ENEA will build state-of-the-art photovoltaic farms on the land of Bogdanka mine
ENEA is going to build photovoltaic (PV) farms with the total capacity of approx. 30 MW in the Province of Lublin. The state-of-the-art renewable energy generation sources will be built on the land owned by LW Bogdanka, the mine operator, and located in the communes of Puchaczów and Cyców. The cooperation of companies involved in the project will be based on the innovative ‘corporate PPA’ formula, which will significantly reduce the cost of energy purchase for the end user, i.e. the mine. The relevant letter of intent was signed by the CEOs of both companies in the presence of Artur Soboń, Secretary of State in the Ministry of Investment and Economic Development.
It is yet another project leveraging the synergies of the energy conglomerate ENEA, the majority shareholder of LW Bogdanka, and the mine operator. Part of the land owned by LWB is ideally suited to be used for the purposes of solar energy generation from PV installations. This goes well with ENEA’s plans of dynamic development of renewable energy sources in its generation potential. Under the planned cooperation, PV installations with the total annual electricity generation capacity of approx. 30,000 MWh will be built on the total area of about 55 ha in the coming years. All the zero-emission energy generated in the new installations will be used by LW Bogdanka for the purposes of the mine and its production processes.
ENEA will be selling the energy generated in the newly-built PV installations under the corporate Power Purchase Agreement (PPA) formula. Corporate PPA is a long-term agreement for the energy buyer (end user) to purchase electricity generated in a renewable energy project directly from the energy producer, so this formula will help LW Bogdanka reduce the cost of energy purchase significantly. On the other hand, thanks to the corporate PPA, ENEA, as the owner of the installation, will have a guarantee that all the energy generated will be sold at mutually beneficial prices.
– The project is an important element of the implementation of Poland’s Energy Policy, which assumes a substantial rise of RES in the country’s energy mix. It is also another very positive initiative undertaken on the land owned by LW Bogdanka. The company continues to strengthen its position of a business leader in the Province of Lublin who is responsibly planning the future of both the company and the region. The project – building on unused land photovoltaic farms which will be supplying the mine with electricity– fits into the broad context of the development of an innovative energy and natural resources zone around the Bogdanka mine. It will perfectly complement the planned power plant for synthesis gas (syngas) produced from coal in Stara Wieś, whose construction will increase demand for coal from Bogdanka. This in turn will secure the sales market for the mine and jobs for its employees for many years to come – said Artur Soboń, Secretary of State in the Ministry of Investment and Economic Development.
– ENEA Group consistently pursues its objectives and continues to develop its renewable and conventional energy sources in the most economically viable way. It is part of the rational transition of the entire sector, in which we strive to maximally leverage synergies within our existing value chain and the potential of each and every ENEA Group company. The project of building PV farms in the immediate vicinity of the Bogdanka mine will help make the best use of the mine’s land while satisfying its demand for energy with environmentally friendly electricity generated using cutting-edge renewable technologies. The adopted model of cooperation, corporate PPA, will allow for the most efficient use of the Group’s assets and increase the security of energy supplies to the mine, bringing optimum business benefits to both parties involved – commented Mirosław Kowalik, President of the Board & CEO, ENEA S.A.
– As a large company, we support the development of our region and act as a responsible employer, providing job security and stability to our employees and their families. Therefore, we are continuously working on further development of our company, planning new initiatives aimed to strengthen our market position. The photovoltaic farms that are going to be built on our land will supply the production processes in our mine with clean energy while bringing down our overheads and raising our competitiveness. Like the planned power plant in Stara Wieś, which will generate energy from syngas produced from our coal, it is an example of our responsible thinking about the future of the Bogdanka mine within ENEA Group – stated Artur Wasil, President of the Board & CEO, LW Bogdanka S.A.