Polish government to buy nuclear development company: Corporate

01 October 2020

The shareholders of PGE EJ1, a company created to build and operate Poland’s first nuclear power plant, have signed a letter of intent with the State Treasury regarding the acquisition of 100% of its shares. The transaction, if completed, will see the government take full control of PGE EJ1 at the end of the year.

Piotr Naimski signing the letter of intent on behalf of the Treasury (Image: PGE)

The letter of intent was signed today by the Government Plenipotentiary for Strategic Energy Infrastructure Piotr Naimski on behalf of the Public Treasury and by representatives of the four public shareholders of PGE EJ1. These are Polska Grupa Energetyczna (PGE), which owns 70% of the capital, and Enea, KGHM Polska Miedz and Tauron Polska Energia, which each hold 10% of the capital.

The document asks each party to perform all the activities necessary for the preparation and execution of the transaction. The intention expressed in the letter of intent is for the Treasury to acquire all of the shares of PGE EJ1 by December 31.

In a statement, PGE noted: “The letter of intent does not imply an obligation on the parties to complete the transaction, and the decision to execute it will depend on the outcome of the negotiations planned in this regard and the completion of the transaction. ‘other conditions specified in legal regulations or corporate documents. “

“The energy industry is currently at a stage of profound transformation and such a large investment in a nuclear project is beyond the financial capacity of energy companies,” said Wojciech Dąbrowski, President of PGE. “That is why today we are signing a letter of intent with the State Treasury to open negotiations on the possibility of the government administration taking over the entire investment in Poland’s first nuclear power plant.”

He added: “From the point of view of the rapid development of renewable energy sources and the phase-out of conventional energy, nuclear energy will be an important part of the energy system based on low-emission, zero-production. emission.

Poland’s draft energy policy until 2040 provides for the adoption by the coal-dependent country of nuclear energy, with the target of 20 TWh of nuclear electricity by 2035. The implementation The first reactor, with a capacity of 1000-1500 MW, is scheduled for 2033, with five more such units commissioned at intervals of 2-3 years.

PGE EJ1 was established by PGE in January 2010 as a limited liability company. In September 2014, Enea, KGHM Polska Miedź, Tauron Polska Energia and PGE entered into a shareholders’ agreement. The activities of PGE EJ1, a subsidiary of PGE, are currently focused on the preparation of the environmental impact study of the nuclear power plant project. The siting and environmental studies are also continuing in two locations under study: the coastal areas of Kopalino and Żarnowiec. Work on these reports is scheduled to be completed in the second half of 2021.

Research and writing by World Nuclear News