TAURON and PIR work together

On 20 March TAURON Polska Energia and Polish Investments for Development (PIR) signed agreement for financing the construction of 413 MW unit at Łagisza power plant in Będzin. It will be one of the biggest investments of the TAURON Group in Silesia and one of the biggest projects of its kind currently executed in Poland. The project is worth over PLN 1.5 billion with PIR’s participation at the maximum allowed level of PLN 750 million. The unit will be commissioned at the end of 2018.

- This is yet another major investment of a State Treasury’s company, which contributes to Poland’s economic growth. Over the past six years our economic growth reached almost 20% cumulatively. It looks very well, especially in comparison to the entire European Union, whose GDP shrunk over that time by 0.8%. Within six years capital expenditures on generation capacity development will reach PLN 30 billion. Thanks to that, state-of-the-art units with total capacity of 5 000 MW will be built and our generation fleet will be among the best in Europe. That includes the CCGT unit at Łagisza which is scheduled to be commissioned in four years – said Włodzimierz Karpiński, Minister of the State Treasury. – PIR is already involved in projects worth PLN 5 billion and is currently analyzing other projects, worth PLN 10 billion.

- The joint investment with TAURON proves that PIR has achieved full capacity to execute the tasks for which it was set up. The scale of investments, its importance for development of the region, improved efficiency and power security of Polish economy as well as positive impact on the environment are perfectly in line with our mission. At the same time, PIR’s participation in the project guarantees profitability of the entire investment. Next to the joint investment with Lotos at B-8 deposit and with Municipal Heating Company in Olsztyn, the Łagisza project is the third investment of PIR’s aimed to achieve a strategic objective, i.e. improve Poland’s energy security. Further PIR’s investments in this sector should be presented over the coming weeks – said Mariusz Grendowicz, President of the Management Board at PIR.

Construction of the 413 MW_e CCGT unit at Łagisza power plant is in line with TAURON Group’s strategy which stipulates diversification of energy sources. Thanks to this investment the energy security of integrated heating system in Silesia will improve. Even today the Łagisza power plant is one of the main heat suppliers for Będzin and Dąbrowa Górnicza and in the future, after 2017, will also be for Sosnowiec. The new unit will provide system heat for 700 thousand inhabitants of the urban agglomeration.

- TAURON diversifies its generation portfolio. We obtain financing for our projects from several sources, including our own funds, loans and bonds. We hope that PIR will be our major partner as well – said Dariusz Lubera, President of the Management Board at TAURON Polska Energia. – The strategy that stipulates restoration of electricity and heat generation capacity at Łagisza is justified by, among others, existing and prospective large (approx. 250 MW_t) heat market supplied by TAURON Ciepło (Heat), our subsidiary. Highly efficient combined heat and power plant will replace existing 120 MW coal-based units currently in operation at Łagisza which are scheduled to be online until 2017. The unit will meet all environmental requirements, thus reducing the level of carbon dioxide, sulphur oxides, dust and nitrogen oxides emission to atmosphere.    

Location of the investment is good also due to highly qualified staff already working at Łagisza power plant and relevant infrastructure necessary for generation of electricity and heat (supply of water, fuel and other utilities, power connection capacity for all voltages: 110, 220, 400 kV).

Peak employment at the Łagisza unit construction will reach 500 workers.

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About the investment:

The investment includes construction of 413 MW_e power unit with full infrastructure and all necessary auxiliaries and connections. The new unit will have a steam turbine, a gas turbine and heat recovery steam generator. It will be a high-efficiency system unit (min. 58% net efficiency) generating electricity and heat. It will meet all the requirements defined in the Instruction for Transmission System Operation and Maintenance. Moreover, it will be equipped with a 250 MW_t heating unit that will be a source of heat for clients of the Łagisza power plant as well as a source of water and steam for the 460 MW_e coal-fired unit already in operation at the power plant.

The project is currently at preliminary stage of execution. Following technical and economic analyses a recommendation was made to choose the CCGT technology and the company announced and awarded a tender for supply of documentation necessary to obtain construction permit and for participation in organization of a tender for contractor of the 413 MW unit at Łagisza power plant. As a result, on 11 February 2014 the best offer was selected, submitted by consortium of Ramboll Polska (leader) and Biuro Studiów i Projektów Gazownictwa Gazprojekt.

Framework schedule:

Start of main contractor selection procedure – Q2 2014

Detailed examination of the Project by PIR – Q2/Q3 2014

Development of environmental report – Q3 2014

Signing conditional investment agreement between Tauron and PIR – Q4 2014

Construction permit – Q1 2015

Offers analysed – Q2 2015

Best offer selection – Q3 2015

Verification of conditions precedent by PIR – Q4 2015

Signing contract for unit construction – Q4 2015

Development of basic design of CCGT unit – Q1 2016

Start of construction and assembly works – Q3 2016

Assembly of CCGT element – Q4 2017

Start of pipeline commissioning – Q1 2018

First synchronization of the unit with Polish Power System – Q2 2018

Trial run, start-up operations – Q3 2018

Commissioning – Q3/Q4 2018

Environmental effect:

The new unit at Łagisza power plant will meet the requirements defined in Polish and European environmental regulations as well as requirements, norms and standards specified in Best Available Techniques – BAT.

The unit will meet the following environmental parameters:

• sulphur dioxide SO₂12 mg/Nm³ (at 15% O₂ in dry fumes, under normal conditions),
• dust 5 mg/Nm³ (at 15% O₂ in dry fumes, under normal conditions),

and within 60-100% load,

• nitrogen oxides NOx 50 mg/m3u (at 15% O₂ in dry fumes),
• CO100 mg/Nm³ (at 15% O₂ in dry fumes).

This will be in conformity with requirements for units to be commissioned starting 2016. The technologies applied will also enable adjustment to connect CO₂ capture system – the unit will be “CO₂ capture ready”.