Poland’s potential €33 billion in power contracts

Power projects valued at a potential €33.3 billion are in the pipeline in Poland, according to research company PMR.

Several medium-sized projects with the aggregate capacity of nearly 500MW and valued at PLN2.6 billion (€600 million) are currently underway, while contracts totalling PLN17 billion (€4 billion) with an aggregate capacity of over 3,000MW, have been awarded and are about to enter the construction phase.

In the long-term, PMR said 14 projects with the estimated value of over PLN38 billion (€9 billion) are now in the tender phase, while projects worth an estimated PLN64.9 billion (€15.3 billion) are in the preparation phase, and projects worth PLN18.8 billion (€4.4 billion) are in the planning phase.

The projects in the preparation phase include the development of Poland's first nuclear power plant, which is estimated to cost PLN40 billion (€9.4 billion). Polish utilities Polska Grupa Energetyczna , Enea and Tauron, together with mining company KGHM, signed a deal at the start of September to share the cost of building the nuclear power station.

Despite the large amount of investment in the pipeline, PMR warned that delays in the implementation of planned projects are typical for the power sector.

PMR head construction analyst Bartlomiej Sosna said, "Intensive implementation of too many large power projects could destabilise the construction market as did the rapid growth of funding opportunities for projects in the housing market between 2006 and 2008 and in the road construction market between 2010 and 2012. However, not all of the projects which are in the pipeline will enter the construction phase as many of them compete with each other."

PMR added that Poland's power engineering segment was currently the only way for the construction industry to overcome its current slowdown and a remedy to the falling number of investment projects in the road construction sector.