PGE Energia Ciepła from the PGE Group has launched the first stage of construction of a modern heat source at the Kraków combined heat and power plant, which will ensure safe and stable supplies for one of the largest district heating markets in Poland. The general contractor is a consortium of Polish companies: Unibep SA and SBB Energy SA. The installation is scheduled to be commissioned in 2028.
The transformation of the district heating sector is one of the most important challenges the Polish energy sector is facing. We do not treat it merely as a regulatory obligation; It is an opportunity to strengthen Poland’s energy security, boost the competitiveness of the national economy, and improve the quality of life for residents of Polish cities. By implementing modern technologies, such as the cogeneration heat source currently under construction at the Kraków Combined Heat and Power Plant, we are creating an energy system that will be more efficient, stable, and environmentally friendly. We are pleased that Polish companies, led by PGE, are the main drivers of this change, said Miłosz Motyka, Minister of Energy.
The transformation of the heating sector is one of the pillars of the development of Poland’s energy sector and the entire economy. Stable heat supplies for consumers are a crucial element of ensuring the country’s energy security, and our primary goal is for this to be achieved efficiently and with a positive impact on air quality for residents of major cities. Investments like the one starting today in Kraków represent another step towards the development of modern and environmentally friendly heat generation sources. It is particularly important to me that this project is being carried out by Polish companies, which, together with PGE, are building the future of Poland’s energy sector, said Eliza Zeidler, Deputy Minister of State Assets.
The construction of a new gas-fired heat source in Kraków represents a significant step in PGE Group’s transformation toward modern district heating systems. This is an investment that also brings us closer to achieving our strategic goal of completely phasing out coal-based heat generation in all our combined heat and power plants by the end of 2030, including here in Kraków,” said Dariusz Marzec, President of the Management Board of PGE Polish Energy Group. “The first stage of the construction of the new Kraków CHP plant will be carried out by a consortium of Polish companies: Unibep SA and SBB Energy SA. The involvement of domestic companies in such a significant project is proof that the energy transition within the PGE Group goes hand in hand with the development of the Polish economy. The entire investment program of the Kraków combined heat and power plant, scheduled until the end of 2034, is valued at over PLN 2.7 billion. I am convinced that the majority of this amount will flow into the domestic market and support local companies, said Dariusz Marzec.
In just five years, the residents of Kraków will benefit from heat produced entirely without coal, and in just three years, thanks to the completion of the first stage of construction of a modern heat source at the Kraków combined heat and power plant, coal consumption will decrease by over 200,000 tons annually. This investment, valued at nearly PLN 1 billion, will significantly strengthen Kraków’s district heating system and become a symbol of innovation and responsibility for the future. As part of it, two gas engine systems will be built, with a total capacity of approx. 100 MWe and 100 MWt. Thanks to it, we will improve energy generation efficiency and contribute to further improvements in air quality,said Grzegorz Krystek, President the Management Board of PGE Energia Ciepła.
In the first stage, the modern cogeneration heat source in Kraków will consist of 10 gas engines divided into two units, each with an electrical capacity of 49.8 MWe and a thermal capacity of approx. 50 MWt, allowing for the simultaneous production of electricity and heat in a more efficient manner. The investment is being carried out by a consortium of Polish companies, Unibep and SBB Energy SA. Thanks to this investment, coal consumption at CHP Kraków will decrease by 3300 railcars annually.
We are proud to be part of PGE's strategic projects and to support the Group in its transformation toward a sustainable and modern energy sector. The investment in Kraków is one of the priorities for Unibep SA in terms of both its business segment and regional development. Thanks to the expertise of our team and good cooperation with our consortium partner, SBB Energy SA, we want to once again prove that Polish companies with Polish capital can meet the highest expectations in executing energy infrastructure projects, said Andrzej Sterczyński, President of the Management Board of Unibep SA.
This project is an example of how ambitious decarbonisation goals can be translated into concrete, technologically advanced solutions for the residents of Kraków. As the Lead Designer and technology partner of the consortium, we are responsible for integrating the key installations and systems, drawing on our over 30 years of experience in the energy sector. I believe that, together with PGE Energia Ciepła and Unibep SA, we will carry out a project that will significantly enhance the efficiency and safety of the local heating infrastructure,said Ziemowit Słomczyński, President of the Management Board of SBB ENERGY SA.
The next stages of investment at the Kraków combined heat and power plant will ensure that, by the end of 2030, the heat supplied to residents will be produced without coal. Subsequently, by 2034, the plant will achieve full transformation, producing both heat and electricity in modern generating units with a total thermal capacity of approximately 950–1150 MWt and an electrical capacity of 150 MWe. The thermal capacity will be tailored to the heating needs of Kraków’s residents and the developing heat market. Thanks to the new installations, by 2035 carbon dioxide emissions at CHP Kraków will be reduced by over 60% compared to 2025.
Currently, PGE Energia Ciepła in Kraków produces 70% of the district heat that supplies over 10,000 buildings and facilities in Kraków, Skawina, and Zielonki, including approx. 300 000 apartments.
Strategic transformation of the heating sector
For several years, PGE Energia Ciepła has been consistently transforming the face of Polish district heating by investing in modern heat and electricity generation sources. Between 2018 and 2024, the company allocated approx. PLN 3.6 billion to decarbonisation investments in the heating sector.
The decarbonisation program for generation assets includes two key stages: phasing out coal in production processes by 2030, followed by a gradual reduction of emissions until achieving climate neutrality.
According to its strategy, the PGE Group plans to invest approx. PLN 18 billion in modern district heating by 2035, of which PLN 15 billion will be allocated to investments in new generation technologies and PLN 3 billion to the development of integrated heating systems in locations where it holds generation assets.