Annual report 2017

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

DICTIONARY

BAT/BREF

Best Available Techniques reference documents

Balancing market

technical platform for balancing electricity supply and demand on the market. The differences between the planned (announced supply schedules) and the actually delivered/off-taken volumes of electricity are settled here. The purpose of the balancing market is to balance transactions concluded between individual market participants and actual electricity demand. The participants of the balancing market can be the generators, customers for electricity understood as entities connected to a network located in the balancing market area (including off-takers and network customers), trading companies, electricity exchanges and the TSO as the balancing company.

Base, baseload

standard product on the electricity market: a constant hourly power supply per day in a given period, for example week, month, quarter or year

Best practices

The document "Best Practices for WSE-Listed Companies 2016," adopted by the WSE Council on October 13, 2015, and in effect from January 1, 2016

Biomass

Solid or liquid substances of plant or animal origin, subject to biodegradation, obtained from agricultural or forestry products, waste and remains or industries processing their products as well as certain other biodegradable waste, in particular agricultural raw materials

CCGT

Combined Cycle Gas Turbine, gas-and-steam unit technology with a gas turbine

CES

Customer Effort Score, an indicator used for measuring customer satisfaction. Measures the effort made by the customer to communicate with the company

CSI

Client Satisfaction Index, an indicator used to measure customer satisfaction. Indicates the level of customer satisfaction with a service or product

CVC fund

Corporate Venture Capital; in the CVC model, portfolio companies, aside from financial support, receive the opportunity to verify their ideas in a corporate setting

Circular economy

system that minimises the consumption of resources and the level of waste as well as emissions and energy losses by creating a closed loop of processes in which waste from one process is used as resources in other processes so as to maximally reduce the quantity of production waste

Co-firing

generation of electricity or heat based on the process of common, simultaneous combustion of biomass or biogas with other fuels, in a single device; some of the energy produced this way may be considered as energy produced from renewable sources

Cogeneration

simultaneous generation of heat and electricity or mechanical energy in the course of a single technological process

DSO

distribution system operator; a power company engaging in the distribution of gaseous fuels or electricity, responsible for traffic in the gas or electricity distribution systems, current and long-term security of operation of the system, the operation, maintenance, repairs and indispensable expansion of the distribution network, including connections to other gas or power systems

Diffuse source energy

generation of electricity, heat or cold, solid, liquid and gas fuels by smaller units or production facilities for local use

Distribution

transport of energy through distribution grid of high (110 kV), medium (15kV) and low (400V) voltage in order to supply it to customers

EBIT

operating profit (loss)

EBITDA

EBIT + depreciation, amortisation, disposal and impairment losses (PPE, IA, goodwill) that are recognised in profit or loss

EC

CHP plant

EU ETS

European Union Greenhouse Gas Emission Trading Scheme; its operating rules are set out in the ETS Directive, amended by the Directive 2009/29/EC of the European Parliament and of the Council of April 23, 2009 (OJ EU L. of 5.6.2009, No. 140, p. 63—87).. 140, p. 63—87)

EUA

European Union Allowances; disposable rights to CO2 emissions; one EUA entitles to emissions of one tonne of CO2

EW

hydro-power assets

Electromobility

overall set of issues concerning the use of electric vehicles

Energy cluster

civil-law arrangement that may include natural persons, legal entities, scientific units, research institutes or local government units, concerning the generation, distribution or trade in energy and energy demand balancing, with this energy being from renewable sources or other sources or fuels, within a distribution grid with nominal voltage below 110 kV, within the operational area of the given cluster, not exceeding the area of one district (powiat) in the meaning of the act on district authorities) or 5 municipalities (gmina) in the meaning of the act on municipal authorities; an energy cluster is represented by a coordinator, which is a cooperative, association, foundation appointed for this purpose or any member of the energy cluster indicated in the civil-law arrangement

FW

Wind farm

GJ

Gigajoule, a unit of work/heat in the SI system, 1 GJ = 1000/3.6 kWh = approximately 278 kWh

GW

gigawatt, a unit of capacity in the SI system, 1 GW = 10^9 W

GWe

one gigawatt of electric capacity

GWt

one gigawatt of heat capacity

Green certificate

document confirming generation of electricity from renewable sources, issued by the President of the Energy Regulatory Office (URE)

Green energy

popular name for energy generated from renewable sources

HCM

Human Capital Management

High voltage (HV) line

power line with nominal voltage of 110 kV

IED

Directive 2010/75/EU on industrial emissions

IGCC

Integrated Gasification Combined Cycle; gas-and-steam unit technology with integrated gasification of fuel

IRZ

Intervention Cold Reserve service, consisting of maintaining a unit in availability to produce energy. Energy is produced at the request of PSE S.A.

