Authorities in Poland have approved the purchase of EDF’s Polish assets by power firm PGE, subject to certain conditions.
PGE will be allowed to take over the EDF plants provided that it commits to selling electricity generated by the Rybnik coal-fired power plant via the power exchange.
PGE signed a deal with France’s EDF in May 2017 to buy the assets for $1.23 billion. The deal comprises eight local combined heat and power plants as well as the 1800 MW Rybnik plant in the south of Poland.
Purchasing EDF’s assets will enable Poland-based PGE to boost its market share. Requiring it to sell energy from Rybnik on the open market will limit its influence in the market, the Polish competition authority, UOKiK, said.
“The boost of PGE’s market position will be reduced,” UOKiK said in a statement. “All the electricity which has been up to date generated by EDF Polska and sold to wholesale clients, will be directed to the exchange.”
PGE’s share of Poland’s electricity generating capacity will rise from 36 to 45 per cent when the deal is concluded later this year.