TAURON Polska Energia has adapted ‘TAURON Group Corporate Strategy for 2011-2015 with a projection until 2020’, which is a revision of the strategy of 2008. The document redefines the strategic objectives, which enable the growth of the Group’s value. The revised strategy focuses on: growth of the most attractive areas of activity, operating and investment efficiency at the best practice level, market and regulatory risk exposure management, and the development of an efficient organization.
- We revised the activities conducted in the framework of the implementation of the corporate strategy of 2008. We assessed their performance and verified the assumptions made in the economic conditions of that time. We focused on the analysis of the new, different than two years ago, market conditions and trends in the electric power industry, and the new legal conditions, such as the energy and climate package, the amendment to the Energy Act, Energy Policy of Poland until 2030. As a result, the revision of the corporate strategy was created, which addressed the most significant market challenges and explicitly defines the strategic priorities, says Dariusz Lubera, President of the Management Board of TAURON Polska Energia.
The most important strategic objective remains constant growth of value ensuring return on the invested capital for the shareholders. Focus on growth in the areas of activity in which there is the greatest potential of achieving greatest rates of return on investment and diversification of the generation portfolio have become the key focus of the strategy. Additionally, we have maintained the objective of further improvement of efficiency and development of an efficient organization. Market and regulatory risk management is a new strategic objective for the Group, says Joanna Schmid, Vice-President of the Management Board, Chief Strategy and Business Development Officer of TAURON Polska Energia.
Growth in the most attractive areas of activity will be carried out through the construction of new generation capacities and acquisition opportunities in the core activity.
As regards the generation portfolio, it is assumed that by 2020 new generation capacities of 2400 MW will be commissioned, including in particular: 1010 MW in technology based on hard coal (910 MW in Jaworzno III power plant, cogeneration capacity: 50 MW in EC Tychy, 50 MW in EC Bielsko-Biała); 735 MW in technology based on gas fuel, including 335 MW in cogeneration (50% share in the steam and gas unit 00 MW in EC Stalowa Wola, constructed with a strategic partner - PGNiG and 135 MW in EC Katowice), and 50% share in 800 MW class unit in Blachownia power plant, constructed with a strategic partner – KGHM Polska Miedź); 240 MW in biomass (including: 50 MW unit in Jaworzno III power plant, 40 MW in EC Tychy, 50 MW in Stalowa Wola power plant). TAURON Group will invest in 2011-202 in total approx. PLN 44-45 billion.
As regards the verification of the generation asset portfolio and reduction of the risk connected with CO2 exposure, TAURON has increased its share of capacity in low-emission technologies, which means growth of the importance of the RES area. In 2020 the Group will have approx. 800 MW in wind and biogas power. TAURON will also take steps concerning the preparation of the construction of a nuclear power plant.
Development of the Heat Area is planned. Ultimately, the area is to integrate its distributors and generators under one economic undertaking. It is planned that until 2010 the process of the integration of PEC Katowice and PEC in Dąbrowa Grównicza will be completed, and overall completion of the integration of entities in the area is scheduled for 2013.
Operating and investment efficiency at the best practises level is to be achieved through the completion of the integration and gaining further benefits from synergy (integration of the Group companies), improvement of the cost efficiency through restructuring the operating activity and integration of the support function, as well as the implementation of the investment efficiency programme.
Market and regulatory risk management covers the diversification of the generation asset structure; active regulatory policy lowering the risk and creating good conditions for development, efficient security strategy and maintenance of low-cost sources of fuel.
The Group is diversifying its generation portfolio adequately selecting individual types of technology and develops an efficient security policy, including securing energy supply. The policy will facilitate the reduction of the result fluctuations in the Group through the management of the portfolio of assets and control of risk limits.
In 2010, 98% of the capacity installed in the Group was in coal technologies. In 2020 their share will fall to approx. 70%, including 15-20% from new units. The share of low-emission technology, i.e. gas, wind, water, biomass and biogas will be approx. 30%. Such portfolio diversification reflects the growth of output from 23.8 TWh in 2010 to 36.7 TWh in 2020, which is approx. 54% growth.
An efficient security strategy covers all the actions in the Group’s value chain. The new commercial objectives will concern: efficient use of the Group’s assets, active management of the market risk in the Group, and expansion of the activity in areas generating additional margin.
Improving the supply and customer service organization, developing competence in the RES area, and the implementation of the human resources management programme and management by objectives programme will facilitate the development of an efficient organization – the fourth main strategic objective of TAURON Group.
In the Supply Area, due to numerous modifications made in 2008-2010, objectives concerning the increase of margins will be mainly carried out. The tasks in the Customer Service Area are the improvement of the service quality, unification of processes and cost optimization.
Successful implementation of the strategy throughout the value chain will improve TAURON Group’s position amongst the region’s leading energy companies, ensuring return on the invested capital to the shareholders.
