Ostroleka C, Poland’s last new coal plant, makes no economic sense and is caught in the middle of a fight between a Prime Minister and Energy Minister in a country hosting COP24 in December.
The project is a joint venture between two Polish state-controlled companies, Energa SA and Enea SA, with Polish taxpayers on the hook for future losses.
Commenting for Carbon Tracker, Senior Analyst Utilities and Power Matthew Gray said: “This could well be the last coal plant constructed in Poland and, if it gets built, it is destined to be a financial and economic disaster.
"Given the proposed project is almost entirely dependent on capacity market payments, which appear far from guaranteed, we believe Ostroleka C risks destroying shareholder value unnecessarily.”
Ostroleka C will get the same 15 year price as the one year price of existing capacity. It will not be able to control the price that is set. The experience of recent UK capacity market auctions has been for new-build projects to struggle to bid low enough to beat out existing capacity.
Energa has called an EGM for 3 September, at which the sole question is a shareholder vote on commencing construction of Ostroleka C.
Read the article online at: https://www.worldcoal.com/coal/29082018/ostroleka-c-burning-through-more-money-than-coal/