Investments condition the existence of each and every company, not only the power industry one. Nonetheless, our sector is in a particular moment of time right now. Today’s plans and investments condition the future not only of the power sector companies but will have an impact on the entire domestic economy.

The lack of an appropriate number of investments together with non-sustainable units in operation will cause the necessity of purchasing the CO2 emission allowances and this fact will have to be reflected in the electric energy price. We talk to Henryk Tymowski, Vice-chairman of the Board, about the activities and plans aiming at the repowering of PKE.

Currently, two investments are being carried out in PKE: the construction of the 50 MW heat and power unit in Bielsko-Biała and the construction of the Renewable Energy Sources power unit in Jaworzno III Power Plant – Plant II of also 50 MW capacity. Why did we make a decision to build 50 MW units if more and more frequently we hear experts stating that 460 MW is a minimum and why such technologies were selected? In Bielsko-Biała we construct a unit in accord with the heat demand thus it is the most optimum unit from the point of view of this particular heat market. The superior parameter is a reliable supply of heat to the client. A unit of higher capacity would not be economically reasonable. At present times, one does not build for the future. 50 MW is an optimum volume of electric energy in order to generate heat in cogeneration that is in the most efficient manner in a way to obtain the best ratio of electric energy and thermal energy. The Renewable Energy Sources unit in Jaworzno II is also the optimum unit to fire biomass. We intend to have the unit constructed by 2012. The boiler operating in this unit will fire 80 percent of the so-called green biomass i.e. forest biomass and 20 percent of agro-biomass. And also in this case, the size of the unit is optimum from the point of view of this power plant and logistics of such significant amount of biomass supply.

Is there any fear that there may be difficulties in biomass supplies?

From the information gathered as per today, the number of offers significantly exceeds our biomass demand.

When do you plan to commence the groundwork in Jaworzno?

In accordance with the schedule, the contractor will enter the construction site on August 1, 2010 i.e. in the 3rd quarter of the year. The site preparation should be carried out in the 2nd quarter. The unit is to be commissioned by the end of 2012. Currently, pursuant to the resolution of the Board, we are waiting for the bids to be submitted by potential contractors by March 8.

What is the future of Południowy Koncern Energetyczny repowering policy like? Can we say anything at present stage?

PKE investment plan, Tauron and PKE investment plan to be more precise, is very broad. The two investments mentioned above are the most advanced ones as we obtained the corporate permits in case of these two investments i.e. we have the consent of the Supervisory Board and the consent of the General Assembly of the Shareholders. We are talking about the construction of new capacity in coal technologies – the construction of 50 MW heat and power unit in Bielsko-Biała and 50 MW Renewable Energy Sources power unit in Jaworzno. At this point I would like to emphasize that the latter is not a construction of the biomass-fired boiler but the entire Renewable Energy Sources power unit.

Regardless of those two investments, which already entered particular realization stages, we are working on further ones. If we meet all the requirements necessary to commence the factual investment planning we will be able to draw up specific and hopefully binding operational plans. The following investments are waiting for the plans to become more specific: the construction of the 309 MW Poligeneration Power Plant in Kędzierzyn-Koźle - Blachownia Power Plant, installing new capacity applying coal technologies – 910 MW power unit in Jaworzno and 960 MW in Blachownia Power Plant. We are also considering the construction of new capacity operating in cogeneration – 135 MWe heat and power unit in Katowice Heat and Power Plant as well as the erection of a second 460 MW power unit most probably in Łagisza Power Plant. These are the closest in time and very significant investments not mentioning the ones which concern us directly i.e. the retrofit of the power generation units. In this case, NOx emission reduction installation is the most crucial investment plan. This investment, in turn, is forced by certain legal provisions related to the European Union regulations.

So we have information on the repowering in the company and future investments. Yet it is common knowledge that when the new is created the old and unprofitable needs to be got rid of. Is Halemba Power Plant shutdown being planned? What is the reasoning behind such a decision?

Tauron Group Strategy presumes Halemba shutdown as soon as possible. Current operation is driven solely by the necessity of supplying heat to Ruda Śląska.

Operation of Halemba Power Plant in the power system, taking into account the existing capacity of various PKE power plants, is ungrounded from the technical and economic point of view.

How long will Halemba Power Plant supply heat to PEC Ruda Śląska thus to the southern Ruda Śląska dwellers?

The heat market in Ruda Śląska has technical capabilities of taking over the heat supplies by other entities which are capable of supplying the medium to the inhabitants of Ruda Śląska.

Halemba Power Plant will remain the heat distributor until other sources are fully secured.

What will happen to the employees of the plant after it is shut down?

We do not plan layoffs. All present, Halemba Power Plant workers will remain within the structures of Południowy Koncern Energetyczny.

Thank you for the interview.

Patrycja Hamera