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PGNiG to Make Renewables Part of its Strategy

Source: www.gulfoilandgas.com 6/9/2020, Location: Europe

By the end of this year Polish Oil and Gas Company (PGNiG) will present an updated strategy for the entire PGNiG Group. One new strategic initiative will be to build the segment of renewable energy sources. The Group may spend even as much as PLN 4bn on its creation and development.

“Over the recent weeks we have been indicating how we intend to implement the announced shift towards green energy, presenting our plans related to the production and use of hydrogen and biomethane. Today, we are revealing our plans even more by showing how important a place will be assigned to renewable energy sources in the Group’s updated strategy,” said Jerzy Kwiecinski, President of the PGNiG Management Board. “Entering a new business line, namely RES, will allow us not only to build the value of the company, to increase and stabilise its revenue, but also to engage more intensively in the transformation towards a low-carbon and zero-emission economy, the CEO added.

Over the next few years, beyond 2022, PGNiG intends to spend even as much as PLN 4bn on building the RES segment. Ultimately, this will help the Group achieve generating capacity of up to 900 MW, making PGNiG one of the leading producers of energy from renewable sources in Poland.

“In building and developing the RES segment, we are most interested in wind power and photovoltaic projects. These technologies offer the greatest investment potential. Considering our investment capabilities, the most attractive projects for us are those already existing or at a very advanced stage of development. There is enough of such projects on the market,” emphasized Arkadiusz Sekscinski, Vice President of the PGNiG Management Board, Development. “At the same time we also intend to build our own development competencies in this area by developing, for instance, photovoltaic projects on the sites and areas owned by the PGNiG Group, he added.

PGNiG believes that RES will help stabilise its financial performance. Renewable energy sources are not sensitive to movements in hydrocarbon prices, which have a strong effect on such segments of the PGNiG Group’s business as Exploration and Production, and Trade and Storage.

“Today we are sending a signal to investors to show what we want to do to make our business model even more balanced and resilient to market headwinds. We will probe the RES market and look for investments that will provide us with an adequate rate of return as well as stable cash flow. To this end, we plan to spend even as much as PLN 4bn on the best projects. Within this cap, we will launch new initiatives, but also buy existing projects from the market,” commented Przemyslaw Waclawski, Vice President of the PGNiG Management Board, Finance.

PGNiG is already performing investment simulations and will seek to establish cooperation with potential partners. First decisions regarding investment in RES may be made even before the strategy is updated.

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