French state-owned EDF has sold its combined heat and power assets in Poland to PGE (Polska Grupa Energetyczna).

The $1.57bn (€1.4bn) deal will see the Polish utility acquire eight cogeneration or combined heat and power plants in Gdynia, Gdansk, Kraków, Wroclaw, Torun, Zielona Góra, Zawidawie and Siechnica.
Logo of PGE (Polska Grupa Energetyczna).
The deal also includes the acquisition of Rybnik plant, the coal cogeneration plants of Krakow, Czechnica, Gdansk, Gdynia, Torun and Wroclaw, in addition to gas fired cogeneration plants of Zawidawie and Zielona Gora.

According to EDF, the transaction perimeter represents a total installed capacity of 4.4GWth and 1.4 GWe and will see the French company reduce its overall carbon footprint by 23 per cent.

The deal also included the heat distribution networks of Czechnica, Torun, Zawidawie and Zielona Gora.

PGE will indirectly own Wroclaw plant, the plants and heat distribution networks of Czechnica, Zawidawie and Zielona Gora through a 50% + 1 share stake via the Kogeneracja company.

Subject to regulatory approvals and authorizations, the deal is expected to complete in the second semester of 2017.