PGE gets go ahead for $3bn coal power plant

Poland’s largest utility is to go ahead with its plan to build a 1800 MW coal power plant after a court order lifted a ban.

PGE SA (PGE), 62 per cent state owned, will go ahead with its 9.4 billion-zloty ($3 billion) project to build a power plant in Opole and has already signed a deal with Rafako SA (RFK), Polimex-Mostostal SA (PXM) and Mostostal Warszawa SA (MSW) for the 1,800-megawatt, coal-fired plant in southern Poland.

Coal power plant

In January, PGE lost a permit for the project because of protests from environmental law organization ClientEarth.

“The ruling is good news and there are no longer any legal barriers to starting construction,” Treasury Minister Mikolaj Budzanowski said in a e-mailed statement. “There’s a real opportunity to complete this project as originally planned, a state-of-the-art power plant on the biggest scale in Poland.”

Polish state-controlled utilities plan to spend about 170 billion zloty by 2020 to replace aging facilities and comply with European Union regulations. The majority of coal-fired plants in the country, which relies on the fuel for about 90 percent of its electricity, are more than 30 years old.

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