In order to minimize risk and maximize rates of return TAURON Group is planning to diversify its generation portfolio, selecting specific technologies accordingly, and develop an effective hedging policy, including electricity supply hedging.
TAURON Group’s mission is to ensure energy supply for customers based on best practices that guarantee an increase of shareholder value, while the Group’s vision is to be one of the leading energy companies in the region. The overall strategic objective remains the continuous growth of value to ensure return on capital invested for shareholders. Accomplishment of the above goal is measured based on the basic value creation metrics, i.e.: growth of EBITDA and ROIC.
In the coming years TAURON intends to focus on expanding operations in those lines of business that offer potentially the highest rate of return on investment. Furthermore, the company will zero in on diversifying its generation portfolio, improving efficiency and developing an effective organization. Cost discipline will also continue to be a priority in order to be prepared for any adverse forward price evolution scenario.
In order to minimize risk and maximize rates of return TAURON Group is planning to diversify its generation portfolio, selecting specific technologies accordingly, and develop an effective hedging policy, including electricity supply hedging. Such policy will enable us to reduce volatility of the Group’s financial results.
In Generation, Heat and RES segments TAURON Group is planning to restore and increase its installed generation capacity from the current 5.4 GW to approx. 6.15 GW in 2023. The growth will stem from commissioning new high efficiency hard coal-fired and gas-fired generation units, as well as wind farms. Further down the line the fuel mix is planned to include nuclear energy as a result of the Group’s involvement in the construction of such unit jointly with strategic partners. Distribution and Supply segments are also important growth areas.
TAURON Group’s total CAPEX in 2014-2023 will reach approx. PLN 37bn.
- 1,030 MW in coal based technology (910 MW at Jaworzno III Power Plant, cogeneration capacity: 55 MW at Zakład Wytwarzania Nowa, 65 MW at Zakład Wytwarzania Tychy),
- approximately 675 MW in gas based technology (225 MW at Stalowa Wola Combined Heat and Power Plant and approximately 450 MW at Łagisza Power Plant),
- approximately 500 MW in wind based capacity.
In 2023 the Group will, in accordance with its assumptions, have wind farms with the total capacity of approx. 700 MW, which will allow for achieving the Group’s goal of 800 MW from new renewable energy sources (including biomass). Investing in further wind farms is conditional on support mechanisms included in the ultimate law on renewable energy sources and any such projects will be financed off balance sheet.
92 percent of the Group’s installed capacity in 2014 is based on coal technologies. In 2023 their share will drop to approx. 74 percent, including 25 percent based on modern, high efficiency hard coal-fired units. The share of low emission technologies, i.e. gas, wind, hydro, biomass will be approx. 26 percent.
Total CAPEX in Distribution will reach approx. PLN 21.1bn, including mainly new customers and power sources connections and grid construction related thereto, as well as upgrading and restoring the existing assets.