Instrat Foundation releases an updated version of the previous study on financial prospects for investments in coal based energy generation. In August 2018 we published a report titled Ostrołęka C – next steps for Europe’s last coal power plant. Its extension is issued shortly after the last in 2018, third capacity market auction – this is instrument is believed to be more than crucial in boosting investments in energy generation.
1) Ostrołęka C investment project would bring investors a negative net present value (NPV) of ca. -6.2 bn PLN (-1.5 bn EUR), compared to -2,3 bn PLN as the previous report showed. This exceeds the investment budget of ca. 6 bn PLN (1.4 bn EUR);
2) Ostrołęka C has won a 15-year long capacity agreement worth ca. 170 mln PLN yearly or 2.7 bn PLN totally – nevertheless, the study shows that over its whole lifecycle this power plant still would not be profitable and hence inviable;
3) Even if the fuel fell from sky i.e. coal was free-of-charge, just as wind and solar are, this unit would still be unviable. What is striking, the fewer hours it works, the lower the financial loss will be incurred.
4) The price (LCOE) of electricity generated from Ostrołęka C will be higher than the one from renewable energy sources (RES). It might generate power at a price of 500-513 PLN/MWh, whereas studies show that onshore and offshore wind parks cost as much as 300 and 420 PLN/MWh, and photovoltaics around 440 PLN/MWh.
5) Despite numerous and serious doubts about economic viability of this coal power plant, the investors and the Ministry of Energy still push for construction and avoid answering questions asked by experts and NGOs. It has still not been decided whether Enea will act as a co-investor, since it has been sued by its own labour union and its shareholder.
See our previous studies at the campaign website STOP Ostrołęka C power plant. The study has been commenced by Workshop for All Beings (Stowarzyszenie Pracownia na Rzecz Wszystkich Istot).
Contact: Michał Hetmański, email@example.com