The Polish government is preparing to enter Orlen Synthos Green Energy, the company behind the planned domestic SMR fleet, and Energy Minister Miłosz Motyka told WNP that the state-run Polish Development Fund (PFR) should take a 33 percent stake. The goal is to unlock the first reactor project in Włocławek and stop either shareholder from imposing a deadlock.
OSGE is a joint venture of state-controlled Orlen and Michał Solowow’s Synthos. The company has spent several years working on BWRX-300 reactors, a GE Vernova Hitachi design with a capacity of 300 MW each. Despite the progress, the ownership and responsibility framework of the company has not yet been finally settled.
– These are talks about the structural issues of the company. We are looking at them with great attention. A situation in which one company has 50 percent of shares and a deadlock is unacceptable – Motyka said.
Heat wave tests the power system
The week preceding the interview brought record heat to Poland and other European countries. Polish transmission operator PSE had to call on the capacity market mechanism twice, with one activation the longest in history. Without this procedure, Poland’s energy system and economy would have been at risk, Motyka said.
Extreme temperatures and prolonged hydrological drought had already forced two coal plants, Kozienice and Połaniec, to reduce output because of low Vistula water levels. The largest coal unit in Bełchatów, with 858 MW of capacity, was also out of the system. Solar farms were generating more than half of Poland’s daytime electricity, pushing prices below 1.5 zł/MWh, but after sunset the situation reversed as air conditioners, conventional generation and imports pushed evening prices above 2200 zł/MWh.
– There is no threat to the operation of the power system. There is an adequate reserve. On Wednesday, when the greatest heat covered Poland, we were an exporter of energy, even with higher demand – Motyka said.
The minister’s counterparts in Central-Eastern Europe had a harder time. Low Danube water levels and high temperatures led to cooling problems at Hungary’s Paks nuclear plant, Romania’s Cernavoda nuclear plant and Serbian hydroelectric units. Motyka said his ministry is in constant touch with partners in the region.
– They did not expect such a scenario in such a short time when it comes to the state of water in the Danube. The Hungarians are in a much more difficult situation than Poland – they import energy. Their industry has to reduce consumption. Serbia has major problems with cooling its coal units. The whole region dependent on the Danube has problems – Motyka said.
In his view, the system must be diversified and new sources must be built to improve its flexibility. He also defended the capacity market, which some politicians and regulators have questioned in recent years.
– There was no problem with the response of participants. We can confirm that this mechanism works effectively. It was built with full responsibility, and abandoning it today would be a threat to our security – he said.
Coal stays in the mix before nuclear arrives
Motyka said coal units remain necessary to stabilise the system until the first large nuclear plant is built. The government therefore decided to extend the operation of coal units in Rybnik. Poland’s first big nuclear station will only add 3.6 GW, and only at the end of the next decade if construction stays on schedule.
The ministry is counting on timely completion of gas-fired projects and cheaper energy storage. The existing capacity market finances most coal units only until 2030, while the frequency of emergency calls is increasing and electricity demand is expected to grow.
– If the plans of Polish energy groups are implemented on time, there will be no generation gap. Energy storage will also be important, as it is getting cheaper and more accessible – Motyka said.
Warsaw is negotiating with the European Commission on a new post-2030 capacity market. Together with PSE, the ministry is proposing the „capacity triad,” a set of three coordinated market instruments designed to ensure long-term adequacy and flexibility.
– We assess the talks highly, but we do not want to give an exact timetable yet. A year of negotiations seems optimal. I think the European Commission, especially in view of what is happening today in Central-Eastern Europe, will take our perspective much more into account – Motyka said.
Włocławek and the SMR race
The 2030s are also intended to bring the first Polish SMRs. Motyka confirmed that the government wants PFR in OSGE to speed up work on the Włocławek project. In his assessment, PFR should hold 33 percent of the company, which would prevent a 50-50 split from blocking decisions.
– They are not responding negatively to us – Motyka said when asked how the private side, linked to Michał Solowow, views the plan.
The entry of PFR into OSGE is expected by the end of this year. The energy calendar also includes the Energy Days conference, which starts on 30 September and is expected to be a platform for discussing the most important challenges for the sector.
Source: WNP.PL, Photo: PGE GiEK/PAP/Adam Warżawa
