Electricity distribution

For PGE Dystrybucja S.A., connection tasks are about development, resulting in an increase in connection capacity and contributing to increased connection capabilities in the future.

In 2022 the largest expenditures in amount of PLN 1 097 million were incurred for connection of new off-takers.

The LTE450 communications network is one of PGE Group’s most important investment tasks. LTE technology provides voice connectivity as well as, indispensable in this day and age, broadband connectivity. The state-of-the-art LTE450 network and the telecommunications system under construction will support the integration of renewable energy sources, distributed energy and energy storage, as well as providing reliable dispatcher connectivity and remote communication with energy meters.

The PGE Group’s action plan for the next few years envisages the implementation and launch of basic services of the LTE450 network by 2025, the successive expansion of its coverage, the provision of basic connectivity services, as well as the development of new services dedicated to the energy sector.

The scope of implementation also envisages work outside the PGE Group, in particular for other entities in the energy sector.

In 2022, tender proceedings were carried out for the purchase and implementation of CORE LTE450 core network components and the purchase and implementation of RAN LTE450 radio network components together with technical support services.

Already in 2023, PGE Dystrybucja signed an agreement with Ericsson for the supply and implementation of RAN (Radio Access Network) radio components. The RAN radio network will include more than 500 PGE Dystrybucja base stations, covering an area of nearly 40% of the country with LTE450 coverage.

The deployment of RAN and CORE core radio equipment will form the backbone of the launch of LTE450 services for the power industry. The scope of work in accordance with the signed RAN contract includes the implementation and maintenance phase of the radio infrastructure until 2033.

The contractor, once the implementation work has been completed, is also obliged to provide warranty and technical support services until August 2033, in line with the current term of the 450 MHz frequency reservation.

The PGE Group completed the final stage of the investment in 2022 for the construction of two high-voltage cable lines from the 400/110 kV Mościska substation, which belongs to PSE S.A., to the 110/15 kV substation in Łomianki and towards the 110/15 kV Czosnów substation. On November 22, 2022, the final acceptance protocol of the investment was signed.

These actions have made it possible to 'close the power ring’, as a result of which, in the event that one line is switched off or some of its elements are damaged, energy continues to be supplied to customers. The 110/15 kV substation in Czosnów, together with the high-voltage lines, will improve the security of electricity supply and enable new facilities to be connected to the network.

The implementation of the project is mandatory and results from the requirements placed on Distribution System Operators by lawmakers in the amended Energy Law regarding the installation of remote reading meters. According to the provisions of the law, the DSO has until December 31, 2028, to install remote reading meters connected to a remote reading system representing at least 80% of the total number of end-customer energy consumption points.

EP Directive 2019/994 specifies that at least 80% of final customers must be equipped with smart meters.

The rationale for replacing meters at all customers by 2030 is mainly related to the need to ensure equal treatment of customers and to provide a uniform way of implementing business processes, both in terms of customer relations, vendors, as well as in terms of maintenance of metering systems, which will also maximise project benefits.

The company intends to allocate a total of PLN 1.49 billion for the project in 2022-2025, including PLN 0.74 billion from the series E share issue by PGE Polska Grupa Energetyczna in the first half of 2022.

The program to increase the share of underground cable lines to minimum 30% in the medium-voltage (MV) network of PGE Dystrybucja by 2030 consists of the reconstruction of medium-voltage power grids from overhead lines to cable lines, in particular in the locations of those sections of overhead lines where the nuisance and failure impact is the greatest.

In practice, this means the construction of a total of more than 11,000 km of MV cable lines, while dismantling around 8,800 km of overhead lines.

PGE Group currently has the longest overhead and cable network in the country – due to the size and low density of the distribution area, the average share of cable networks in the Group’s MV lines is 22%, against a national average of 28% and a European average of around 50%.

The project will bring tangible benefits as regards reducing operating costs and optimising operations:

• minimised lost benefits due to undersupplied energy
• decreased costs incurred for grid operation
• reduced network loss costs

From the customer’s point of view, the project will mean increased security of supply:

• twice the reduction in SAIDI relative to the base investment plan
• ability to meet the increasingly stringent quality regulation requirements imposed by the Energy Regulatory Office

The company intends to allocate a total of PLN 1.22 billion to the project by the end of 2023, including PLN 0.61 billion from the series E share issue by PGE Polska Grupa Energetyczna in the first half of 2022.

The program assumes the modernisation of the grid in order to reduce congestion, increase connection capacities and accelerate connection processes. With the funds raised from the share issue, it will be possible to build an additional 1,100 km of connections and 800 MW of additional connection capacity for RES sources by 2023.

The company aims to allocate a total of PLN 0.52 billion for the project in 2022-2023, including PLN 0.26 billion from the series E share issue by PGE Polska Grupa Energetyczna in the first half of 2022.