The cost of the abandoned project to build a coal-fired unit at the Ostrołęka Power Plant has been set at nearly PLN 1 billion, according to Energa’s announcement. The company announced that the final amount is approximately PLN 392 million lower than that provided for in the agreement of 2021.
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“Elektrownia Ostrołęka special purpose vehicle and the general contractor of the contract for the construction of a coal-fired unit in Ostrołęka set the value of the remuneration payable at PLN 958 million, i.e. approximately PLN 392 million below the amount provided for in the agreement of June 25, 2021. This means that for Energa SA and Enea SA fell PLN 479 million of the costs of the coal project each, “Energa announced in Friday’s announcement.
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It was added that a provision was set up for the value of the cost of settling the coal project in 2020, therefore the settlement amount attributable to Energa will not be charged to its current result. In turn, Enea announced that the impact of this event on the group’s consolidated net profit and unit net profit for 2022 will amount to PLN 31.1 million.
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“When determining the final amount, all coal project implementation costs due to the general contractor in connection with the implementation of this project were taken into account, taking into account the stage of implementation, less recoverable values resulting from the management of products produced for the coal project. This amount also includes the cost of building the infrastructure that will be adapted to the construction of the gas project “- explained in the Energi press release.
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Watch on TVN24 GO: Politics in ruins. “A coal power plant as a political idea, economically unjustified, it was a balloon”
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There was supposed to be a coal block, a gas block was to be built
The agreement on the settlement of the coal investment was one of the accompanying documents concluded on June 25 last year. an annex to the contract with the general contractor of the power unit in Ostrołęka. At that time, the subject of the contract was changed – from the implementation of a coal-fired unit to a gas-steam unit. The decision on the technological conversion of the investment was made in June 2020.
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It was recalled that on March 24 this year. CCGT Ostrołęka, a special purpose company belonging to Energa from the Orlen Group, ordered the general contractor to start work under the contract for the construction of a gas and steam unit in Ostrołęka.
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“The unit with a capacity of approx. 750 MW will be a stable and flexible source of electricity from natural gas. Together with other low-emission investments of the Orlen Group, the new unit in Ostrołęka will allow balancing the national power system until Poland reaches the target energy mix of zero-emission renewable sources and nuclear power plants “- summarized.
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The power plant in Ostrołęka – a standard PiS investment
Construction of coal-fired block C of the Ostrołęka Power Plant was to be one of PiS’s key investments. In 2018, the then Minister of Energy, Krzysztof Tchórzewski, announced that the largest investment in eastern Poland was to be built within five years.
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– It is to be the largest investment in eastern Poland in 30 years. (..) It will be an element of security for the eastern part of Poland, because our part of the country has been deprived of this energy security so far. Let us all keep an eye on it and make sure that this power plant in Ostrołęka is built in a natural way and on time – he said.
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At the end of November 2019, in an interview for “Dziennik Gazeta Prawna”, the then Minister of Climate, Michał Kurtyka, declared that the unit in Ostrołęka would be the last Polish coal block.
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Start of construction and demolition
Work on the design of a new coal-fired unit at the Ostrołęka Power Plant began in 2009. In September 2012, Energa suspended it, unable to obtain financing from the market. The company decided that only the participation of a strategic partner would enable the construction.
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In the fall of 2016, Enea bought half of the shares in the project. In the spring of 2018, the GE Power and Alstom consortium won the tender for the construction of a 1,000 MW hard coal-fired unit for just over PLN 6 billion. The order to start construction works was issued at the end of 2018, but construction was suspended in spring 2020.
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In May 2020, Energa and Enea announced that the special purpose company had created a write-down updating the value of the investment in Ostrołęka at PLN 1 billion. In March 2021, the demolition of the built elements began.
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photo-source">Main photo source: concrete24
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