Digital world needs more and more energy, preferably clean energy

– The world is becoming increasingly digital, and the digital economy will need more and more energy. Meanwhile, what happened in February this year puts a big question mark over whether we will have enough energy and where we will get it from, said Bogusław Chrabota, Editor-in-Chief of “Rzeczpospolita,” in his introduction to the plenary session of the Karpacz Economic Forum “Energy for a Digital World.”

Crisis trap

Today, every country in Europe, in a situation of high geopolitical uncertainty in the supply of raw materials for the energy production and drastically rising prices for all energy carriers, is asking itself how to meet the needs of the economy in this regard.

– It seems that the energy transition must pick up its pace; there is no other choice here, commented Guillaume Pitron, a French reporter, writer, and documentary filmmaker specialising in the geopolitics of raw materials. – On the one hand, we experience the increasing digitalisation of life, growing energy consumption by consumers and business, and on the other, expectations of climate protection. Furthermore, we have to cope with the energy crisis caused by Russia. This is a trap we must get out of, although it will come at a price, he added.

Minister Grzegorz Puda, Head of the Ministry of Funds and Regional Policy, when asked about the Polish government’s strategies, including in the context of the use of EU funds, on how to get out of this trap, also noted the volatility of the situation.

Changing situation

Puda recalled that all negotiations and agreements on EU funds, both from the new perspective and from the Recovery Fund, took place in a very different situation – a situation that can be judged from today’s perspective as reasonably good. At the time, the directions for spending these funds were in line with the Union’s prospects and objectives.

As the minister pointed out, it was also at that time that arrangements were made to accelerate the green transition, reduce CO2 emissions, phase out coal, and ultimately to obtain energy only from renewable sources.

– Even then, we pointed out that many EU countries are too dependent on energy resources from Russia; that this could cause a crisis and an inability to meet these climate goals. No one listened to us. Today, we see that we were right. But the directions of European policies cannot be changed so quickly. Today, as a government, we are facing a serious challenge of how to guarantee the energy security of Poles, G. Puda argued.

The Minister noted that Poland is in a much better situation than several large EU countries, which depend on raw materials from Russia to a much greater extent than we do. Thanks to major investments, for example, we are independent of Russian gas supplies. Nonetheless, the problem affects us as well because we are not immune, for example, to rising gas prices on global markets.

In the context of the EU funds, one may wonder whether they provide adequate sources of funding necessary for the response to the current energy crisis. According to Minister Puda, unfortunately not entirely, as some of their expenditure lines have become out of date. – What lines exactly? Is independence from “dirty energy” a bad direction? Or will Moscow drive a positive change? – asked the host of the debate.

– I wouldn’t say so, but we should be able to use these funds, which were intended to steer the energy sector towards renewable energy sources, to diversify energy sources, and maintain energy security for Poles, the Minister stressed.

A mix of new and old

Grzegorz Puda added that getting permission to finance energy sources outside those specified by the EU would be a confirmation of the independent functioning of the EU institutions, a proof of Poland’s sovereignty and a test for European solidarity. – Does this solidarity mean in fact implementing a policy imposed by two countries, with the rest of the countries being treated as mere appendages? – asked the Minister rhetorically.

Renewable energy sources are an alternative to more expensive gas and coal, the participants in the plenary session “Energy for a Digital World” emphasised

Foto: Mariusz Szachowski, fototaxi.pl

The head of the Ministry of Funds reiterated plans to change Poland’s so-called “energy mix” by increasing the share of energy from renewable sources. At the same time, he pointed out that renewable sources can sometimes be unreliable. – As a result, it only seems natural that we still need to rely on stable sources, like coal, for example, G. Puda said. – In hindsight, we will look at how to make more use of renewable sources, but today we are not quite able to predict what the war and energy crisis will ultimately entail, he added.

Nuclear energy? Why not?

It is worth noting at this point that after 24 February 2022, since the outbreak of the war against Ukraine and the escalation of gas blackmail from Russia, public attitudes in Europe towards energy issues have strongly changed. There is no longer such strong pressure to move away from coal immediately, and the support for nuclear power is growing.

– After the Fukushima nuclear power plant disaster in Japan, the support for such solutions fell sharply. But today in France, such a negative attitude no longer prevails, although neither is there some euphoric support, described Guillaume Pitron. In France, we have 40 such power plants, which produce about 60% of the energy. The government is not in favour of phasing them out, nor of investing in the restoration of the capacity of those power plants that must be closed. Currently, the dominant direction in this area is the development of small nuclear reactors, the expert said. – Not everyone fully accepts this, but it seems better than coal-fired power generation, he added.

