The TAURON Group generates energy using diverse generation capacity; however, the majority of energy is produced by conventional units – 4 power plants and 3 combined heat and power plants in TAURON Wytwarzanie and TAURON Ciepło. In 2015 the available installed capacity of all units (conventional and renewable) belonging to the TAURON Group exceeded 6.4 GW, i.e. it was comparable to the previous year (6.5 GW).

Installed capacity in MW by fuel type TAURON
Wytwarzanie
TAURON
Ciepło
TAURON
Ekoenergia
TOTAL
Hard coal 4 426 1 246  0 5 672
Natural gas and coking gas  0 85  0 85
Blast furnace gas  0 0  0 0
Biomass 80 110  0 190
Fuel oil  0 90  0 90
Wind  0 0 143 143
Wind  0 0 201 201
TOTAL 4 506 1 530 344 6 380
Installed capacity by type of unit TAURON
Wytwarzanie
TAURON
Ciepło
TAURON
Ekoenergia
TOTAL
Power plants (MWe) 4 506 0 344 4 850
Combined heat and power plants (MWe)  0 281  0 281
Combined heat and power plants (MWt)  0 1 093  0 1 093
Heating plants (MWt)  0 156  0 156

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In 2015 the TAURON Group’s power plants, combined heat and power plants and heating plants produced in total more than 16.8 GWh of electricity and almost 10 GJ of heat. The visible decline in heat generation year-on-year resulted from the higher average air temperature in the autumn and winter months of 2015, translating into lower heat demand.

TAURON
Wytwarzanie
TAURON
Ciepło
TAURON
Ekoenergia
TOTAL
Electricity [GWh] Heat [GJ] Electricity [GWh] Heat [GJ] Electricity [GWh] Heat [GJ] Electricity [GWh] Heat [GJ]
Hard coal 13 700 3 211 690 1 215 5 132 147  0 0 14 915 8 343 837
Mud 68 46 647 77 168 437  0  0 145 215 084
Natural gas and coking gas 8 12 222 0 66 245  0  0 8 78 467
Biomass 651 161 670 232 1 103 359  0  0 883 1 265 029
Wind  0  0 0  0 467  0 467 0
Wind  0  0 0  0 310  0 310 0
Wind 110 877 2 89 033  0  0 112 89 910
TOTAL 14 537 3 433 107 1 526 6 559 221 777 0 16 840 9 992 328

Units generating energy for clients also consume energy to power their machines, pumps and fans. The quantities of energy used for own needs are significant due to the complicated nature of these processes and the amount of equipment in the current production process.

[GJ] TAURON
Wytwarzanie
TAURON
Ciepło
TAURON
Ekoenergia
Kopalnia
Wapienia Czatkowice
TOTAL
Coal 151 587 636 15 560 667 26 244 167 174 547
Natural gas and coking gas 88 664 83 114 65 452 237 229
Mud 747 732 806 384 0 1 554 116
Heating oil 1 222 550 120 593 0 1 343 143
Liquid fuel 1) 0 1 175 37 390 38 565
Blast furnace gas 0 0 0
TOTAL 153 646 582 16 570 758 1 175 129 086 170 347 601
1) fuels: leaded and unleaded gasoline, diesel fuel, ethanol, special gasoline, motor oil, compressor, turbine lubricants and others
.
[GJ] TAURON
Wytwarzanie
TAURON
Ciepło
TAURON
Ekoenergia
Kopalnia
Wapienia Czatkowice
TOTAL
Biomass 7 203 561 2 982 872 0 10 186 432
Biofuel 0 0
Wind 99 605 0 99 605
Hydro 20 415 0 20 415
TOTAL 7 203 561 2 982 872 120 020 0 10 306 452
[GJ] TAURON
Wytwarzanie
TAURON
Ciepło
TAURON
Ekoenergia
Kopalnia
Wapienia Czatkowice
TOTAL
Electricity 156 122 999 867 248 130 806 74 444 157 195 496
Heat 9 213 643 222 344 987 13 512 9 450 486
TOTAL 165 336 641 1 089 592 131 793 87 956 166 645 982
[GJ] TAURON
Wytwarzanie
TAURON
Ciepło
TAURON
Ekoenergia
Kopalnia
Wapienia Czatkowice
TOTAL
Electricity 53 026 922 4 726 559 2 798 139 0 60 551 620
Heat 3 433 107 6 355 882 0 9 788 989
TOTAL 56 460 029 11 082 441 2 798 139 0 70 340 609

Higher energy consumption for own use means higher costs. That is why TAURON Group companies optimise their processes to improve and reduce their energy intensity. Monitoring energy consumption in all stages of generation plays an important role in efficiency gains. When energy demand is lower than generation capacity, power plants select units with the most best technical and economic ratios.

