German utility RWE is planning to ‘boost Poland’s economy and electricity sector’ through the construction of a new hard coal fired power plant featuring state-of-the-art technology.
But the utility has warned that investments in such modern, efficient facilities will be put at risk if sudden changes to the European Union’s Emission Trading Scheme (ETS) are made.
RWE is to partner with Kompania Weglowa, Poland’s largest coal company, to construct the 800 MW facility in Wola, Lower Silesia. The new plant represents an investment of EUR1.5 billion and will be very similar in design to other power plants being constructed by RWE in Germany and the Netherlands.
The supercritical technology deployed in these plants allows them to achieve efficiency rates of 46 per cent and therefore emit reduced quantities of carbon dioxide compared to older facilities. RWE therefore believes that they should be allocated emissions allowances free of charge under the EU’s ETS.
“The new power plant will have an efficiency rate of 46 per cent. This will make it the most modern power plant in Poland and one of the most advanced power plants worldwide,” said Dr. Johannes Lambertz, CEO of RWE Power. “The new unit will emit significantly less CO2 than older systems in Poland, where the current efficiency rate is only 33 to 35 per cent. This means up to 30 per cent less hard coal per kWh will be required and annual CO2 emissions will be reduced by 1.3 million tons.”
RWE will hold a 75 per cent share in the joint venture and will be responsible for development of the project. Kompania Weglowa will hold the remaining share and will provide the site, infrastructure during construction as well as the fuel for the new plant.
“The new investment is hugely significant to the region as it will boost its economic revival. Thousands of jobs will be created or secured during the construction phase and, when the plant is up and running, hundreds more long-term positions will be available at the plant and … in the vicinity,” said Grzegorz Pawlaszek, President of Kompania Weglowa. “The partnership with RWE gives us the security of a long-term contract for delivery of 2.5 million tons of coal per annum.”
RWE’s investment is one of the largest ever projects undertaken in Poland’s energy sector and brings the company’s total investments in the country to EUR2.5 billion. Energy demand in Poland is growing by 3-5 per cent per year.
The plant will be located on the premises of the former Piast Ruch II coal mine owned by Kompania Weglowa and is scheduled to come on-stream in 2015.
Most emission allowances are currently issued free of charge in Europe’s ETS but the European Commission has announced plans to introduce auctioning of allowances in 2013.