29. Future investment commitments
As at December 31, 2022, PGE Group committed to incur capital expenditures on property, plant and equipment of approximately PLN 9,426 million. These amounts relate mainly to construction of new power units, modernisation of Group’s assets and purchase of machinery and equipment.
| (in PLNm) | As at December 31, 2022 | As at December 31, 2021 |
|---|---|---|
| Distribution | 2.824 | 1.058 |
| Renewables | 2.092 | 414 |
| Other activity | 2.067 | 3.570 |
| District Heating | 1.928 | 1.549 |
| Conventional Generation | 512 | 256 |
| Supply | 3 | 1 |
| Circular Economy | – | 4 |
| TOTAL FUTURE INVESTMENT COMMITMENTS | 9.426 | 6.852 |
The most significant future investment commitments concern:
- Distribution – investment commitments mainly related to grid assets amounting to approx. PLN 2,824 million,
- Renewables – modernisation of the upper reservoir of ESP Porąbka Żar – amounting to approximately PLN 909 million; performance of environmental studies together with preparation of the Environmental Impact Report and obtaining the Environmental Conditions Decision for the project involving the construction of the Baltica 1 wind farm in the Baltic Sea together with offshore and onshore connection infrastructure – amounting to approximately PLN 411 million; design and construction of new photovoltaic installations in over 40 different locations – amounting to approximately PLN 487 million;
- Other Activity – construction of two gas-and-steam units (PGE Gryfino 2050 sp. z o.o.) and contract for service for two gas turbines – approx. PLN 1,909 million,
- District Heating – construction of a gas-steam cogeneration power plant New EC Czechnica in Siechnice amounting to approx. PLN 747 million; construction of a gas-fuelled cogeneration source based on gas engines and a reserve and peak heat source in Bydgoszcz – amounting to approx. PLN 317 million; construction of Line II of the Thermal Processing Installation with Energy Recovery in Rzeszów – amounting to approx. PLN 324 million;