ENS consists of a cogeneration plant with a nominal electrical capacity of 116 MW and nominal thermal capacity of 70 MW located in the city of Nowa Sarzyna, Poland. In an effort to introduce a competitive market in compliance with EU legislation, the Polish parliament passed a law on voluntary termination of power purchase agreements upon compensation payable to generators, which came into force on August 4, 2007. Under the law, compensation is based upon capital expenditures incurred before May 1, 2004 which could not be recovered from future sales in the free market, and will be paid in quarterly installments. ENS, with its lenders' consent, signed a Termination Agreement on December 28, 2007 with Polskie Sieci Elektroenergetyczne S.A., or PSE, to terminate their Power Delivery Agreement, with termination effective as of April 1, 2008. This allows ENS to participate in the compensation system provided by law. In March 2008, ENS executed a new Power Sales Agreement with Mercuria Energy Trading Sp. z.o.o. and new Transmission Agreements with the grid operator and the distribution company. In addition, ENS sells 90% of its steam under a long-term Thermal Energy Supply Agreement to Zaklady Chemiczne Organika-Sarzyna S.A., or Organika, under a 20-year agreement which expires in 2020. Capacity payments under these agreements are expressed and paid in Polish zlotys, but indexed to the U.S. dollar. Historically, most of ENS's revenue has been derived from the Power Delivery Agreement, with the remaining revenues coming from the Thermal Energy Supply Agreement. Polskie Górnictwo Naftowe i Gazownictwo supplies the plant with natural gas under a 20-year fuel supply agreement. The fuel supply agreement contains minimum and maximum volume obligations applicable to both parties and "take or pay" provisions. Payments under this contract are made in Polish zlotys. Periodic changes in the gas tariff are passed through directly into the electrical and thermal energy (steam) prices. Contact ENS: ENS Elektrocieplownia Nowa Sarzyna Sp. z o.o.
ul. ks. J. Popieluszki 2
37-310 Nowa Sarzyna
Poland
+48-17-24-05-000 Last update: August 2010 | |
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