Due to retrofitting (e.g. hydroelectric power plants) and the application of more and more modern technologies and solutions, energy intensity is falling, whereby a larger quantity of energy generated in a power plant or combined heat and power plants can be delivered to clients. In 2015, the energy intensity ratio for TAURON’s three production companies decreased significantly.

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YearTAURON WytwarzanieTAURON CiepłoTAURON Ekoenergia
2014101915
2015121516

TAURON Wytwarzanie TAURON Ciepło TAURON Ciepło
Energy intensity ratio 10.39% 8.56% 4.52%
Type of energy Electricity and heat Electricity and heat Electricity

For ceratin efficiency improvement measures TAURON Group companies received white certificates confirming their energy efficiency gains. In 2015 the Energy Regulatory Office granted them to two companies, namely, TAURON Wytwarzanie and TAURON Dystrybucja.

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Energy efficiency improvement is cited ever more frequently with an eye to involving energy consumers by furnishing them with tools to monitor their energy consumption. More information on TAURON’s project called AMIPlus Smart City Wrocław may be found in chapter Reliability of supply.

The Czatkowice limestome mine installed thermal insulation in its mills to curtail natural gas consumption by using waste heat from screw compressors,

thereby achieving energy efficiency gains. Project execution transpired in 2015 and constrained natural gas consumption by 8%.

Carbon dioxide emissions concern all energy producers that use fossil fuels. In recent years this topic has become a political issue in connection with the European Commission’s ambitous efforts to slash CO2 through regulations that have generated extensive discussion across Europe. Being aware of the importance of the issue, TAURON monitors the EU’s legislative activity closely and actively participates in work to transpose EU directives into national law. It also conducts cutting edge research projects on carbon dioxide capturing in the combustion process and its conversion into synthesis gas (more on carbon dioxide capturing installations in chapter Environmental education

 

TAURON Wytwarzanie is running a project to build a pilot installation to generate synthesis natural gas (SNG) through a reaction between carbon dioxide from industrial processes (e.g. coal combustion) and hydrogen originating from water electrolysis. To conduct electrolysis the surplus electricity generated by renewable energy sources will be used – mainly during the night when the energy demand subsides.

The by-product is oxygen which may be used in external processes, e.g. oxy combustion and coal gasification. The synthetic natural gas produced may be pumped into the existing natural gas network to use it during peak hours for energy production, e.g. in a gas turbine. Thus, the implementation of this technology will contribute to increasing the storage capacity of energy in the form of methane while simultaneously using CO2 for economic purposes. The pilot installation is scheduled to be commissioned in Q1 2017.

 

In accordance with the act on trading in greenhouse gas air emission allowances, the power plants and combined heat and power plants belonging to TAURON Group are bound to monitor production installations in terms of their carbon dioxide emissions and prepare annual emission reports. These reports are subject to obligatory verification by an independent institution. The European Union regulation concerning the method of emission level monitoring, provides in detail how measurements and calculations should be conducted so that the annual emission report can be prepared, and the accuracy of the adopted calculations can be confirmed during independent verification.

The Group’s carbon dioxide emissions mostly originates from hard coal combustion. In 2015 TAURON Group units emitted 16.4 million tonnes of CO2, down 1.4 million tonnes from less than a year ago.

Emission of greenhouse gases
[tCO2]
Kopalnia
Wapienia Czatkowice
TAURON
Wytwarzanie
TAURON
Ciepło
GRAND TOTAL
Emissions in electricity generation 0 14 302 751 922 686 15 225 438
Emissions in heat generation 6 432 432 444 705 025 1 143 902
Total direct emissions 6 432 14 735 196 1 627 712 16 369 339
Biogenic emissions 0 681 872 319 506 1 001 378

 

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YearEmission of CO2
Emisja CO2
201321,7 million tonnes of CO2
201417,8 million tonnes of CO2
201516,4 million tonnes of CO2

Emissions of other pollutants into the air, in particular, compounds containing sulphur, nitrogen and dust, are also associated with energy production using fossil fuels. Their permissible levels are also regulated by the EU (Industrial Emissions Directive and BAT reference documents). To ensure suitable emission levels, the TAURON Group’s generation units are equipped with modern systems and installations to minimise emissions while newly built units (e.g. the 910 MW unit in Jaworzno) will comply with even more stringent emission standards.

