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Polish consortium in talks over EDF plants

French utility EDF is in talks with a Polish consortium over the potential sale of its combined heat and power plants in Poland.

The Polish government has stipulated that the assets, also including a large coal-fired power plant, should only be sold to Polish local interests, with a view to protecting overall energy security. Warsaw had previously stopped a sale of the assets to an Australian and Czech bidder.

On Wednesday EDF’s Polish subsidiary Kogeneracja said that EDF had formally ended the exclusive talks with IFM.
Rybnik coal-fired power plant
EDF put its heat and electricity cogeneration plants up for sale at the start of last year, along with its 1.8 GW capacity coal-fired power plant at Rybnik in southern Poland.

The cogeneration plants have a 15 per cent share of the heating market in Poland while the Rybnik plant supplies about 7 per cent of the country’s electricity needs.

A consortium of Polish state-run utilities PGE PGE.WA, Enea ENAE.WA, Energa ENGP.WA and PGNiG PGN.WA also submitted a joint bid for the assets and two sources familiar with the situation said EDF has now agreed to discuss a possible sale to the consortium.

EDF expects the consortium to offer at least as much as EPH and IFM were ready to pay for the assets, the other source said. According to local media EPH and IFM had offered a total of $366-488m.