Bloomberg, citing Polish daily Puls Biznesu, informed about possibility that CEZ may build a power plan in Poland for more than EUR 1bn. Chairman of Polish coal miner Budryk SA confirmed that CEZ started searching for coal supplies for 2014-2054 period. CEZ representatives refused to comment on their investment plans there.
Our view:
We see this as a good step from CEZ side as privatization of Polish energy sector has been in a limbo for some time. As Polish market still remains the main expansion target for CEZ and company has some EUR 6bn for its expansion plans in CEE&SEE region available, this is one of the solution to further penetrate there. Note that company already operates two power plants – Echo and Skawina in the south of Poland.