Actions in the field of climate neutrality result in an increased demand for green energy. Challenges are emerging in the form of the need to ensure balancing of the system with a significant share of distributed generation.
All these issues are the cornerstone of PSE Strategy for 2020-2030.
The defined values of our company give rise to ideas which guide the conduct of all employees of our organisation. These ideas are: modernity, professionalism, partnership, development, openness. Acting in line with those ideas ensures smooth and effective work as well as undisturbed professional and personal development.
PSE’s strategic challenges and objectives
The electricity transition in the current model of the European electricity market, in which large bidding zones are treated as “copper plate”, only electricity is traded on the market, and wind and solar sources are preferred among non-emission sources, will put pressure on transmission system operators, including PSE, to bear greater risks and costs.
- Increase in the share of non-tariff revenues
- Integration with RCC based on reservation and verification of RCC results
- Improvement of tariff accuracy
- Improvement of budge accuracy
- Keeping the churn rate at a minimal level
The currently promoted concept of climate neutrality is moving away from technological neutrality towards a preference for two types of renewable energy sources: wind farms and photovoltaics, which are expected to be supplemented over time by the storage of electricity in hydrogen and chemical batteries. Preferred types of RES will be distributed and will be characterised by weather-dependent generation variability, resulting in increased uncertainty about generation levels in the transmission network and distribution networks.
Due to the development of prosumers, the level of demand will also be fraught with great uncertainty. Nuclear generation will be an important element in the implementation of climate neutrality, by supporting the operational security of the power system due to its capability of stable operation.
- Implementation of PRSP
- Creation of balancing mechanisms and ancillary services supporting transition to low-carbon electric power
Import / export
The rising cost of purchasing carbon rights, the increasing share of zero-variable-cost units and the over-production of electricity from RES in neighbouring countries have led to a situation where the use of fossil fuel generation capacity is decreasing. For this reason, ageing and successively phased-out national generating units are not fully replaced by new sources which would allow the PPS capacity and energy needs to be met internally in the future.
In addition, legal changes at European level increase the pressure to maximise cross-border exchange capabilities, which can also contribute to reducing the use of domestic fossil fuel generation sources in favour of increased imports of cheaper electricity produced abroad.
The possible division of the market into bidding zones (and the possibility of subdividing zones into smaller zones) raises legitimate concerns about domestic generating units and their competition within the zones for access to the electricity market and cross-zonal capacity.
In view of the above, an important challenge for the PSE will be to foster cooperation with neighbouring countries, so as to, on the one hand, ensure the operational security of the system in a situation that prevents balancing with the use of only national sources and, on the other hand, to avoid an excessive expansion of cross-border networks and interconnections, the role of which may diminish over time.
- Ensuring compliance with CEP70
- Ensuring schedule accuracy
New infrastructure investments are becoming increasingly challenging due to growing public engagement caused by a lack of acceptance for investment projects or a lack of acceptance of how they are implemented.
The challenge for the PSE is therefore to carry out effective measures to increase public acceptance of investment in transmission infrastructure among local communities, while ensuring the reliable operation and development of the PPS.
- Clearing the legal status of infrastructure
- Optimisation of capital expenditure
European regulations impose a number of new legal requirements on TSOs that deeply interfere with operator processes at both EU and regional or national level.
The new requirements are aimed at increasing the use of transmission infrastructure and thus reducing safety margins.
The system works much more often at the limit of its capabilities. This approach clearly increases the system's vulnerability to external threats, including cyberattacks. Their probability is high due to the far-reaching digitisation and automation of these processes.
- Providing for planning uncertainties
- Providing for criticality
- Ensuring internal backup for outsourced functions
- Reducing the incident management time
A generational change is visible in the labour market, which has a huge impact on the functioning of companies and the approach to employing workers. Representatives of the youngest age group present different attitudes and expectations towards work. In addition, the labour market has become an employee's market, which is also confirmed by the demographic changes taking place in Poland.
- Effective talent management – securing qualified and prepared successors for all key positions.
- Changes in incentive schemes – the working atmosphere or development opportunities play an equally important role in recruiting employees, not just the pay level.
- Multigenerational team management – diversity management policies should take into account increasingly diversified (also in terms of age) teams of employees.
- New technologies – making the working environment more flexible, offering employees a greater sense of freedom while increasing efficiency and ensuring communication free from traditional time and location constraints.
- Work-life balance – work should make it possible to reconcile work and private life, which can be done, for example, by providing flexible working time or remote work.
- Employer branding – representatives of the younger generation of employees seeking career are guided by the image of the organization, hence the need for proper management of the employer's brand.
- Implementation of the model of competence and competitiveness of remuneration
- Building a knowledge-based organisation
PSE Strategy (2-year horizon) ─ Supplement
of electricity market
- Reskilling of a part of available human resources
- Attracting and recruitment of new people
- Ensuring the redundancy of facilities
- Reduction of operating costs
- Reduction of operating costs
- Developing a risk assessment methodology for generation adequacy
- Trying to gain time (Current analysis of the financial condition of electricity market participants)
- Maintaining the continuity of the investment process