About ENEA Group

ENEA Group Structure

Industry profile

The main legal act regulating the Polish energy market is the Energy Law Act, supplemented by the associated regulations/ implementing acts, which are introduced most often by the Minister of Economy or Environment. Adoption of the Energy Law of April 1997 is regarded as the key moment in the process of establishing the domestic market. The Energy Regulatory Office (ERO) was also established at that time. The Office is still responsible for setting the prices of transmission of electricity as well as of the property rights from the certificates of origin of electricity and carbon dioxide emission allowances.

After Poland joined the European Union, national law had to be harmonised with the EU laws. From then on, European legislation became the basis for developing national regulations governing the energy market. The key European document was the Directive concerning common rules for the internal market in electricity. The Polish market was also significantly affected by the laws, which liberalized the market in 2007, allowing individual consumers to purchase electricity from any operator.

Nowadays, electricity is a commodity traded on an open, competitive market. Electricity is similar to other goods, as it is generated by producers, subsequently taken over by market intermediaries, to finally reach individual customers, businesses and institutions. Just as all other produced goods, electricity must be transported to the final consumer, which is effected via the transmission and distribution grid.

The energy market in Poland is divided among several energy groups, with the major ones, apart from ENEA, being: PGE, TAURON, Energa (Orlen Group), ZE PAK and Innogy (operating in Warsaw only). Pursuant to the Energy Law, special permits (concessions) issued by the ERO president are required to carry out an activity in the electricity transmission and distribution market. Leading electricity distributors in Poland include: ENEA Operator, PGE Dystrybucja, TAURON Dystrybucja and Energa Operator.

The continual strive for building an open and competitive market is based on the assumption that both generation and sales of electricity are not subject to a natural monopoly. Moreover, market mechanisms, understood as competition between energy groups, guarantee high quality of the provided services, reliability of the national power system, as well as low electricity prices. Access to inexpensive electricity is necessary for the economy, in particular for local industrial products to be able to compete in international markets and thereby build Poland’s competitive advantage.

In February 2021, the Council of Ministers approved “Poland’s Energy Policy until 2040” (PEP2040) - a new strategic document setting the development directions for this sector. According to that document, in 2040 more than half of the installed capacity will be in zero-emission sources.  A special role in this process will be played by adding offshore wind power generation to the Polish power system and the commissioning of a nuclear power plant. These will be the two new strategic areas and branches of industry to be established in Poland. PEP2040 is one of nine integrated sectoral strategies built on the Strategy for Responsible Development. PEP2040 is consistent with the National Plan for Energy and Climate for 2021–2030. PEP2040 contains a description of the condition and considerations of the energy sector. The document identifies three pillars of PEP2040, eight detailed objectives of PEP2040 and the actions necessary to accomplish them, as well as strategic projects. It lays out the geographic coverage and presents the sources of financing for PEP2040 .

Key elements of PEP2040:

• Energy transition, including energy self-sufficiency.
• Increase in the share of RES in all sectors and technologies. In 2030, RES should cover at least 23% of final gross energy consumption, with the RES share being at least 32% in power generation (mainly wind and PV power), 28% in district heating (increasing by 1 p.p. y/y), 14% in transport (with a big contribution of electromobility).
• Offshore wind power generation – installed capacity will reach: from approx. 5.9 GW in 2030 till approx. 11 GW in 2040.
• Installed photovoltaic capacity will increase considerably: approx. 5–7 GW in 2030 and approx. 10-16 GW in 2040.
• In 2030, the share of coal in electricity generation will not exceed 56%, and given the increased prices of CO₂ emission allowances it may drop even lower to 37.5%.

Strategy

ENEA actively takes part in the transformation of Polish energy and oil sector. The company has updated the Group’s Development Strategy and its goals until 2030, with the perspective towards 2035. Implementing the updated Strategy will help achieve the climate goals both on the domestic and European level. ENEA Group has announced that in 2030 the share of zero- and low emission energy sources will constitute 41% of the total electricity generation, and in 2030 ENEA’s goal will be to raise that rate to 60% in 2035. A sustainable and responsible transformation of the Group’s energy generation assets will significantly lower the level of unit CO2 emissions. The second pillar of the Group’s transformation will be the investments in new integrated products and services diversifying the present activity of the Group and employing state-of-the-art digital and IT technologies (such as Internet of Things, Blockchain etc.), which will create added value for both the company and its customers.

ENEA Group’s Strategy is aimed at strengthening the Group’s market position in all areas of its activities as well as at investing in new technologies, which will ensure competitive advantage, mainly in the customer service area. Furthermore, implementation of the updated Strategy also assumes:

• Sustainable and consistent growth of the Group’s value;
• Increase in electricity sales to retail customers up to 24.8 TWh in 2030, which will give the Group a 15% share in the electricity sales market;
• A fourfold increase in RES share in the electricity generation in 2030 due to the employment of state-of-the-art and economical technological solutions;
• Over PLN 64 billion CAPEX, including PLN 22 billion for transforming generation assets by 2035 while maintaining the Group’s security and financial stability;
• Increase expenditures in the Group’s CAPEX budget to 2% with a view to innovative research and development in ENEA Group in 2030;
• Further diversification of business activity and the growth in EBIDA from new business lines.

See the presentation on the Strategy here.

Sustainability report

For the ninth time this year, the ENEA Group sums up its activities in another sustainable development report. The report contains a description of non-financial aspects of the Group’s business and activities focused on striking a balance between economic growth and energy security, improving the quality of life and protecting the environment. The Group’s most recent sustainable development report, prepared in compliance with international non-financial reporting standards, is – as has become a tradition – available online.

CSR Report for 2019