Tauron expects CAPEX in distribution to increase in '25, RES CAPEX dependent on acquisitions

"We have declared that expenditures in distribution will grow dynamically, and we stand by that. We want to do this in a sustainable way. We don't want to create too much of an inflationary impulse," said Tauron's deputy CEO Michal Orlowski, when asked about the group's planned CAPEX this year.

"We assume that the scaling that can be sustainable is growth of a dozen to twenty-something percent per year, and we plan to realise such growth in distribution this year," he added.

According to the deputy CEO, Tauron group may see higher year-on-year expenditures in the conventional generation segment.

"The conventional segment has been very much optimised in 2024. (...) We assume that the level of outlays related to repetitive tasks, i.e. current overhauls, will decrease, and one-off overhaul events on the largest units will make it slightly higher overall than in 2024," Orlowski said.

"In the RES segment, we are executing existing projects according to schedules, but we also have a certain pool of spending that can be used for acquisitions and acquiring new projects, and here spending will depend on the availability of market opportunities," he added.

The deputy CEO pointed out that the wind energy market in Poland is "relatively shallow" and that there are not many projects to acquire.

"(...) we want to execute projects in a way that will build shareholder value. Depending on the availability of commercially viable projects, expenditures may increase or may be kept at a similar or lower level," Orlowski explained.

In the Tauron group's strategy, published in December 2024, the group assumes PLN 100 billion (EUR 23.9 bln) CAPEX between 2024 and 2035, with 60 percent of the expenditure on the development and modernisation of the distribution network.

pel/ ao/