ESG Report of the Enea Capital Group for 2023

Innovation and contribution to Poland’s economy

  • GRI 3-3,
  • GRI 203-2

The Enea Group supplies electricity and heat and innovative services to individual and institutional Customers. We are a large employer and one of Poland’s largest taxpayers with a significant contribution to local budgets. We develop regional infrastructure and technological innovation and we support the education of future staff. Enea Group’s contribution to Poland’s economy is multi-level and multidimensional.

Considering the climate and Poland’s energy security, it is particularly important that we engage in new technologies and innovative solutions that will shape the future of the power market. Therefore, we develop new lines of business, continue our efforts in support of green and digital transition, we prepare our Employees for changes and seek opportunities for collaboration with research and higher education institutions and technology providers.

We want to innovate and create solutions that will be important for Poland’s economy. This is why we plan involvement in the following areas:

  • energy storage, including hydrogen storage,
  • low- and zero-carbon energy sources,
  • hydrogen technologies research,
  • RES innovations (including wind power, photovoltaics, agrophotovoltaics and floating PV systems, biomass, solid and liquid biofuels, biogas plants, hybrid installations),
  • SMR (small modular reactors) and MMR (micro modular reactors) projects,
  • energy islands (energy clusters),
  • smart power grids.

In 2023, we analysed innovations in agrophotovoltaics, hydro- and solar energy systems, alternative fuels, solid biofuels and circular economy projects. We are interested in electromobility, Smart Cities, Internet of Things (IoT) and Artificial Intelligence (AI) as well as automation of operating and production processes.

In June 2023, we established the Department for the Development of Innovative Projects and New Technologies of the Enea Group, a specialised organisational unit responsible for creating innovative solutions and new technologies, analysing implementation opportunities and coordinating the development operations of selected companies in the Group. We hope that the work of the Department will not only have a positive impact on our future, but also result in significant achievements that will benefit the economy as a whole and Poland’s energy transition.

Łukasz Nowakowski Director of the Department for the Development of Innovative Projects and New Technologies of the Enea Group, Enea SA

Building Poland’s energy security as one of the largest resources and energy conglomerate in the country, Enea Group since 2015 has spent about 23 billion PLN for important investments supporting the development of the Polish energy sector. Between 2024 to 2042, Enea Group plans to spend another billions of złotys. Thanks to this, it will make a significant contribution to the effective transition towards total carbon neutrality of the energy sector.

  • GRI 201-1

Direct economic value generated by the Enea Group

Direct economic value generated by the Enea Group [PLN million] 20211) 20221) 2023
i. Generated economic value:
Total revenue2) 21 743 30 555 48 886
ii. Distributed economic value:
Operating expenses3) 16 922 27 036 38 539
Payroll and Employee benefits4) 2 137 2 496 3 093
Payments to capital providers (dividends and interest)5) 177 265 402
Payments to public institutions (taxes)6) 986 575 3 918
Social investments (donations)7) 5 138) 29
RETAINED VALUE (difference between i. and ii.) 1 516 170 2 905

1) The data for 2021 and 2022 was revised; profit/loss on F/X derivatives outside hedge accounting was included.
2) Items from the consolidated statement of comprehensive income: revenue from sales and other income; other operating revenue; finance income; change in provisions on onerous contracts (revenue part); dividend income, profit on sale and liquidation of property, plant and equipment, profit on F/X derivatives outside hedge accounting
3) Items from the consolidated statement of comprehensive income: amortisation and depreciation; consumption of materials and supplies and value of goods sold; purchase of energy and gas for subsequent sale; transmission services; other third-party services; change in provisions on onerous contracts (expense part); loss on sale and liquidation of property, plant and equipment, loss on F/X derivatives outside hedge accounting, other operating expenses; other finance costs.
4) Items from the consolidated statement of comprehensive income: Employee benefit costs.
5) Items from the consolidated financial statements: dividends paid; cost of interest on loans and borrowings; cost of interest on bonds; cost of interest on lease liabilities and head lease; cost of interest on IRS; other interest.
6) Items from the consolidated statement of comprehensive income: taxes and charges; current tax.
7) Total value of cash and in-kind donated by Group companies: Enea Foundation, “Solidarni Górnicy” Foundation or directly to beneficiaries.
8) 2022 data adjusted to account for the data from the Enea Foundation’s 2022 financial statements published on 31 March 2023.

In 2023, the Enea Group earned over PLN 48 billion in revenue. Our Group’s EBITDA was nearly PLN 6.3 billion and we spent nearly PLN 4 billion on investment, mainly to enhance the efficiency and reliability of the grid. We increase our renewable energy generation capacity and we invest in environmental protection. The Group is one of Poland’s major energy companies and one of the pillars of the country’s energy security. We intend to continue our measures to increase the Enea Group’s value through sustainable transition.

Marcin Budzyński Director of the Group’s Department for Management Control, Enea SA
  • GRI 201-4

Financial assistance received from government

Total cash value of the financial assistance received by the Enea Group from the government1) [PLN million] 20212) 20222),3) 2023
i. Tax relief and tax credits 1.6 2.6 3.4
ii. Subsidies 0 0 0
iii. Grants (e.g. investment grants, research and development grants) 0.1 7.3 8.0
iv. Awards 0 0 0
v. Royalty holidays 0 0 0
vi. Financial assistance from public lending institutions, e.g. export credit programmes 0.1 0.2 0.4
vii. Financial incentives 0 0 0
viii. Other financial benefits received or receivable from government 1 342.8 1 291.2 1 361.1
TOTAL: 1 344.7 1 301.3 1 372.9

1) The main sources of the financial assistance received from the government are:
1. revenue from the Capacity Market,
2. support in the form of certificates of origin for electricity,
3. free CO₂ emission allowances.
2) The data for 2021 and 2022 has been revised: the difference in Other financial benefits received or receivable from government results from recognising free CO₂ emission allowances for the year. The allocation has been recognised at the market value as at the date of entry in the register.
3) The data for 2022 has been revised: the difference in Tax relief and credits occurred at year end because one of the companies did not deduct subsidies. Also, as at the date of declaration, one company did not know the exact amount of R&D credit.

INTERNAL R&D&I INDICATOR

In 2023, Enea Operator successfully completed Horizon 2020 DRES2Market project to seek ways to overcome the barriers to the development of distributed energy generation from renewable sources, so as to enable energy balancing and storage. The results were approved by the project commissioner and will be used when creating new EU regulations.

Enea Operator also carried out eNeuron, a research and development project with the main goal to develop innovative tools for optimizing the design and operation of local energy systems integrating distributed energy resources and multiple energy carriers.  The project involved installation of an energy storage facility, which is the sixth such facility to be operated by Enea Operator. The effects of eNeuron are set to provide benefits to potential entities interested in implementing such systems, specifically distribution network operators.

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