Annual report 2017

We want to shape a responsible energy industry of tomorrow in our country.

Strategy in action

Key indicators Implementation 2016-2017 Progress and target How we intend to achieve the target by 2020 and in later years
Share of the electricity generation market
  • Continuation of investment at Elektrownia Opole [+]
  • Continuation of investment at Elektrownia Turów [+]
  • Launch of preparatory phase for construction of new gas-fired unit at Elektrownia Dolna Odra
  • Modernisation of units 1-3 in Turów [+]
  • Acquisition of EDF's assets, directly contributing to growth in PGE's market share [+]
  • Optimal adaptation of power plants and CHP plants to new industrial emission standards BAT [+]
  • Optimisation of generation portfolio in terms of participating in the capacity market
  • Construction of 1 000 MWe of new cogeneration capacities
  • Potential development of new gas-fired generation capacities
  • Use of strategic options for long-term development of capacities
    - construction of offshore wind farms [+]
    - construction of the first Polish nuclear power plant [+]
    - development of modern coal-based energy generation [+]
Share of the renewables market
  • Preparations for the first offshore projects in terms of the future auction, including environmental surveys, wind surveys
  • Development in the renewables segment depends on the shape of regulations and support system
  • The launch of a 1,045 MWe offshore wind farm half-way through the next decade, with potential expansion by 1,500 MWe by the end of the next decade [+]
  • Increase of low-emission fuel's share in district heating segment to 50%.
  • Increase of our exposure to the diffuse source segment
Share of the heat generation market
  • Closing of transaction to acquire EDF Polska’s assets: securing the position of largest supplier of district heating [+]
  • Adoption of PGE Group’s District Heating Strategy (District Heating Strategy)
  • Construction of Thermal Processing Installation with Energy Recovery at CHP plant Rzeszów [+]
  • Establishment of specialised business line integrating activities in the district heating area
  • Construction of 1 000 MWe of new cogeneration capacities
  • Increase of local market share to two-thirds for district heating networks managed by PGE Energia Ciepła S.A.
  • Increase of the Group's potential based on mergers and acquisitions in district heating
  • Addition of heating capacities at Elektrownia Rybnik

Customer satisfaction score (total for CSI, CES and NPS)

  • Continuous monitoring of customer satisfaction indicators and reliability assessments
  • Adaptation of distribution network to new sources – 8 251 micro-installations connected in 2017 alone
  • Expanded product offering for retail sales. Electricity with the help of professionals, offering with medical assistance, offering with insurance, offering with energy-efficient LED bulbs, offering for prosumers
  • Launch of new sales and customer service channels (mobile electronic customer service office, chatbot)
  • Consistent enhancement of relations with clients
  • Retention of low client migration rate in mass segment
  • Introduction of new sales channel based on e-Commerce model
  • Development of product offering and communication channels using digital platforms
SAIDI (minutes/customer)
  • Systematic improvement in quality indicators in recent years was distorted by sudden weather events
  • Launch of Telephone Reporting Centre, which is active throughout PGE Dystrybucja’s entire area, handling the emergency line 991
  • Launch of innovative system for detecting and isolating short-circuit incidents on overhead MV lines
  • Implementation of innovative metering system at Białystok branch and Łódź-Miasto branch
  • Further improvement in supply reliability and reduction in SAIDI and SAIFI by 56% between 2015 and 2020
  • Development of integrated and automated system for managing LV distribution network infrastructure cooperating with diffuse energy sources and accumulators installed at prosumer installations.
  • Construction of system for automatic reconfiguration of LV grid to improve the quality of distribution services in normal and emergency work mode
  • Development of autonomous mechanisms for reducing the effects of LV line failures
  • Increase in cable rates for the network
SAIFI (quantity/customer)

New customer connection time


  • Construction of harmonised connection system
  • Connection process simplified and shortened to 7 months
  • Optimisation of process of connecting to the distribution network by streamlining procedures and organisation of work, enhancing online communication and increasing the functionalities of IT systems

Controllable costs

  • Standardisation and optimisation of support functions at PGE Group level
  • Commencement of implementation of integrated management system for production assets
  • Update of the Human Capital Management Strategy [+]
  • Implementation of grid loss reduction project
  • Effectiveness programme across all of PGE Group's business lines
  • Reduction of controllable costs by PLN 500 million compared to 2016 will make it possible to reduce costs in 2016-2020 by about PLN 3.5 billion in relation to the current efficiency scenario
  • In the reduction in overhaul expenses by 10% (by 2023, compared to 2017)

Net debt / EBITDA

  • PGE Group's initiatives aimed at reducing controllable costs and the construction and maintenance of generation capacities
  • Update of trading strategy [+]
  • Additional EBITDA result from implementation of District Heating Strategy estimated at approx. PLN 1 billion in 2030
  • Increase in asset management efficiency
  • Increase in efficiency of combustion by-product management
  • Retention of competitiveness of lignite mining

Generation efficiency

  • Construction of new efficient generation units at Opole and Turów
  • Modernisation of units 1-3 at Elektrownia Turów, including improvements in generation efficiency [+]
  • New generation assets put into service
  • Maintenance of electricity generation efficiency of our existing assets


Percentage of successful implementations
  • Involvement in equity structures that support the development of new technologies and small businesses [+]
  • Development of electromobility [+]
  • Cooperation with universities (technical universities: Silesia University of Technology, Kielce University of Technology, Lublin University of Technology, Wrocław University of Technology, Warsaw University of Technology, Rzeszów University of Technology, Łódź University of Technology, University of Łódź, AGH University of Science and Technology)
  • Commencement of project to design and implement new technology for lithium battery recycling [+]
  • Execution of agreement on establishment of two energy clusters
  • PLN 400 million for research, development and innovations by 2020
  • Development of energy-efficiency activities
  • Development and commercialisation of new technologies intended to allow PGE Group to introduce a modern and comprehensive offering for clients, covering photovoltaics, electromobility, smart home solutions (the Smart Energy project), natural gas and demand management


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