In 2015 the quantities of emitted NOx, SOx compounds and other pollutants emitted into the air by TAURON Group edged down by approximately 200 thousand kg from 2014.

 

Kopalnia
Wapienia Czatkowice
TAURON
Wytwarzanie
TAURON
Ciepło
TOTAL
NOx 4 986 17 755 062 1 286 209 19 046 257
SOx 13 333 22 139 305 3 864 269 26 016 907
Total dust 17 234 990 286 304 786 1 312 306
Other 10 469 998 1 770 749 12 240 747
Total overall air emissions [kg] 35 553 51 354 651 7 226 013 58 616 217

A dust abatement system was installed in the Czatkowice limestone mine next to the crane landfill to reduce environmental dust emissions. This project was the initiative of the Processing Department manager who developed its underlying concept.

A promise was obtained from the Regional Fund of Environmental Protection and Water Management that it would grant a preferential loan to do this project. Construction was launched in 2015 and completion is scheduled in Q2 2016.

 

In 2015 Group companies undertook compulsory and voluntary measures to reduce greenhouse gas emissions.

 

Initiative Nature of initiative
compulsory (legal regulations) / voluntary
Reduction of greenhouse gases [tCO2]
TAURON Wytwarzanie Replacement of fuel – co-burning of biomass with coal legal regulations 124 226
Replacement of fuel – conversion of a dedicated biomass boiler (Stalowa Wola), commissioning a dedicated biomass boiler (El. Jaworzno II) legal regulations/ voluntary 574 415
Kopalnia
Wapienia Czatkowice
Thermal modernisation of mills no. 1 and 2 at the Milling Plant voluntary no data
TAURON
Ciepło
Coal to biomass converstion of a coal-fired boiler voluntary approximately 260 thousand

 

Climate issues are related to energy generation not only in the context of greenhouse gas ambient emission abatement but also in terms of climate change risk management. Environmental changes induced by global warming may exert a significant impact on the Group’s various areas; therefore, these risks are monitored on an on-going basis.

The costs of risk management are included in the budgets of the companies (risk experts) responsible for them. At present, TAURON is devising contingency plans (in case of risk materialisation) whose budgets will be determined.

 

Area Risk type Risk description Risk evaluation Risk management
Renewable Energy Sources Risk of hydrological drought (physical) volatility of hydrological conditions (insufficient water flow) leading to lower revenues on electricity production loss of 10% of planned revenue in hydroelectric power plants permanent monitoring of water management and hydrological facilities; regular inspections of their technical condition; regular cooperation and exchange of information with the Regional Water Management Authority; modernisation of barrages and generation units to increase capacity control; analysis of the status quo and designating power plants to postpone scheduled repairs and maintenance
Renewable Energy Sources Weather risk in the operation of wind farms
(physical)
risk of unfavourable weather conditions (excessive or insufficient wind velocity, icing of turbine rotor blades resulting in shutdown) causing reduction or periodical loss of revenues from electricity production loss of 5% of planned revenues of wind farms optimisation and automation of wind turbine performance; permanent monitoring of weather conditions related to wind capacity
Generation Risk of heat market loss
(other)
risk of consumers reducing their heat purchase orders driving down the heat volume sold and, consequently, deterioration of electricity generation efficiency as a result of progress in construction technology, thermal insulation of buildings and modernisation of heating systems of end consumers lower revenues due to ordered heat capacity in individual branches of TAURON Wytwarzanie searching for new consumers; pursuing flexible pricing policy
Heat Weather risk (physical) occurrence and persistence of weather anomalies. lower heat demand as temperatures trend up 1.8 degrees C above plan use of experience, expertise and financial instruments while planning heat sales, considering weather
Mining Risk of lower coal demand
(other)
risk driven by soft market conditions, driven by thermal modernisation of buildings, warm winters and abandoning coal as a fuel in residential buildings loss of 10% of sales revenues on coarse and medium grains ongoing analysis of coarse and medium-grain production; ongoing monitoring of market demand for medium- and coarse grains, marketing

 

Besides these risks, climate changes will affect the revenues generated by TAURON Sprzedaż and TAURON Dystrybucja – electricity demand swings affect volume and price (sales) and sales revenues on distribution services (distribution). In TAURON Dystrybucja climate changes leading to violent thunderstorms, wind and precipitation may effect grid failures triggering interruptions in energy supply and expenditures to repair them. Moreover, in the strategic perspective (going beyond the current material and financial plan), BAT findings (establishing strict emission standards for generation units) pose a risk for TAURON as it must incur costs to align its installations to the new regulations.