Ostrołęka power station

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Ostrołęka power station is an operating power station of at least 681-megawatts (MW) in Ostroleka, Masovian, Poland with multiple units, some of which are not currently operating.

Location

Table 1: Project-level location details

Plant name	Location	Coordinates (WGS 84)
Ostrołęka power station	Ostroleka, Masovian, Poland	53.103611, 21.6125 (exact)

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

• C, Phase A Unit 4, Phase B Unit 1, Phase B Unit 2, Phase B Unit 3, Unit C: 53.103611, 21.6125

Project Details

Table 2: Unit-level details

Unit name	Status	Fuel(s)	Capacity (MW)	Technology	CHP	Start year	Retired year
C	Construction	fossil gas: LNG	750	combined cycle	not found	2024 (planned)	–
Phase A Unit 4	Operating	coal: bituminous, bioenergy: unknown	34.1	subcritical	–	1958	–
Phase B Unit 1	Operating	coal: bituminous	221	subcritical	–	1972	2026 (planned)
Phase B Unit 2	Operating	coal: bituminous	200	subcritical	–	1972	2026 (planned)
Phase B Unit 3	Operating	coal: bituminous	226	subcritical	–	1972	2026 (planned)
Unit C	Cancelled	coal: bituminous	1000	ultra-supercritical	–	2020	–

CHP is an abbreviation for Combined Heat and Power. It is a technology that produces electricity and thermal energy at high efficiencies. Coal units track this information in the Captive Use section when known.

Table 3: Unit-level ownership and operator details

Unit name	Owner	Parent
C	ORLEN Group SA; Polskie Górnictwo Naftowe i Gazownictwo SA; Energa SA	Energa SA; ORLEN Group SA; ORLEN Group SA
Phase A Unit 4	ORLEN Group SA; Polskie Górnictwo Naftowe i Gazownictwo SA; Energa SA	Energa SA; ORLEN Group SA; ORLEN Group SA
Phase B Unit 1	ORLEN Group SA; Polskie Górnictwo Naftowe i Gazownictwo SA; Energa SA	Energa SA; ORLEN Group SA; ORLEN Group SA
Phase B Unit 2	ORLEN Group SA; Polskie Górnictwo Naftowe i Gazownictwo SA; Energa SA	Energa SA; ORLEN Group SA; ORLEN Group SA
Phase B Unit 3	ORLEN Group SA; Polskie Górnictwo Naftowe i Gazownictwo SA; Energa SA	Energa SA; ORLEN Group SA; ORLEN Group SA
Unit C	ORLEN Group SA; Polskie Górnictwo Naftowe i Gazownictwo SA; Energa SA	Energa SA; ORLEN Group SA; ORLEN Group SA

Project-level coal details

• Coal source(s): Bogdanka coal mine

Background

Original Coal Units

Ostroleka Power Station is owned by Energa. The power station consists of two parts. The Ostrołęka A combined heat and power plant has an installed capacity of 93MW electricity and 456MW of heat, built in 1956 to 1958. It was retired in 2015. The Ostrołęka B power station was built in 1972. It consists of three units with combined installed capacity of 647MW.

In July 2023, Poland's Treasury made financial offers to several state-owned power utilities to transfer their coal mines and coal power plants into a new state-owned company, NABE. Energa was offered 153 million zloty (US$38.6 million) for the Ostroleka plant. The government reportedly wanted to assume responsibility for the coal plants to allow the existing utilities to attract private finance for renewable projects.

Proposed Coal Unit

Construction of a new 1,000 MW unit, known as Ostroleka C, had been expected to start in 2013 with commissioning scheduled in 2015. Coal would be supplied by coal from the Bogdanka coal mine.

In September 2012 ENERGA S.A. announced that it had suspended plans to build the new plant due to problems securing financing. The company said that it would continue looking for a strategic partner but failure to secure one would mean freezing the project until more beneficial market conditions prevail. In October 2012 Energa said it was considering switching from coal-fired generation to using gas as a feedstock fuel for the shelved unit, and may also reduce the unit’s proposed capacity by more than half to 450 MW.

During a visit to Ostroleka in October 2015, the president of the Law and Justice party declared the government will return to the exploration of coal mines for Polish energy independence, and will revive plans for the Ostroleka coal plant.

In November 2015 it was reported that Energa and Enea are considering cooperating in the construction of the new unit at Ostroleka. However, talks are at a very preliminary stage.

In September 2016 Energa and Enea signed a letter of intention regarding development of a 1,000 MW coal plant in Ostroleka. They say permits for the plant are still valid, and the companies plan to call for tenders before end-2016 to begin construction. The planned completion date is 2023.

In December 2016 Energa and Enea began planning to invite bids to build the plant. It is planned for commissioning on December 31, 2023.

In September 2018, Enea’s shareholders voted in favor of the company joining the project with Energa.