We must have more renewable energy sources

In Poland, too, support for nuclear energy is slowly growing, and the government is pursuing a “Polish nuclear power” programme. It assumes the construction of 6 to 9 GWe of installed nuclear power based on large-scale pressurised water nuclear reactors, with the first unit expected to be commissioned in 2033. The share of nuclear power in the energy mix by 2045 is projected to be around 20%.

However, on the business side, there is growing interest in so-called micro and small nuclear reactors. – In the face of the energy crisis as well as the challenges of climate change, the energy transition is inevitable, said Dawid Jackiewicz, CEO of Orlen Synthos Green Energy. – There is no other alternative than to expand renewable energy sources, and we are investing in low- and zero-emission, stable and innovative generation capacity, including hydrogen, offshore, or small reactors, he stressed.

Orlen’s ambitious plans

Two years ago, PKN Orlen announced an ambitious strategy to reach climate neutrality by 2050. And already in December 2021, they signed an agreement with Synthos Green Energy Group to establish a company tasked with preparing and commercialising small modular reactor (SMR) technology in Poland.

During the debate in Karpacz, D. Jackiewicz announced the company’s plans to have the first reactor of this type built by 2030, meaning it would be the first of its kind in Poland. And the first before the state-owned nuclear power plant, due to be built in 2033.

We should be able to use EU funds to diversify energy sources and maintain energy security for Poles, stressed Grzegorz Puda, Minister of Funds and Regional Policy

Foto: Mariusz Szachowski, fototaxi.pl

– We are leading the way in this process, which is why we are setting ambitious targets for ourselves, the CEO pointed out.

The company has already selected a technological partner (GE Hitachi Nuclear Energy), with which it works on the type BWRX-300 reactor. Such an investment is much shorter than the construction of a traditional large-scale nuclear power plant. The small reactor, with a capacity of about 300 MWe, is capable of generating the energy needed to power a city of about 150,000 people annually.

Need for regulatory changes

Such projects are also more environmentally friendly. A single modular reactor with a capacity of around 300 MWe can prevent emissions of between 0.3 and 2.0 million tonnes of carbon dioxide per year, depending on the type of fuel being replaced.

As for the location of Orlen Synthos Green Energy’s first project, it is not yet determined; however, as D. Jackiewicz said, we are almost completely free to choose. Free in the meaning that PKN Orlen has wide access to potential sites that meet all safety requirements, noted D. Jackiewicz.

When asked about the problems associated with this investment, D. Jackiewicz pointed out, among other things, the regulations on nuclear energy in Poland, which were created years ago and do not differentiate between large, traditional power plants and small ones. As a result, the requirements for investors, such as environmental impact studies, are inadequate for the scale of the project, which raises costs.

How to replenish the power deficit?

Arguably, changes in legislation would pave the way and streamline the investment process for eager companies, of which there should be no shortage. – Poland’s power deficit is estimated to be high, and it will not be met even by the largest renewable energy installations alone, neither wind farms nor solar farms, D. Jackiewicz stressed. He added that his company has plans to use the SMR technology not only for its own needs, but ultimately the energy and heat produced can be used for municipal and commercial needs.

Jon Ball, Vice President of GE Hitachi Nuclear Energy, admitted that the goal set by Orlen Synthos Green Energy is indeed ambitious, but achievable.

Innovative design

– We are currently preparing for a similar investment in Canada. It is expected to be ready in 2028. This is important from the point of view of experience, which can enable the Polish project to be implemented quite quickly, J. Ball assessed.

As he explained, the BWRX-300 reactor is currently the world’s most advanced technology on its way to becoming commercially available. A breakthrough in this area was the decision by Ontario Power Generation, one of Canada’s largest power companies, to begin work on building a power plant with this reactor in 2024. The choice of this technology by the Canadians means that it will be a FOAK (First of a Kind) project, while the Polish project is a NOAK (Next of a Kind). This will enable the use of Canadian experience in the development, preparation of the investment process, licensing, construction, and operation of a nuclear power plant of the same type in Poland.

Jon Ball noted that his company specialises in nuclear power for years, having built the first reactors in Canada, as well as in Spain and Switzerland. The works on the BWRX-300 technology has been ongoing since 2017.

– We stand by the position that the future of nuclear power is also SMR. The idea is that small reactor projects can be implemented faster, with less environmental impact and at a lower cost, said J. Ball. As he explained, “downsizing” large reactors for smaller sizes is a major challenge for scientists and engineers. But thanks to the innovations used, it was possible to significantly reduce the consumption of materials and products as, for example, it takes 50% less steel and concrete to build them. Less than 5 hectares are needed to erect a small reactor. For the sake of comparison, four such installations would fit in the National Stadium.