN Group, we are committed to continuous efforts towards operational excellence within such areas as production process optimisation, distribution losses and improved efficiency of process units. All measures aimed at achieving the stated objectives are carried out with due regard for the natural environment and local communities.

In 2019, the completed investment projects enabled the ORLEN Group to reduce energy consumption as follows:

• Electricity – by 1,027 MWh, which corresponds to the energy volume consumed by approximately 500 households over a year
• Heat in steam – by 415,395 GJ, which corresponds to the energy volume necessary to bring water in 496 Olympic pools to a boil

including:

ORLEN Lietuva:

Electricity – 344 MWh

Trzebinia CHP plant (ORLEN Południe):

Electricity – 183 MWh

UNIPETROL

Electricity – 500 MWh

Heat in steam – 380,879 GJ

Płock CHP plant:

Heat in steam – 34,516 GJ

The savings were calculated based on data from PKN ORLEN, ORLEN Południe, Unipetrol and ORLEN Lietuva. The main criterion in selecting the reporting companies was their business materiality for the Power Generation area. The figures are for the Power Generation area only, i.e. CHP and CCGT units.

* Energy consumption includes own consumption by energy generation units and internal transmission losses.
** Energy sales include sales to third parties and supply to the ORLEN Group’s internal units.
*** Total consumption is calculated as the difference between each unit’s consumption of energy in fuel and energy sold to external and internal customers. The 2018 electricity consumption data has been updated.

The basis for the calculations was data from tariff metering instruments. The figures above are for the Power Generation area only, i.e. CHP and CCGT units.