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PLN 4.4 billion for the expansion of distribution infrastructure for railways. The President of the Energy Regulatory Office approved the PKP Energetyka Development Plan for 2021-2025

25 May 2021. The President of the Energy Regulatory Office has approved the largest Development Plan in the history of PKP Energetyka. PLN 4.4 billion will be earmarked for investments in the infrastructure necessary to provide power to the catenary system, in line with the growing needs of the Polish railroad. Modern power supply equipment will be able to provide more power for faster and more frequent trains. The approved plan will be implemented in the next five years.

“Development Plan of PKP Energetyka S.A. for 2021-2025” is a document defining the company's investment intentions. It includes directions of development both in terms of connecting new customers, investments in the current infrastructure, and IT (digitalization) or OT (operational technologies) systems to be implemented. PKP Energetyka’s priority is the so-called Power System Modernization Programme (MUZa), which has been followed by the company continuously since 2011. Between 2011 and 2020, as part of MUZa, projects worth more than PLN 2 billion have been implemented. All projects were completed on schedule and on budget, even during such challenging times as the COVID-19 pandemic. By 2025, PKP Energetyka will have allocated almost PLN 3.65 billion for the implementation of the Programme and for connecting new customers. This is about 84% of the total funds provided in the Development Plan for infrastructure investment. Nearly PLN 420 million (ca. 9% of the funds) will be used to finance distribution network modernization projects, while ca. PLN 300 million (nearly 7% of the total pool) will be allocated to other investments.

The draft Development Plan had been agreed with the President of the Energy Regulatory Office (ERO), who in the course of the proceedings confirmed its compliance with legal regulations and with the assumptions of the Polish Energy Policy until 2040 (PEP 2040). Because of the company's area of activity, the plan was consulted with the boards of all provinces, each of which gave a positive opinion on the submitted document.

The highest expenditures under the Plan are projected for 2023 - over PLN 1 billion. On average, PKP Energetyka's annual investments will amount to approximately PLN 880 million. The highest number of projects will be implemented in the Mazowieckie, Łódzkie, Pomorskie and Wielkopolskie provinces, which is in line with the railway development plans and the needs of other customers. Expansion and modernization of rail transport supply system is an investment injection for many regions, which is particularly important during the reconstruction and strengthening process of the Polish economy following the crisis.

“Our mission is to support the development of the Polish railways. We set the bar high, because we know that rail transport is gaining importance in terms of comfort, safety and sustainability. We are fully prepared to make all approved investments - both organizationally and financially. We have extensive experience and a team of experts, which has completed more than 200 facilities throughout Poland in recent years. We are proud that we are able to intensify our commitment, maximizing the quality and safety of power supply, which are particularly important for the railway sector to which we contribute” - said Wojciech Orzech, CEO of PKP Energetyka.

The agreed Development Plan also has an important sustainability aspect. The implementation of the Plan will increase the possibility of connecting RES to the company's distribution network. The projects also include the construction of photovoltaic systems for PKP Energetyka's own needs.

Last modified: 7/19/2021