According to ratings agency Fitch, Polish state-owned utilities have no room to increase their debt after 2020 to finance large investments. “Beyond 2020, the four power firms will have no room to increase debt to finance large investment projects,” Fitch Ratings director Arkadiusz Wicik told the Polish Press Agency PAP.
Enea and Tauron are already close to ceilings for net debt to FFO ratios for their ratings, with PGE also like to increase it with its planned investment outlays, Wicik explained.
This might put the planned first Polish nuclear power plant at risk, as the government plans state-companies to finance the investment. “Polish utilities will be substantially leveraged already in 2021-22, so we do not see substantial financial headroom for such investment. The planned 3 GW (gigawatt) nuclear power plant could cost about PLN 50-60 billion so it is a massive amount,” Josef Pospíšil, head of Fitch EMEA Utilities & Transport told Reuters.
Poland wants to have 4.5 GW nuclear power capacity by 2040. The ministry estimates the cost of the plant at PLN 60 billion.