Production capital

Natural capital Human capital
Production capital Production capital

The carrying amount of all of TAURON Group’s assets is more than PLN 35 billion. TAURON Group’s assets are very diverse, which is due to both the characteristics of the individual segments, as well as the significant differences in the age of the individual machines and devices.

The development of the Group’s operations is in line with the European and global trends, and the coming years will be a period of the generation segment’s transition. The plan is to retire inefficient coal-fired units and develop new low and zero emission sources. It is assumed that by 2025 their share in the installed capacity will stand at around 30%, and in 2030 reach over 65%. Such actions will allow for reducing the emission of all pollutants by 2030, including CO2 emissions by more than half.

As of the end of 2020, almost all of 120 MW units were shut down, except for two at the Stalowa Wola Branch, whose shutdown date was postponed until February 2021 (970 MW in total). Further units with a total capacity of 2.5 GW, mainly the 200 MW units, will be decommissioned in the years 2026-2030, while at the same time the development of low and zero-emission generation sources will be continued.

In 2020, two high-efficiency conventional units were commissioned: a 910 MW coal-fired unit in Jaworzno and a 450 MW CCGT unit in Stalowa Wola. These units have contracts in place as part of the Capacity Market and in the coming years they will play an important role in the functioning of the National Power System. Additionally, the construction of a 5 MW photovoltaic power plant on TAURON Group’s post-industrial land in Jaworzno was completed in 2020, and the construction of photovoltaic farms with a total capacity of 6 MW in Choszczno was in the final stage.

The largest contribution to TAURON Group’s financial result is made by the Distribution Line of Business, in which the largest capital expenditures are also incurred – the region of PLN 2 billion per annum. The changing environment, in particular the development of renewable energy sources, also of the prosumer type, has a large impact on the need to upgrade and expand, as well as adapt the existing grid infrastructure. In addition, the growing expectations of customers and the approach of the Energy Regulatory Office have an impact on the need to improve the quality and reliability of electricity supply. In view of the above, TAURON Dystrybucja in implementing a cable grid construction program, increasing the share of cable lines in the distribution grid and thus improving the quality indicators, security of electricity supply and resistance against weather conditions, including the ever more frequently occurring sudden (freakish) weather conditions associated with climate change.

In 2020, the largest capital expenditures in the Generation line of business were incurred to finalize the construction of a 910 MW power generating unit in Jaworzno and to adapt the generating units to the new environmental standards.

Location of TAURON Capital Group’s key assets

Key data on TAURON Group’s production capital in 2018-2020

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Key data on the capital
Hard coal extracting coal mines 3 3 3
Hard coal fired power plants [quantity] 6 5 5
Hard coal fired power plants [installed capacity] 5.2 GWe; 1.3 GWt 4.3 GWe; 1.35 GWt 4.3 GWe; 1.2 GWt
Combined heat and power plants [quantity] 4 4 4
Combined heat and power plants [installed capacity] 0.35 GWe; 1.2 GWt 0.35 GWe; 1.2 GWt 0.35 GWe; 1.2 GWt
Proprietary district heating networks – TAURON Ciepło [length] 888 km 857 km 844 km
Heat supply 11.6 PJ 12.0 PJ 12.4 PJ
Hydroelectric power plants [quantity] 34 34 34
Hydroelectric power plants [installed capacity] 133 MW 133 MW 133 MW
Wind power plants [quantity] 9 9 4
Wind power plants [installed capacity] 381 MW 381 MW 201 MW
Electricity distribution lines [length] 241,600 km 237,000 km 235,000 km
Transformers [distribution] 60,900 58,900 58,800
MV/LV stations 59,100 60,900 59,800
HV/MV stations 493 491 490
Capital expenditures [PLN billion] 4,039 4,128 3,838 
Depreciation [PLN billion] 1,954 1,992 1,839

* As of 31.12.2020

TAURON Group’s management of the production capital is performed, first and foremost, through efficient operations, as well as growth and modernization investments, among others:

  • connecting new consumers (and producers) to the distribution grid, expanding and upgrading the grid in order to improve the quality and reliability of the power supply for electricity consumers;
  • new capacity in renewable technologies and improving the productivity of the existing assets;
  • new modern generation capacity, key for energy security;
  • adapting the generating units to the operational conditions in force beyond 2021, resulting from the introduction of the BAT conclusions
  • expanding and upgrading the district heating network;
  • investments aimed at improving the efficiency of coal mining.
301-1, EU2

Results achieved by TAURON Capital Group in 2018-2020 as part of TAURON Group’s management of production capital

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Results achieved 2020
Commercial coal production by segment groups: coal dust, medium size lump coal, large size lump coal, eco-pea coal

4.54 million Mg

 3.78 million Mg 5.01 million Mg
Net electricity production 11.4 TWh 12.7 TWh 14.9 TWh
including electricity production from RES 2.0 TWh 1.4 TWh 0.97 TWh
Heat distribution 8.44 PJ 8.51 PJ 8.78 PJ
Heat generated 11.63 PJ 10.85 PJ 11.29 PJ
Electricity distribution 50.26 TWh 51.73 TWh 51.97 TWh