Ladies and Gentlemen,
I have the honour to present the seventh Impact Report of Polskie Sieci Elektroenergetyczne. The publication shows the impact of our company on the development of the Polish economy and its various branches, as well as on society, the environment and climate. We have much to boast about ｰ in 2023, the total value added generated by PSEʼs operations amounted to PLN 16.94 billion, 17 percent more than the year before. We have also seen a decrease in greenhouse gas emissions.
Sustainability rooted in PSE’s operations
The world is moving toward universal electrification – the use of electricity in virtually every area of the economy. It is electricity that is the “fuel” of the future. What invariably remains PSE’s primary goal is to maintain stable operation of the national power system and ensure continuity of electricity supply. We are pursuing this goal in an environment of dynamic regulatory change, a key element of which is the EU’s climate policy as presented in the Green Deal.
Poland’s power sector must undergo an evolution in which renewable energy sources (RES), energy storage technologies and flexible and smart grids will play a huge role. Our task is to create the conditions for an increasing share of RES while ensuring system stability and rational use of energy. The priority is to increase the flexibility of the system, in which users have a major role to play. The idea is to maximise the use of low-cost renewable energy and manage capacity so that there is no shortage of electricity when RES are not operating. We are also facing the need to ensure adequate available capacity. To stabilise the system and meet the growing electricity demand, Poland will need twice as much capacity as that of the units currently planned and under construction.
To drive decarbonisation and electrification, we are implementing a huge investment programme. The draft Transmission Grid Development Plan for 2025-2034 with an outlook to 2037 provides for 389 transmission grid expansion and modernisation projects with a total value of about PLN 66.3 billion. More than 5,000 km of new 400 kV lines and 30 substations will be built, and all existing substations will be retrofitted. The grid projects under way will allow, among other things, the evacuation of power from offshore wind farms in the Baltic Sea and from the nuclear power plant, the integration of onshore renewable energy sources into the NPS, and the connection of new stable generation sources and energy storage facilities. The expansion of the grid will also enable new large energy electricity consumers to be connected, such as data centres and modern industrial plants.
We are also adapting market mechanisms to the changing situation. In 2023, we prepared for a major reform of the balancing market, making its rules more in line with the new generation structure. The changes also enabled integration with European platforms for the exchange of balancing energy. The reform was implemented on 14 June 2024.
Nearly PLN 17 billion of PSE added value for the economy
We have been measuring the scale of our impact on the national economy for several years. We calculate the size of the impact using Leontief’s input-output model. The total value added generated by PSE in the national economy in 2023 was PLN 16.94 billion, up 17 percent compared to 2022. The direct value added generated by our company in the electricity sector was 3.86 billion. PSE’s operations contributed to maintaining more than 47,000 jobs. We paid PLN 1.38 billion in taxes and contributions to the central government and local government budgets, including almost PLN 375.9 million in taxes to commune budgets.
We measure our own carbon footprint in the value chain
In 2023, we measured our organisation’s carbon footprint for the seventh time. This time, we expanded the analysis of greenhouse gas emissions volumes to include categories related to our value chain. According to the market-based method, compared to 2022, we achieved a 4.7 percent decrease in emissions including emissions in the value chain, and a reduction of as much as 18.3 percent in direct and indirect emissions. More than 76 percent of greenhouse gas emissions in PSE’s carbon footprint (according to the market-based method) resulted in 2023 from electricity generation used to cover losses incurred in the electricity transmission process. Emissions related to the production of purchased goods and the performance of services, most of which were contracts for modernisation and construction works, accounted for more than 20 percent of the carbon footprint.
We aim to further expand the scope of carbon footprint calculations in the coming years, increase the quality of the data used in the calculations, and further identify opportunities for action that PSE can take to reduce this impact.
We operate sustainably
Transparency and cooperation with all stakeholders – from regulators to local governments to businesses and energy consumers – are particularly important to us in our operations. At PSE, compliance with standards of ethics, transparency and open dialogue is a key asset. We believe that transition supported by ESG principles is the way to build a better future for the economy, the environment and society.
You can read more about PSE’s activities and initiatives on the following pages of the report. I believe that through our joint efforts, the power sector will become a symbol of innovation, stability and security.
Grzegorz Onichimowski
President of the Management Board
of Polskie Sieci Elektroenergetyczne S.A.