Orlen Synthos Green Energy (OSGE) has taken another concrete step toward building a fleet of small modular reactors in Poland. The company submitted an application to the Ministry of Energy for contract-for-difference support covering 14 BWRX-300 units, with the first reactor expected to be operational in Wloclawek by 2032.
The application covers 14 small modular reactors using GE-Hitachi BWRX-300 technology across three locations: Wloclawek, Stawy Monowskie near Oswiecim, and Stalowa Wola. Based on the submitted document, the government can prepare documentation needed for state aid notification to the European Commission, OSGE said in a statement.
Deputy Energy Minister Wojciech Wrochna said in May that OSGE had presented its proposal to the ministry for covering modular nuclear reactors with contracts for difference. The mechanism is expected to be included in the SMR roadmap that the Ministry of Energy plans to publish soon.
Contracts for difference as a financial anchor
A contract for difference is a support model where two parties settle the gap between a fixed base price and the current market price of an asset – in this case, electricity. When market electricity prices fall below the reference price, the producer receives the positive difference. When prices exceed the reference, the difference goes to the supporting party.
– A contract for difference for 14 units will allow us to build a fleet of BWRX-300 reactors in Poland. Thanks to economies of scale, standardisation, modularisation and repeatability, we will reduce unit costs and create an electricity generation model that is attractive in price for both individual and industrial consumers. At the same time, accepting the contract for difference will be a significant step toward building a solid supply chain for SMRs in Poland – said OSGE CEO Rafal Kasprov, quoted in the statement.
During last year’s session of the parliamentary Energy Committee, Kasprov indicated that the expected contract-for-difference level for SMR projects could range from EUR 115 to EUR 135 per MWh. He noted that this level should decline as more units are built, reflecting the effect of scale.
Investment costs and regulatory progress
Kasprov also estimated that the capital expenditure for one BWRX-300 unit might be around EUR 2 billion, though the final cost would depend on numerous factors, including the number of reactors built in sequence.
OSGE has already obtained preliminary decisions for all units covered by the application. For the investments in Wloclawek and Stawy Monowskie, the company holds environmental decisions and has also filed for an environmental decision for the Stalowa Wola project. OSGE also has a grid connection permit from the Polish power grid operator PSE for the SMR in Stawy Monowskie.
– The launch of the first BWRX-300 unit, according to current assumptions, will take place in 2032 in Wloclawek. The capacity of these units and the locations proposed by OSGE fit perfectly into the Polish power system, minimising the costs of grid connection and power evacuation – the company noted.
Orlen Synthos Green Energy is a joint venture owned equally by oil refiner Orlen and chemical giant Synthos, controlled by billionaire Michal Solowow. OSGE plans a fleet of 26 GE-Hitachi BWRX-300 reactors across Poland. Orlen’s strategy envisions owning two BWRX-300 units by 2035. The first units are to be built near Orlen’s Anwil chemical plant in Wloclawek, with other locations near Synthos facilities in Oswiecim and in Stalowa Wola. According to Energy Ministry estimates, commercial operation of the Wloclawek plant should begin in the early 2030s.
Źródło: wnp.pl, Fot. PTWP/Aleksandra Helbin