Installed capacity

formal value of active power recorded in the design documentation of a generating system as being the maximum achievable capacity of that system, confirmed by the acceptance protocols of that system (a historical value, it does not change over time)

KSE

National Power System, a set of equipment for the distribution, transmission and generation of electricity, forming a system to allow the supply of electricity in the territory of Poland

KSP

National Transmission System, a set of equipment for the transmission of electricity in the territory of Poland

KWB

lignite mine

kV

kilo volt, an SI unit of electric potential difference, current and electromotive force; 1kV= 10^3 V

kWh

kilowatt-hour, a unit of electric energy in the SI system defined as the volume of electricity used by the 1 kW equipment over one hour. 1 kWh = 3,600,000 J = 3.6 MJ

LTC

long-term contracts for the purchase of capacities and electricity executed between PSE S.A. and electricity producers in 1994-2001

LTC Act

Act of June 29, 2007, on rules for covering producers' costs related to early termination of long-term electricity and capacity sale contracts (Polish Journal of Laws no. 130, item 905 of 2007)

Low voltage (LV) line

power line with nominal voltage of up to 1 kV

MEW

small hydro power plants

MSR

market stabilisation reserve for CO2 emission allowances

MW

megawatt, a unit of capacity in the SI system, 1 MW = 10^6 W

MWe

one megawatt of electric capacity

MWt

one megawatt of heat capacity

Maximum capacity

highest capacity of a generation unit or producer maintained by the district heating producer on a continuous basis for at least 15 hours and by a hydro-power producer on a continuous basis for at least 5 hours, at nominal operation conditions, as confirmed by testing

Medium voltage (MV) line

power line with nominal voltage of between 1 kV and 110 kV

Micro-installation

renewable electricity installation with total installed electric capacity of up to 40 kW

NCBiR

National Centre for Research and Development

NOx

nitrogen oxides

NPS

Net Promoter Score, an indicator used for measuring customer satisfaction. It shows clients' willingness to recommend the company to their friends

Nm3

normal cubic meter; a unit of volume from outside the SI system signifying the quantity of dry gas in 1 m3 of space at a pressure of 1013 hPa and a temperature of 0°C.

ORM

operational capacity reserve; generation capacities of Active Scheduling Generation Units (JGWa) being in operation or at stand-by, constituting excess capacity available to PSE S.A. over demand for electricity that is covered by Energy Sale Agreements and on the Balancing Market under voluntary generation

Offshore farm

wind farm on the sea

PJ

Petajoule, a unit of work/heat in the SI system, 1 PJ = approx. 278 GWh

PSCMI1

Polish Energy Coal Market Index 1 - average level of prices of coal dust sold to industrial-scale power plants in Poland

Peak, peakload

standard product on the electricity market; a constant power supply from Monday to Friday, each hour between 7:00 a.m. and 10:00 p.m. (15-hour standard for the Polish market) or between 8:00 a.m. and 8:00 p.m. (12-hour standard for the German market) in a given period, for example week, month, quarter or year

Photovoltaics

the processing of sunlight into electricity

Property rights

negotiable exchange-traded rights under green and co-generation certificates

Prosumer

end customer who purchases electricity under a comprehensive agreement and generates electricity only from renewable sources at a micro-installations for own purposes, unrelated to economic activities.

