Poland’s energy minister has confirmed that the state wants to enter Orlen Synthos Green Energy, the company planning a fleet of small nuclear reactors with Michał Sołowow’s Synthos, and that the Polish Development Fund (PFR) is being prepared to take a 33 percent stake. Miłosz Motyka presented the move as a way to prevent a shareholder deadlock and speed up the first SMR investment in Włocławek.
The announcement came after a week in which record heat forced the Polish power system into emergency procedures. The transmission system operator PSE twice used the capacity market’s emergency call mechanism, including the longest such activation on record. Electricity prices in the evening jumped above 2200 PLN/MWh, even though solar panels generated more than half of Poland’s power during the day and wholesale prices fell below 1.5 PLN/MWh.
The heat and prolonged hydrological drought have left the Vistula extremely low. Consequently, coal units in Kozienice and Połaniec had to reduce their output. Bełchatów’s largest block, with a capacity of 858 MW, is out of service because of planned maintenance. Weak onshore wind and widespread air-conditioning use complicated the balancing of the grid.
– The Polish power system is safe. There is no threat to its operation. There is an appropriate reserve. On Wednesday, when the biggest heat was over Poland, we were an exporter of energy, even at higher demand – Motyka told WNP.PL.
Heat and drought test regional grids
Poland was not the only country facing such problems. In Central and Eastern Europe, the low water level and high temperature of the Danube caused cooling difficulties at Hungary’s Paks nuclear plant and Romania’s Cernavoda nuclear plant. Serbia had trouble at a hydroelectric plant, while Hungarian industry had to reduce consumption because the country imports most of its energy.
– They did not expect such a scenario in such a short time, as far as the water level in the Danube is concerned. The Hungarians are in a much more difficult situation than Poland, they mainly import energy. Their industry has to reduce its consumption. Serbia, meanwhile, has major problems with cooling coal units. The whole region dependent on the Danube has problems – the minister said.
– It shows how to build an energy system that must be diversified so as not to depend on one factor. New sources need to be built to improve the flexibility of the system – and we will also encourage our neighbours to do so – Motyka added.
The minister also defended the capacity market, which has faced criticism in Poland and Brussels. He said the recent emergency activations proved it works and warned that abolishing it would put security at risk.
– There was no problem with the response of participants. At such moments we can confirm that this mechanism works effectively. It was built with full responsibility and abandoning it today – whether at European or national level – would be a threat to our security – Motyka said.
PFR joins the SMR project
OSGE is a joint venture of state-controlled Orlen and Synthos, owned by Michał Sołowow. The company plans to build a fleet of BWRX-300 reactors designed by GE Vernova Hitachi, each with a capacity of 300 MW. So far, the shareholders have not reached a final agreement on how to divide responsibilities for the project.
– These are talks about structural issues of this company. We are looking at them with great attention. Talks are ongoing about PFR’s participation. A situation where one company has 50 percent of shares and a deadlock cannot be allowed – Motyka declared. He indicated that PFR’s share should amount to 33 percent.
Asked how the private side reacts, the minister replied that 'they are not responding negatively to us’. The entry of PFR into OSGE is expected this year. The state wants to use this move to accelerate the first installation, planned in Włocławek.
Looking further ahead, Motyka said coal units are still needed to stabilise the system until a large nuclear plant is built. That plant is expected to deliver 3.6 GW at the end of the next decade, if the schedule is kept. He also pointed to the recent decision to extend the operation of units in Rybnik.
– If the plans of Polish energy groups are implemented on time, there will be no generation gap. Energy storage, which is still becoming cheaper and more accessible, will also be important – Motyka said.
The ministry is negotiating with the European Commission over the shape of the capacity market after 2030. Together with PSE, it is proposing a 'power triple pack’, a set of three coordinated market instruments designed to guarantee long-term capacity and flexibility. The minister declined to set a deadline for the talks.
– We assess the talks highly, but we do not want to set an exact timeline for concluding them. A year of negotiations seems optimal. I think the European Commission, especially in light of events like those taking place today in Central and Eastern Europe, will take our perspective much more into account – he commented.
By 2030, the minister expects gas units and storage facilities to support the grid. He also recalled that the 2030s are the planned period for small modular reactors to appear. Coal units, including those in Rybnik whose operation was recently extended, are still part of the system that must stabilise the grid until the large nuclear plant starts working.
Source: WNP.PL, Photo: PGE GiEK/PAP/Adam Warżawa
