PGE targets 65% local components in investments of nearly 210 billion zlotys through 2035
Key Facts
Polish energy group PGE said at its Supplier Day in Warsaw on November 12 that it aims to raise the share of local components to at least 65% by 2035, alongside investments of nearly 210 billion zlotys over the period. The target links its broad spending program with the role of Polish companies in supplying equipment and carrying out projects. The group said the target applies to local components and is not a figure for spending already completed. The approach gives suppliers, contractors and technology partners an opportunity to prepare for the group’s future needs. About 500 people from these groups and other organizations attended the event, according to PGE.
PGE Chief Executive Dariusz Lubera said the group had decided to publish its investment and procurement plans well in advance, giving Polish companies time to prepare for future needs. The advance announcement puts local procurement at the heart of how the plan will be implemented, allowing suppliers to track projects and plan their participation. The statement did not specify the share of contracts that would go to particular companies, but linked the local-components target with giving them time to prepare. The message came at an event bringing together suppliers, contractors and technology partners. The 65% figure is a company target for the period through 2035.
PGE announced its updated strategy on October 20, 2026, weeks before the supplier event, setting out three pillars: growth through the electrification of the economy, transformation of its asset portfolio, and greater investment and operational efficiency. The plan targets investments of nearly 210 billion zlotys between 2025 and 2035, with cumulative EBITDA of about 209 billion zlotys over the period. The forecast includes EBITDA of nearly 15 billion zlotys in 2030 and more than 30 billion in 2035. The focus on local content on November 12 therefore formed part of a broader strategy announced earlier, rather than a new strategy announcement that day. The company also links investment growth with changes to its asset mix and improved operational efficiency.
Planned spending is divided among about 80 billion zlotys for offshore and onshore wind and energy storage, 70 billion for grids and distribution, and 48 billion for the transition, including gas, heating and the study of small modular reactor options. The group has allocated 6 billion zlotys to energy solutions for customers and 5 billion to maintaining existing coal-fired power. The figures put grids and renewables at the top of the spending items, alongside funding for the transition and continued maintenance of coal assets. The projects could create opportunities for component suppliers and contractors, in line with PGE’s effort to increase local content. These amounts remain allocations in a forward-looking plan through 2035.
PGE aims to connect 11 gigawatts of new renewable energy sources by 2035 and connect new customers with 12 gigawatts of capacity to its distribution network, while increasing distributed electricity to 48 terawatt-hours. These targets show the scale of the company’s planned expansion in generation and grid connections over the coming years. The strategy also says the group aims to achieve net-zero emissions from generation by 2050. On offshore wind, PGE Vice President Piotr Dzióbkałkowski said the group is building its expertise through equal partnerships, with the aim of later gaining the ability to deliver and operate new projects in the Baltic Sea itself. Vice President Katarzyna Rosenfeld said the group wants to contribute to the electrification of the Polish economy by supporting new industries, digital services, data infrastructure, electric mobility and modern heating.
Management links a successful transition to the viability of projects as well as growth in generating capacity. Lubera said, "Success is determined not only by the scale of investments or growth in generating capacity, but also by their profitability," also pointing to the importance of making the most of renewable energy and adapting to changing market and geopolitical conditions. The plan expects EBITDA to exceed 30 billion zlotys in 2035, compared with about 13 billion in 2025, according to the company. PGE also targets a total result of 19 billion zlotys from its efficiency improvement program, with cumulative EBITDA targeted at 209 billion zlotys during 2025–2035. The strategy says more than 70% of capital expenditure will be monetized through regulatory mechanisms such as tariffs and contracts for difference, with a targeted internal rate of return of between 7% and 9% for capacity-market and energy investments and above 9% for other investments.