Pumped storage plant

special type of hydro-power plant. In addition to river flow and a difference in water table levels it requires two reservoirs connected by a channel or pipeline. The power station is situated next to the lower lake or at the dam of the upper lake. The pumped storage facilities provide ancillary control services for the national power system

RAB

Regulatory Asset Base; the value of assets used in the distribution of electricity that is used as the basis for determining the level of distribution tariffs and remuneration for the distribution system operator

RES

renewable energy source; a source of generation using wind power, solar radiation, geothermal energy, waves, sea currents and tides, flow of rivers and energy obtained from biomass, landfill biogas as well as biogas generated in sewage collection or treatment processes or the disintegration of stored plant or animal remains

RUS

regulatory system services; services provided by entities for the transmission system operator, essential for the correct operation of the national power system, ensuring that specific reliability and quality parameters are maintained

Red certificate

document confirming generation of electricity in high-efficiency cogeneration, issued by the President of the Energy Regulatory Office (URE), for energy generated in cogeneration with heat

Regulator

President of the Energy Regulatory Office (URE), fulfilling the tasks assigned to him in the Energy Law. The regulator is responsible for, among others, issuing licenses to energy companies, approving energy tariffs, appointing Transmission System Operators and Distribution System Operators.

SAIDI

System Average Interruption Duration Index; an indicator showing the average system interruption duration (long, very long or catastrophic), expressed in minutes per customer per year, constituting the product of multiplying its duration and the number of customers exposed to it during the year, divided by the total number of customers. SAIDI does not include interruptions under 3 minutes and is set separately for planned and unplanned interruptions. It applies to interruptions on LV, MV and HV lines, although SAIDI in the quality tariff does not include LV interruptions.

SAIFI

System Average Interruption Frequency Index; measures the average frequency (number) of interruptions, expressed as the number of customers exposed to the effects of all interruptions in a given year divided by the total number of customers. SAIFI does not include interruptions under 3 minutes and is set separately for planned and unplanned interruptions. It applies to interruptions on LV, MV and HV lines, although SAIFI in the quality tariff does not include LV interruptions.

SO2

sulphur dioxide

Smart grids

energy systems integrating the activities of all participants of generation, transmission, distribution and consumption processes in order to supply energy in a reliable, safe and economic manner, taking into account environmental protection requirements

Smog

toxic and unnatural atmospheric event created as a result of air mixing with smoke and exhaust fumes. Smog is derived from two English words: smoke and fog. Smog appears over cities and industrial areas. The main reason for smog in many Polish cities is small-scale emissions, i.e. pollution that is generated in household furnaces, local boiler rooms and car use

Start-up

early-stage company established in order to build new products or services and characterised by a high level of uncertainty. The most common features of start-ups are: short operational history (up to 10 years), innovativeness, scalability, higher risk than in the case of traditional businesses but also potential higher returns on investment

TGE

Towarowa Giełda Energii S.A. (Polish Power Exchange), a commodity exchange on which trading can take place in electricity, liquid or gas fuels, extraction gas, emission allowances and property rights whose price depends directly or indirectly on electric energy, liquid or gas fuels and emission allowances, admitted to commodity exchange trading

TPA

Third Party Access, the owner or operator of the network infrastructure to third parties in order to supply goods/services to third party customers

TSO

transmission system operator; a power company engaging in the transmission of gaseous fuels or electric energy, responsible for traffic in a gas or power transmission system, current and long-term security of operation of that system, the operation, maintenance, repair and indispensable expansion of the transmission system, including connections with other gas or power systems. PSE S.A. was selected as TSO in Poland for the period from July 2, 2014, to December 31, 2030, as regards the transmission of electricity.

TWh

terawatt hour, a multiple unit for measuring of electricity unit in the system SI. 1 TWh is 10^9 kWh

Tariff

list of prices and rates and terms of application of the same, devised by an energy enterprise and introduced as binding on the customers specified therein in the manner defined by an act of parliament

Tariff group

group of customers off-taking electricity or heat or using services related to electricity or heat supply to whom a single set of prices or charges and terms is applied

Transmission

transport of electricity over a high voltage (220, 400, 750 kV) transmission network from producers to distributors

URE

Urząd Regulacji Energetyki (Energy Regulatory Office)

Ultra-high-voltage line (UHV)

power line with 220 kV voltage or higher

V (volt)

electrical potential unit, electric voltage and electromotive force in the International System of Units (SI), 1 V= 1J/1C = (1 kg x m^2) / (A x s^3)

W (watt)

unit of power in the International Systems of Units (SI), 1 W = 1J/1s = 1 kg x m^2 x s^-3

Yellow certificate

document confirming generation of electricity in high-efficiency cogeneration, issued by the President of the Energy Regulatory Office (URE), for energy generated in cogeneration with gas

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