Description of activity

The principal object of Company’s activity is the combined generation of heat and electric power. Hard coal is the basic fuel used for the production and natural gas is used as an auxiliary fuel. The Company produces combined heat and power in its four turbine generators. At present, the power capacity installed at the Company amounts to 73.9 MWe, with 431.6 MWt of the installed thermal capacity. The yearly average use of electric power amounts to 35.5% and the average use of thermal power in the heating season is approx. 19%. The generated heat is transmitted mainly to the municipal heat distribution system operated by the heat supply companies in Zabrze and Ruda Śląska.
In Zabrze the demand for thermal power transmitted through heating water is estimated at 630 MW. The Company supplies nearly 161 MWt (25% market share) to the Zabrze market. In Ruda Śląska the heat energy market is estimated at 750 MWt. The Company supplies there approx. 49 MWt (6.5% market share). The Company is the main heat supplier for the city of Zabrze. In Ruda Śląska the Company competes with a heat producer consolidating the local post-mining heat sources. In both cities, individual coal-fired heating systems (more than 50% market share in each of the cities) and local coal-fired boiler plants (respectively more than 20% market share) prevail. These areas could be supplied from a central heat distribution system, giving the Company an opportunity to expand its market share. The Company also sees its development opportunities in the projects within the Special Economic Zone and in the construction of the so-called “NOWE MIASTO” complex. The Company sees an opportunity in supplying these areas together with the local heat distributor. The total potential of this market is estimated at approx. 100 MWt. In 2010, the Company will start co-firing of biomass and, in this way, it will expand its offer by a stream of renewable energy and the so-called “green certificates”.