Quite often, the heating sector is referred to as a "forgotten asset of the energy transition", which is why this sector will be dynamically modernised in the nearest future. In order to meet the goal of climate neutrality by 2050, heat production must also be adapted to the challenges of the transition. District heating is a huge sector with a very different ownership structure. System heating emits significantly less air pollution than individual sources. Thus, by preferring this type of heat source it is possible to reduce the emission of harmful particulates into the atmosphere

- Minister for Climate and Environment Anna Moskwa pointed out.

Poland has one of the best developed heating networks in Europe - it is a great value, but also a challenge. The sector faces the necessity of pro-ecological changes and huge investments. In order to meet environmental standards while maintaining cost-effectiveness, district heating must modernise at a rapid pace. This is a prerequisite for stabilising the entire electricity system. Transformation of district heating is one of the key tasks set by the National Fund for Environmental Protection and Water Management within the framework of the strategy for decarbonization of the power industry - emphasizes Maciej Chorowski, President of the NFOŚiGW. The role of NFOŚiGW is to create appropriate instruments to finance the modernization process. The agreements signed today with PGE Energia Ciepła confirm that we are on the right track towards systemic change in the entire industry

- adds President Chorowski. 

One of the priorities of the Strategy of the PGE Group is the decarbonisation of the heat sector. We are consistently implementing investment projects aimed at changing coal fuel into gas fuel. The agreements signed today with the National Fund for Environmental Protection and Water Management for co-financing two of our projects will enable us to achieve the strategic objectives of the PGE Group, i.e. to increase the share of low-emission fuels to 70 percent in heat production by 2030. Our investments in the field of heat engineering are aimed at maintaining heat production capacity while taking into account environmental concerns

- said Wojciech Dąbrowski, President of the Management Board of PGE Polska Grupa Energetyczna.

The financing granted by the National Fund for Environmental Protection and Water Management concerns two district heating projects - the new Czechnica CHP Plant in Siechnice near Wrocław and the Zgierz CHP Plant. Both projects are designed to move away from coal fuel in the heat generation process at PGE locations.

In the years 2023-2029, in the majority of locations where the PGE Group owns its assets, installations will be commissioned which will result in a total or significant departure from coal fuel.

A total departure from coal is first planned in Zgierz, Kielce, Lublin, Rzeszów and Gorzów Wielkopolski, while a significant one in CHP plants in Bydgoszcz, Siechnice, Gdynia and Gdańsk. Gas, municipal waste, biomass, waste heat and renewable energy will be used to produce heat in the new and modernised heat units.

The construction of the new Czechnica CHP Plant is a project of key importance for the Wrocław agglomeration and will replace the existing coal-fired CHP plant in 2024. The modern unit will consist of a gas-steam unit, a peak load boiler house and a heat accumulator.  

The project has received funding in the form of a grant and a soft loan. The beneficiary of the subsidy is Zespół Elektrociepłowni Wrocławskich KOGENERACJA S.A., which is implementing the investment and belongs to PGE Energia Ciepła of the PGE Group.  The subsidy of over PLN 30 million was provided under the "Environment, Energy and Climate Change" Programme co-financed by the European Economic Area Financial Mechanism 2014-2021, for which the Programme Operator is the Ministry of Climate and Environment with the support of NFOŚiGW. Under another agreement with NFOŚiGW, the company will receive, for the same project, co-financing in the form of a preferential loan of PLN 300 million. The funds come from the Energy Plus priority programme.

The second project is the construction of a new cogeneration system based on gas fuel at the Zgierz CHP Plant. The new basic units of the CHP plant will be gas engines with electricity generators together with a peak load boiler supported by a RES installation. The investment was co-financed under the "Environment, Energy and Climate Change" programme, whose operator is the Ministry of Climate with the support of the NFOŚiGW. The subsidy granted for the project will amount to nearly PLN 22 million, granted under the Programme "Environment, Energy and Climate Change" co-financed by the European Economic Area Financial Mechanism 2014-2021.

The project "Construction of the New Czechnica Combined Heat and Power Plant" is financed by Iceland, Liechtenstein and Norway under the Norwegian and EEA funds and by the National Fund for Environmental Protection and Water Management. The project "Investment programme for EC Zgierz - construction of new generating units" is financed by Iceland, Liechtenstein and Norway as part of the Norway and EEA funds.