In October 2018 a groundbreaking ceremony was held at the power station.

Shortly after the groundbreaking ceremony, ClientEarth launched legal action against Enea over the company’s decision to participate in the consortium proposing to build the 1000 MW Ostroleka C plant. ClientEarth, which is a shareholder in Enea, argues the project poses an unacceptable risk to investors due to rising carbon prices, competition from cheaper renewables and exposure to European Union energy reforms on state subsidies for coal power plants. The investment agreement between Enea and Energa, the other utility in the consortium, allows either utility to withdraw from the project before the commencement of construction if it is considered that the plant will be unprofitable.

Construction began in December 2018. The general contractor for the plant's construction is a consortium of GE Power and Alstom. The plant is reported to be ultra-supercritical.

In August 2019, a Polish district court ruled as invalid Enea's 2018 decision to join the project with Energa. Enea said it will appeal the decision.

In November 2019, Polish Climate Minister Kurtyka said it was "investors' decision whether Ostrołęka C is built", indicating the project no longer had the support of the government. Poland's state-owned power company PGE Group has officially withdrawn from the talks and will not become the third investor in Ostrołęka C. The project is still seeking financing. The following day it was reported that former vice Energy Minister turned Member of the European Parliament Grzegorz Tobiszowski, a supporter of Ostroleka C, said too much time had passed to build the coal plant.

In December 2019, Polish petrochemical company PKN Orlen announced its planned takeover of ENERGA Elektrownie Ostroleka S.A., one of the sponsors of Ostrołęka C.

In February 2020, Reuters reported that ENERGA and Enea had decided to freeze their financing of Ostrołęka C which could result in the freezing of the plant's construction, only 5% completed. Among the reasons given for this decision were the companies' inability to secure bank financing for the controversial project as well as PKN Orlen's signalling that it may choose to use gas instead of coal as a fuel source for the plant.

In May 2020, following Polish oil refiner PKN Orlen's takeover of Energa, PKN Orlen announced that it will only complete the power plant if it is fueled by gas and not coal. It remains unclear when a decision on the potential coal to gas plant switch will be made.

In June 2020 the project promoters confirmed that Ostrołęka C was cancelled following a comprehensive analysis which found the project to be unfeasible largely due to the promoters' inability to source financing from international lenders. A trilateral agreement was struck between Energa, Enea and PKN Orlen to pursue the conversion to a gas plant at the site. Enea then announced in December of 2020 it was leaving the project. The developers are currently PKN Orlen, Energa, and Polskie Górnictwo Naftowe i Gazownictwo (PGNiG).

At an extraordinary general meeting in January 2024, Enea's shareholders overwhelmingly backed a resolution supporting legal action against the former directors and insurers of Ostrołęka C to recover losses on the failed bid to build the coal plant. The incomplete project had reportedly cost the company US$160 million.

Gas Unit

In March 2021 PKN Orlen began demolition of the cancelled coal unit. The gas unit is expected to be commissioned in 2024. The three Ostroleka B units will likely be retired by 2026.

Opposition

On April 16, 2018, eight civil society organizations called on Poland to divest from ENERGA and ENEA, two companies implementing the coal plant in Ostroleka. The organizations cite harmful impacts of the plant on asthma in children as well as being “profit-oriented.” A report by Michal Hetmanski and Filip Piasecki in Warszawa 2018 of Poland also identified how the Ostroleka plant is not a rational project, as it suggests high environmental costs as well as financial costs. Another report by the Carbon Tracker Initiative in August 2018 highlighted how the net value of the Ostroleka power plant is negative and is a clear financial risk to investors.

In October 2018, ClientEarth filed a legal challenge against the Polish energy company Enea to greenlight the Ostroleka power plant. With ClientEarth being represented by international litigation firm Boies Schiller Flexner, as well as Karasek & Wejman in Polish court proceedings, judges in Gdansk, Poland revoked the power plant permit. Judges agreed that the regional authority’s decision-making process was unlawful.

On December 3, 2019, the Supreme Audit Office (NIK) published a report that confirmed concerns over coal plants in Poland, including Ostroleka power plant. The companies in charge of Ostroleka were ordered to pay fines and penalties for the problems in the construction plans of Ostroleka. By February 2020, finances for Ostroleka were pulled as a result of “changing market circumstances triggered by climate policy, and the continued flight of global capital away from coal.” Court rulings against the companies in charge of Ostroleka from ClientEarth had deemed the Ostroleka plant invalid and lacking proof of profit.

Financing

ENERGA and Enea were financing Ostrołęka C with their own capital but, as of March 2020, were unable to secure bank financing for the project.

Articles and Resources

Additional data

To access additional data, including interactive maps of the power stations, downloadable datasets, and summary data, please visit the Global Coal Plant Tracker and the Global Oil and Gas Plant Tracker on the Global Energy Monitor website.