Paolo Coghe is president of Acousmatics.
In this note, we update our modelling of the profitability of Poland’s biggest energy company, Polska Grupa Energetyczna (PGE). Our update reflects the impact of the coronavirus pandemic on energy and foreign exchange markets, and assesses the impact of PGE’s “Strategy 2030” unveiled in October.
The context for the analysis is PGE’s failure to respond to a low-carbon transition that has been long telegraphed by European policymakers and is now in full swing. In mid-2020, coal still accounted for 86% of PGE’s total power generation, compared with 94% in mid-2011.
Our main findings were: