The overriding aim of the Company is growth of goodwill guaranteeing return on the invested capital for the shareholders. In addition, the Company carries out tasks related to ensuring Poland’s energy security. Due to the large share of regulated activity in the business structure, the Group continues to be a low risk profile enterprise. As a result, it is relatively immune to unfavorable changes on the elec-tricity market. In response to evolving regulatory and business environment, in 2016, the Energa SA Management Board adopted a document entitled “Energa SA Group Strategy for 2016-2025”.
The Energa SA Group consistently attempts to become a leader among distribution system operators by increasing effectiveness and grid reliability in conjunction with the highest quality of customer service. In 2018, in the Distribution Business Line, in accordance with the Long-Term Plan of Strategic Investments, capital expenditures are planned to increase up to PLN 1.3 bn.
In 2018, the Energa SA Group will support and stimulate the development of electromobility in the area of its operations. This is a new energy market segment, with a dynamic growth prospects which requires, due to its uniqueness, developing independent energy distribution capacities. To ensure stable development of the new market segment, the Distribution Business Line will take actions in two areas: cooperation with the local governments and investments in the MV and LV networks from the perspective of connection of charging stations.
2018 will be another year of application of the “Distribution System Operator Regulation Strategy for 2016-2020”. These principles introduced far-reaching changes, among others, in calculation of return on employed capital, amount of operating expenses included in the tariff and qualitative regulation.
In 2018, a “Concept of operation of LV transmission grid and 110 kV distribution grid closed for the area of operation of Energa-Operator S.A. until 2030” will be developed together with PSE S.A. This document will make it possible to plan optimum development of the power grid infrastructure for the assumed capacity demand increase scenarios and planned connections to the power grid and will be the basis for preparation, in 2019, of the Company’s new Development Plan for 2020-2025.
The Distribution Business Line aspires to be a leader in implementing innovative technical, organizational and process solutions.
In the Generation Business Line, according to the Long-Term Plan of Strategic Investments, capital expenditures planned to be incurred in 2018 amount to PLN 0.4 bn, however their level depends to a certain extent on the timing and outcomes of the RES energy auctions. The remaining expenditures result from the necessity to modernize the existing assets and conducted development activities.
In December 2016, a competitive dialogue order was announced for selection of the contractor for the Ostrołęka C power plant, which was continued in 2017. In the course of the con-ducted activities, by 28 December 2017, three bids for construction of the Ostrołęka C power plant were submitted. Under the investment agreement signed on 8 December 2016, ENEA S.A. became a co-investor in the project. In 2017, the company increased its share in the project and in 2018 it plans to reach the target level of 50% of the shares in the special purpose vehicle Elektrownia Ostrołęka S.A.
As regards the Vistula hydro power plant, in December 2017, three Ministries – Environment, Marine Economy and Inland Navigation and Energy, signed an agreement on construction of the Siarzewo barrage. The next milestone for the project was the issue of a positive decision on environmental conditions for the project on 29 December 2017. Due to the long-term experience in managing the hydro power plant in Włocławek, the Energa SA Group will act in the capacity of an expert in the in-vestment process and is interested in participation in the construction and operation of the hydro power plant on the Siarzewo barrage.
Energa-Obrót, as trading company, and Leading Entity of the Sales Business Line in the ENERGA SA Group, operates in the dynamically developing electricity market, explored by an increasing number of players, which results directly from the constant increase of the domestic increase in electricity consumption and increased gross domestic product growth.
In response to the evolving market environment, dynamically emerging competition and potential mar-ket fragmentation, the “Energa SA Group strategy for 2016-2025” has been devised, defining also the tasks dedicated to the Sales Business Line captured in Program 5 entitled “Rolling out a new customer-oriented business model and developing new business areas” and appointing Energa-Obrót S.A. as the Program Leader.
The Sales Business Line in the Energa SA Group consistently takes actions aimed at constant in-crease of the profit levels and increase of the customer portfolio.
