Tauron - South Poland CHP

Promoter – Financial Intermediary

Południowy Koncern Energetyczny SA

Location

• Poland

Description

The project concerns the construction and commissioning of a state-of-the-art high-efficiency hard coal-fired cogeneration (CHP) unit and associated infrastructure, which will replace an existing old and inefficient unit of the Bielsko-Biała cogeneration plant.

Objectives

The project will contribute to meeting heat and electricity demand at a competitive cost using a domestic source of coal. Modern state-of-the-art technology with high energy conversion efficiency will minimise the negative environmental impacts of the project. The use of coal from national reserves should contribute to increase security of energy supply , both in terms of available volumes, due to lower import dependency, and in terms of prices, due to lower volatility.

Sector(s)

• Energy

Proposed EIB finance (Approximate amount)

Up to PLN 300 million (EUR 75.8 million)

Total cost (Approximate amount)

Estimated to amount to PLN 619.9 million (EUR 155.95 million)

Environmental aspects

Due to its capacity, the project is subject to the Annex 1 of the EIA Directive and was required to undergo a full Environmental Impact Assessment. The EIA has been finalised and the related public consultation process completed. The results of the analysis carried out under the EIA show that the plant, which will be built within the boundaries of an existing facility, is not expected to change the visual quality of the landscape or to have a negative impact on any site of nature conservation.

Due to its higher efficiency the project will significantly contribute to the reduction of CO2 emissions when compared to the existing plant it will replace. The project is expected to achieve prime energy savings of approximately 25% and thus is classified as a high efficiency co-generation plant under the CHP Directive. The project complies with, and surpasses, the atmospheric emission limits defined by the Large Combustion Plant (LCP) Directive 2001/80/EC.

Procurement

The promoter is a public undertaking and follows public procurement procedures in compliance with the Directive 2004/17/EC and with the Polish Public Procurement Act. The promoter’s approach for the procurement of works, goods and services will be further evaluated during the appraisal.

Status

Signed - 24/10/2011