Poland’s PGE to spend up to €18bn on nuclear plants

16 January 2009 – Poland’s largest energy producer Polska Grupa Energetyczna (PGE) aims to build two nuclear plants of 3000 MW each and estimates the cost at €15-18bn ($20-24bn), the company’s chief executive said.

Poland’s government has gaven PGE the manadate to build two nuclear plants to help the European Union’s largest ex-communist economy diversify its energy sources.

PGE CEO Tomasz Zadroga said the company aims to have the first block operational in 2020 and will seek a partner to build and operate the plants.

“The stake (we will want to sell) is up for negotiations, but we want to keep the controlling stake,” Zadroga told a news conference.

PGE will seek to gain external financing for about 80 percent of investments, he said.

About 95 percent of Poland’s electricity is from coal-fired plants, but in order to meet the growing demand for energy and to replace the outdated installations analysts estimate about 1000 MW of energy will have to be added annually.