PGE Polish Energy Group and ZE PAK have signed a preliminary agreement on the establishment of a joint special purpose vehicle (SPV) to implement a nuclear power plant construction project in the Konin region. Through PGE’s presence in the project, the company will safeguard the interest of the State Treasury.
PGE and ZE PAK will hold 50 per cent of the shares each in the newly established company, taking decisions by consensus.
“The Polish economy, in order to develop further, needs a strong and independent power industry. Renewable energy sources will play an important role in the next decade. However, a stable, zero-carbon source such as nuclear power will be key. To this end, we are consistently developing the government’s Polish Nuclear Power Programme, which is complemented by a project implemented by PGE, ZE PAK and KHNP. The establishment of a joint company by PGE and ZE PAK is another step in the implementation of this project. It will be a direct partner of the Korean KHNP in the construction of a nuclear power plant in the Konin region. Although this is a business project, it has the full support of the Polish government. I am convinced that its implementation will contribute to the strengthening of Poland’s energy security and independence, as well as strengthening our position on the international arena,” says Jacek Sasin, Deputy Prime Minister, Minister of State Assets.
“I am glad that the location of ZE PAK in Pątnów, after preliminary analyses, has been assessed as prospective for the siting of a nuclear power plant. We carried out the analyses in just 4 months together with our partners PGE and KHNP. I am very pleased that we have agreed, as part of the Preliminary Agreement, the key conditions for cooperation with PGE. This is a milestone for the construction of a nuclear power plant in Poland. I would like to thank everyone working so intensively on this project. The key is to provide Poles with cheap, clean and stable energy for the next several decades,” says Zygmunt Solorz, Chairman of the Supervisory Board of ZE PAK.
“Without wasting any time, we are working efficiently on the nuclear power plant project. In less than four months since signing the letter of intent, we have completed key tasks together with our business partners ZE PAK and KHNP. We have a preliminary plan for the construction of a nuclear power plant based on Korean APR1400 technology, which was supplemented with additional proposals and assumptions after analysis. Today, we signed an agreement on the establishment of a company that will secure Polish interests in the construction of a nuclear power plant together with the Koreans,” says Wojciech Dąbrowski, President of the Management Board of PGE Polish Energy Group.
“This is a great day for the Polish energy sector, for ZE PAK and the Eastern Wielkopolska region. Our agreement today marks the real start of the nuclear power plant construction project in Pątnów. We will now immediately submit our application to the Office of Competition and Consumer Protection (UOKiK) in the hope of quickly establishing the company. We want to start environmental and location studies and location studies and a feasibility study as soon as possible. We are pleased that this project is being implemented so efficiently and at such a dynamic pace,” says Piotr Woźny, President of the Management Board of ZE PAK.
The joint venture between PGE and ZE PAK will represent the Polish side at all stages of the project, including the execution of the location and environmental studies, the acquisition of financing and the preparation of a detailed investment schedule together with the Korean side, as well as the subsequent stages of obtaining permits and administrative decisions.
The signed agreement stipulates that a Board Member designated by PGE will serve as President of the Board. On the other hand, one of the members of the Supervisory Board indicated by ZE PAK will act as Chairman of the Supervisory Board. The establishment of the company by PGE and ZE PAK is conditional on obtaining the approval of the Office of Competition and Consumer Protection.
The central location of Pątnów, next to one of the key national energy hubs, makes it possible to derive electricity from Pątnów in all directions while minimizing energy transmission losses and optimising the use of the power grid.
The parties plan that the SPV will carry out the next stage of cooperation which will be: feasibility studies, site investigations and environmental impact assessments for the planned construction of a nuclear power plant. On the basis of the preliminary analyses carried out so far, it has been assessed that it is prospective to site at least 2 APR1400 reactors with a total capacity of 2800 MW. Two reactors could supply Polish homes and businesses with about 22 TWh of energy, or about 12 per cent of today’s energy consumption in Poland. The commissioning of the first unit of the power plant is possible as early as 2035.
On 31 October 2022, the presidents of three companies, i.e., Polish energy groups: PGE and ZE PAK, as well as the Korean KHNP, signed a letter of intent, the main objective of which was to develop a plan to build a nuclear power plant in Pątnów, Poland, based on APR1400 technology. By the end of 2022, the parties were preparing a preliminary plan for the development of a nuclear power plant in the Konin region, followed by further complementary analyses.
As part of the preparation of the plan, preliminary analyses of geotechnical, seismic and environmental conditions were carried out, an estimated budget was developed for the preparatory works, the construction phase together with considered scenarios for financing and timetable for the project, and with the definition of key milestones affecting the potential implementation of the project.
