About Enea Group

Enea Group Structure

Industry profile

The current Polish energy market was shaped in 1997 when the Energy Law Act was adopted and the Energy Regulatory Office was established.

Energy Regulatory Office determines the prices of the energy transfer as well as the property rights from the certificates of origin for electricity and CO2 emission allowances. Further significant changes in Polish energy sector occurred following the accession to the European Union in 2004. Two liberalising directives regulating the rules of the European the electricity and natural gas market were transposed into national law. Important changes also took place in 2007 when the domestic retail customers were given the right to purchase energy from any chosen seller.

The energy market in Poland is comprised mainly of energy groups: ENEA, PGE, Tauron, Energa and Innogy. Pursuant to the Energy Law Act, a license from the President of the Energy Regulatory Office is required to carry out an economic activity in the field of transmission or distribution of electricity. The main distributors of energy in Poland are: ENEA Operator Sp. z o.o., TAURON Dystrybucja S.A., PGE Dystrybucja S.A. and Energa Operator S.A.

There are three groups of electricity producers on the Polish market: system power plants, combined heat and power plants and renewable energy sources. 

Companies that trade in energy are a special group of entities. They were created in 2007 as a result of the separation of trading and distribution activities of power distribution companies.

The energy trade market is regulated by the Energy Law Act and is currently divided into three segments: the contract market, the stock market, the balancing market. The energy trade is based on bilateral contracts (agreements) entered into by the energy producers and energy trading companies and end users.

The stock market includes trading at the power exchange (Towarowa Giełda Energii S.A. or TGE). The energy trading at TGE takes place mostly at the Day-Ahead Market (DAM). DAM is run a day ahead of the 24h day during which the energy is actually supplied.

The balancing market is a specific area of energy market in which the differences between the transactions made by individual market participants and the actual demand for electricity are balanced.

On the Polish market, the majority of electricity comes from conventional fuels (mainly coal and lignite), but energy companies are increasingly restructuring in terms of increasing the share of renewable energy production. This is indirectly due to the obligations arising from e.g. the climate package 3x20, according to which before 2020 Poland is obligated to achieve 15% share of RES in the energy consumption. In order to increase the share of these sources in the electricity production balance in the country, due to high investment costs, it is necessary to use appropriate support systems, which guarantee their systematic development. According to the draft Energy Policy of Poland by 2040, announced in November last year which is currently at the stage of consultations, in 2030 the target share of RES in the energy balance is 21%, which constitutes 27% share in the production of electricity. The same year, 60% of the electricity production will come from coal and in 2040 this share is expected to drop below 30%.

Also according to the plans of the Ministry of Energy, in 2033 the first nuclear unit will start running. Other units will be added every 2 years – the last one in 2043. The total capacity of the first nuclear power plant in Poland will be 6-9 GW. An important factor in the development of the Polish energy market is the capacity market, which has to ensure a stable supply of electricity to households and industry, as, according to analyses, after 2020 there may be a deficit of the required capacity level. The project is planned for 2016-2046. Through capacity auctions, the capacity will be contracted few years in advance to ensure that the demand in a given year is covered. 

This will ensure stable functioning of the existing generation sources, safe development of RES, development of energy storage facilities and investments in new power plants. 

The energy market in Poland consists mainly of four investment groups: ENEA, PGE, Tauron, Energa.

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

ENEA Group has published the eighth sustainability report. As in the previous years, due to environmental reasons, the document is available only online. Prepared according to international standards, the report concerns environmental, social and economic results of the Group in 2018. For the first time ENEA relates its projects to the commitments the company made to achieve the United Nation’s 17 Goals of 2030 Agenda for Sustainable Development. ENEA’s fulfilment of these commitments shows not only the company’s concern for quality of life, natural environment and Poland’s energy security, but also its awareness of global challenges.

Report CSR 2018