Company applies for CfD for 14 units across three locations in European country
Orlen Synthos Green Energy (OSGE) has asked Poland’s energy ministry to begin work on a state support scheme for the construction of a fleet of GE Vernova Hitachi BWRX-300 small modular reactors (SMRs) in the European country.
The company said it had applied for a contract for difference (CfD) for 14 units across three locations – Wloclawek, in central Poland, Stawy Monowskie, in the south of the country, and Stalowa Wola, southeastern Poland.
According to OSGE, a joint venture between the private industrial group Synthos Green Energy (SGE) and Poland’s state-controlled energy giant Orlen, the first BWRX-300 unit will be commissioned in 2032 in Wloclawek.
OSGE said the government will notify the European Commission of the plans for state support.
The units listed in the application are the first phase of a broader OSGE SMR deployment programme, which ultimately includes the construction of 26 BWRX-300 units.
“The contract for difference for 14 units will enable us to build a fleet of BWRX-300 reactors in Poland,” said OSGE chief executive officer Rafał Kasprów.
“Thanks to economies of scale, standardisation and modularisation, we will reduce unit cost and, as a result, create a cost-attractive electricity generation model for both individual and industrial customers.
“At the same time, the approval of the contract for difference will be a significant step toward building a robust SMR supply chain in Poland,” he added.
A CfD is a financial mechanism that allows an energy generator and the government to agree on a fixed “strike price” for their electricity. If the wholesale market price of electricity falls below the strike price, the government pays the generator the difference, guaranteeing their revenue. If the wholesale price goes above the strike price, the generator pays the excess back to the government. This protects both developers from market volatility and consumers from high bills.
The 3,400-MW Hinkley Point C nuclear power station, under construction in the UK, is funded by a CfD with a strike price of £92.50/MWh (€107, $122).
The 300-MW BWRX-300 is based on an existing boiling water reactor design – the ESBWR – that is licensed in the US.
Poland is building three Westinghouse-supplied large-scale reactors in Pomerania in the north of the country as it aims to phase out its heavy reliance on coal, reduce carbon emissions and guarantee long-term energy independence. Coal accounts for about half of Poland’s electricity generation, which is by far the highest proportion in the European Union.
The government recently released an updated nuclear power policy which says it is aiming to choose a partner and technology for a second nuclear station scheduled for 2027.
