The fluctuations in heat output from year to year are caused by fluctuations in outdoor temperatures: in 2009, the average outdoor temperature for the months of the heating season was 3.2°C and was equal to the 10-year average. In 2015, the average outdoor temperature was 4.9°C and was higher by 1.7°C compared with the long-term average, which resulted in a 7% lower heat output compared with the figure for 2009. 2015 was the warmest year on record. Electricity output fell by 3.0% in 2015 compared with 2009 as a combined effect of lower heat production and plant upgrades (e.g. conversion of boiler No. 1 at the Siekierki CHP plant to biomass firing).
In 2015, electricity sales and commercial balancing for PGNiG TERMIKA was performed through PGNiG, which enters into spot and dated power purchase contracts on the Commodity Derivatives Market. In addition, PGNiG was the key customer for and supplier of electricity generated at PGNiG TERMIKA’s plants. In 2015, the company made progress on its Regaty project (installation of a gas-fired cogeneration unit – general contractor selection procedure was held) and the Przemyśl Cogeneration project (design work was in progress, business contracts were signed). PGNiG TERMIKA is also seeking out and planning further gas-fired cogeneration projects, as an effort written into its business strategy.
In pursuit of the objectives and sub-initiatives under the Efficiency Improvement Programme, PGNiG TERMIKA implemented measures to reduce its controllable costs to enable and facilitate further growth. These measures included renegotiation of the Collective Bargaining Agreement, cuts to fixed costs in support functions, and identification of operational synergies within the PGNiG Group. The company’s 2016 Business Plan and 2017−2018 projections assume continued effort to deliver cost efficiency improvements across all areas of activity.
Starting from 2016, Poland and PGNiG TERMIKA will be subject to more stringent standards of gas and dust emissions, which necessitates upgrades to CHP assets. In 2015, capital expenditure of the Generation segment amounted to PLN 363.8m, of which PLN 65.2m was spent on environmental protection projects. Furthermore, in 2015 the segment continued some of the investment projects commenced in previous years. The most important of these were:
In 2015, a final building permit was secured for the CCGT unit and site preparation work continued. A grid connection/power evacuation agreement was signed with PSE SA, which will also build a 110/220 kV switchgear in the existing Żerań CHP plant substation. A contractor was selected for the project to adapt and connect the existing equipment of the Żerań CHP plant to PSE SA’s new 110 kV switchgear, with the scope of work specified in the connection agreement. In October 2015, an annex was signed to the connection agreement with OGP Gaz-System SA, providing that OGP Gaz-System SA would build the required gas pipeline under special-purpose legislation, based on design documentation furnished by PGNiG TERMIKA. A contract for the alteration of the cooling water system at the Żerań CHP plant was signed. Negotiations were held and final terms of reference for the delivery and installation of the new unit were issued. The deadline for submitting firm binds was end of March 2016.
2015 saw the final stage of construction and installation work related to biomass unloading, storage and feeder systems and the boiler’s ancillary equipment and electrical systems. Commissioning of the boiler and biomass unit was in progress. Work on a detailed engineering design was completed. A non-final building permit and a permit to operate the unit were secured. The boiler setting was dried and Technical Inspection Office acceptance procedures were performed. Electricity required to obtain green certificates was produced. A licence application was filed with the Energy Regulatory Office.
Construction and installation work was completed, and a new water treatment station was placed in service. Fitting of a cyclone filter at the K9 steam generator continued. A contract was awarded and signed for the construction of a cyclone filter for the K7 steam generator, and demolition and construction work commenced. Work on updating the concept for refurbishment of the Pruszków CHP plant is under way.
CHP plant A tender was announced for the delivery and construction of the boiler house. Site visits were held with prospective contractors. The bid submission deadline expired on the last day of January of 2016.
In 2015, as part of the ‘Construction of a CCGT Unit in Stalowa Wola’ project, executed jointly with Tauron Polska Energia SA, the Group continued the installation of the steam and gas turbines and construction and assembly work in the cold water pumping station, as well as the installation of cable ducts, cabling and wiring, conductor lines and the lightning. The Group also performed a water test of the recovery boiler and the condenser and completed construction work on the San river weir. The project was delayed by damage to the underground reinforced-concrete canal in September 2015.
In 2015, the general contractor for the project, Abener Energa SA, committed a material breach of the contract with EC Stalowa Wola. In December 2015, EC Stalowa Wola demanded that the contractor perform the contract properly or face its termination. As the contractor failed to rectify the breach on time, the employer resolved to terminate the contract. EC Stalowa Wola intends to call on the general contractor to carry out a detailed as-built survey, which will serve the company, its external adviser, TAURON Polska Energia SA, PGNiG and financing banks as the basis for preparing a detailed plan for continuation and completion of the project.
