Polish Atomic Programme: shareholder agreement concluded

ENEA, KGHM Polska Miedź and TAURON Polska Energia will purchase from PGE Polska Grupa Energetyczna 10 per cent each (a total of 30 per cent) of shares in PGE EJ 1, responsible for the preparation and construction of the first in Poland atomic power plant with the capacity of ca. 3,000 MW.

The shareholder agreement concluded on 3 September 2014 obliges the parties to the common, proportionate to the shares held, financing the activities connected with the implantation of investments in the period of three subsequent years. The partners anticipate that the total costs by this title will amount to around PLN 1 billion.

At that time, it is particularly planned to select the strategic partner, technology provider, contractor for the atomic power plant in the turnkey formula (the so-called EPC - engineering, procurement, construction), supplier of the atomic fuel and obtaining the financing for the project.

To this end, integrated proceedings will be conducted, which will join the key elements of the atomic project in one tender. Currently, preparations are taking place in the core areas which will enable the commencement of such proceedings at the beginning of the next year. What is being agreed is e.g. the mode of its conducting and conclusion of an agreement is being finalised with the contract engineer who will support the company in the proceedings and the whole investment cycle.

The atomic programme which has been so far realised by PGE Polska Grupa Energetyczna, is of a national character from today. The cooperation of four companies increases the possibility of constructing the atomic power plant in Poland – says Zdzisław Gawlik, Vice-Minister of the Treasury.

The nuclear energy is one of the strategic development directions of PGE Polska Grupa Energetyczna. The most important advantages of the technology include practically zero emissions of CO₂, a relatively low, in relation to other technologies, share of the fuel in the costs of generation and similarly low sensitivity to potential changes in prices of this fuel – says Marek Woszczyk, President of the Board of PGE Polska Grupa Energetyczna.

PGE Capital Group remains the leader of the atomic programme, and PGE EJ1 company is to be the power plant's operator in the future. The organisational and competence preparation of PGE EJ1 to that role, i.e. the entity responsible for its safe and efficient operation, is also a goal of the shareholder agreement.

The condition for purchasing the shares in PGE EJ1 by Polish business partners is obtaining an approval for the concentration issued by the President of the Office for Competition and Consumer Protection. The respective motion was filed on 1 August 2014. The partners expect that the position of the office should be known already this year.

The decision on their further engagement in the project of construction of the first atomic power plant, expected in 2017, will result from e.g. the analysis of the macroeconomic environment, the shape of the energy and climate policy and regulatory mechanisms, guaranteeing the economic foreseeability of the investment.

For KGHM the participation in the project is a chance of entering one of the most attractive sectors, not correlated with the economic situation on the metal market and a possibility of securing the stability of electricity supplies and prices for the needs of the operations. For energy companies this is a way for obtaining an alternative, non-emission source of electricity and diversification of the generating portfolio. It is mainly about a possibility of ensuring the reliability of supplies of electricity for Polish companies and households in the future – says Zdzisław Gawlik, Vice-Minister of the Treasury.

Nuclear energy, the source of reliable and safe electricity in the long run will strengthen the position of PGE Polska Grupa Energetyczna as a leader not only in the segment of generation, but as energy security provider – says Marek Woszczyk, President of PGE Polska Grupa Energetyczna.

The project of constructing the first Polish atomic power plant is a great chance not only for us, companies participating in it, but for the whole Polish power industry. Currently, the strategy of ENEA Group provides for expenditures for the preparation for the implementation, i.e. till the moment of finalising the integrated proceedings. Yet, we all are aware that the key element of a success will be a rational support from the state, even as the capacity market mechanism – says Krzysztof Zamasz, President of the Board of ENEA.

Our participation in the project is a chance for a long-term guaranteeing of electricity supplies for the core operations of KGHM at a predictable price and therefore becoming independent from market purchases. Additionally, the project is a security against strict goals of the climate and energy policy of the European Union. What's more, we are aware of the fact that the start-up of the atomic power plant may be a chance for the development of the Polish economy ­– says Herbert Wirth, President of KGHM Polska Miedź.

In ten odd years several hundred megawatts in the generating portfolio of TAURON Group is to come from the nuclear energy. It stems from our corporate strategy providing for the start-up of new capacities in the most efficient technologies. Currently, we are diversifying fuels, realising coal, gas and RES-based investments. The atomic project will allow us e.g. to increase the percentage share of non-emission technologies in the Group. From the beginning we supported the realisation of the first nuclear project in the present formula, i.e. with the engagement of the key Polish entities – says Dariusz Lubera, President of the Board of TAURON Polska Energia.