Poland's PGNiG plans USD-1bn investment in new renewables division

Polish state-run oil and gas major Polskie Gornictwo Naftowe i Gazownictwo SA (WSE:PGN), better known as PGNiG, plans to spend as much as PLN 4 billion (USD 1bn/EUR 894m) on the creation of a dedicated renewable energy division.

The move is planned as part of an updated strategy for the entire group that should be presented by the end of 2020. PGNiG hopes to invest the above-mentioned sum over the next few years, beyond 2022, to achieve a renewable energy production capacity of up to 900 MW.

“Entering a new business line, namely RES, will allow us not only to build the value of the company, to increase and stabilise its revenue, but also to engage more intensively in the transformation towards a low-carbon and zero-emission economy,” stated Jerzy Kwiecinski, President of the group’s Management Board.

According to Arkadiusz Sekscinski, Vice President of the PGNiG Management Board, Development, the group is mostly keen on investing in wind power and solar photovoltaic (PV) projects.

“Considering our investment capabilities, the most attractive projects for us are those already existing or at a very advanced stage of development. There is enough of such projects on the market,” he said, adding that PGNiG will also seek to develop its own projects on sites owned by the group.

PGNiG pointed out that the first decisions regarding renewable energy investments could be made even before the release of the updated group strategy.

(PLN 1.0 = USD 0.254/EUR 0.224)

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