Energa is planning to build a new 1 GW coal-fired power unit at Ostroleka in northeast Poland.

The Polish government is currently formulating its capacity market mechanism where power producers are paid not only for generating electricity but also for keeping capacity available.
Energa
However the Polish coal operator is to press ahead with its new plant despite that process, which is designed to help state-run utilities finance the construction of more coal-fired power plants, at a time when some banks have turned away from financing coal and other projects that generate high levels of pollution.

“When it comes to Ostroleka, generally we are not waiting for the law to be introduced. This process will be conducted irrespectively of this,” Energa’s Chief Executive Officer Daniel Obajtek told a news conference on Wednesday.

The investment in building the unit is expected to total up to $1.7bn and will be co-financed by Enea, another state-run utility.

Energa will select a contractor in the first quarter of next year for construction of the unit, which is expected to be completed in mid-2023.

Energa’s Chief Financial Officer Jacek Koscielniak said, “We are in touch with the energy ministry and we hope that the legislative process (regarding the capacity market) will have a positive conclusion for us.”