Partnership agreed for Polish plant

24 September 2013

Four state-owned companies have agreed the shareholdings they will each hold in the entity set up to build and operate Poland's first nuclear power plant. Utility Polska Grupa Energetyczna (PGE) will retain a 70% stake in the company, PGE EJ1.

In September 2012, Polish utilities PGE, Tauron Polska Energia and Enea, together with copper supplier KGHM Polska Miedz, signed a letter of intent to participate in the project by buying shares in PGE EJ1, an entity of PGE set up to build and run the plant.

The companies have now signed a draft shareholders agreement setting out the future ownership structure and the principles of operation of PGE EJ1. Under the agreement, PGE will sell 10% of the total share capital of PGE EJ1 to each of Tauron, Enea and KGHM. It will keep a controlling 70% stake in the company. The agreement also describes the principles of cooperation of all the parties regarding the project to prepare and build a nuclear power plant in Poland.

The agreement remains dependent on the corporate bodies of each of the companies granting final approval for the transaction. In addition, the necessary anti-trust approvals must be obtained. Also, a resolution on Poland's nuclear energy program must be adopted by the country's Council of Ministers. This is expected later this year.

Poland's plans

The Polish cabinet decided early in 2005 that for energy diversification and to reduce carbon and sulfur emissions the country should move immediately to introduce nuclear power, so that an initial plant might be operating soon after 2020. A resolution by the council of ministers then called for the construction of at least two plants in Poland.

In order to deliver the government's objectives, PGE announced in January 2009 plans to build two nuclear power plants. In February 2012, PGE's supervisory board approved the construction of two nuclear power plants by 2029 as part of a strategy plan for the period 2012 to 2035.

In January, WorleyParsons was awarded a contract by PGE to carry out site characterisation, licensing and permitting services. Three potential sites are under consideration: Choczewo, Gaski and Zarnowiec.

PGE plans to install around 3000 MWe of nuclear capacity, with the first unit coming online by 2025.

Researched and written
by World Nuclear News