Added value chain and business model

The TAURON Group is a fully integrated energy group made up of autonomous commercial law companies. The Group is led by TAURON Polska Energia S.A. (with its registered office in Katowice) as the parent entity (hereinafter called alternately the Company). TAURON is one of Poland’s largest electric utilities.

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The Group’s business model coincides with the value chain: from mining and procuring thermal fuel, through generation, electricity and heat trading and distribution, up to the supply to the final consumers. In response to the current and future challenges, the value chain has been expanded by adding the innovations ecosystem and the so-called new businesses that are set up at the interface between the innovations ecosystem and the core operations segments (lines of business). They also cover the gradual transition from the operations linear cycle to the closed cycle (circle) operations, which contributes to implementation of the circular economy assumptions.

The figure presents lines of business as part of the value chain in terms of their contribution to the TAURON Group’s EBITDA’s.

EBITDA’s share in the TAURON Group’s value chain in 2019.

The business model is an element of the implementation of the Group’s Strategy and through the structuring of the operations, organizing them into logical, interworking business processes, allows for optimizing the building of the value of the TAURON Group as a whole, taking advantage of the economies of scale of the business conducted and the synergies resulting from the collaboration of the individual links of the value chain.

TAURON is Poland’s largest electricity distributor. Using its more than 235 thousand km long distribution grids, it delivers electricity to more than 5.6 million consumers, in the area that covers approx. 57 thousand km2, which constitutes more than 18 percent of Poland’s territory. In terms of electricity supply to final consumers, TAURON is number two, with its supply volume of approximately 29.6 TWh per annum. On the other hand, in terms of production volume, the Group is the third largest electricity generator on the Polish market, with the annual net production of 12.7 TWh (13.9 TWh in gross output) and installed capacity of 5.2 GW. To produce electricity the Group’s conventional installations are using hard coal and biomass, renewable energy source units are utilizing the energy of wind and the kinetic energy of falling water. The TAURON Group is managing 9 wind power plants and 34 hydroelectric power plants, and it is operating 1180 km of district heating networks. The TAURON Group’s generation units are generating approx. 10 percent of Poland’s electricity output.

TAURON Group’s Business Model assumptions

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The TAURON Group’s business operations are conducted based on seven Lines of Business, defined in accordance with the Group’s value chain links: Mining, Generation, Heat, Renewable Energy Sources (RES), Trading, Distribution and Supply.

Additionally, there are other subsidiaries operating as part of the Group, whose operations are focused on providing support services for the Group, such as, for example, customer service, security services, accounting and human resources services and IT services.

TAURON Group’s business model in 2019

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It comprises mainly hard coal mining, enrichment and sales to the utility scale power plants and individual customers. Apart from hard coal mining, the segment’s other activities also include mining operations involving open pit extraction of limestone, as well as its processing and sales within the Group and outside the Group.

The operations in this Line of Business are conducted by TAURON Wydobycie S.A., Kopalnia Wapienia ”Czatkowice” sp. z o.o. and Spółka Usług Górniczych sp. z o.o.

Hard coal mining

The current structure of TAURON Wydobycie S.A. is based on the model composed of the Center (Centrum), with its seat in Jaworzno, and three production plants (coal mines): Zakład Górniczy Sobieski (Sobieski Coal Mine) in Jaworzno, Zakład Górniczy Janina (Janina Coal Mine) in Libiąż and Zakład Górniczy Brzeszcze (Brzeszcze Coal Mine) in Brzeszcze. The Center’s operations include, among other, shared functions management, planning and sales. The production facilities are mainly dealing with hard coal mining and enrichment. This Line of Business also includes a subsidiary that provides mining works services – Spółka Usług Górniczych sp. z o.o.

Limestone extraction

Kopalnia Wapienia ”Czatkowice” sp. z o.o. is an open pit mine, extracting high quality carbonate limestone deposits, located at 28 km away from Cracow, in the Krzeszowice municipality.

The limestone from the Czatkowice deposit is used in the power generation, steel making, construction, lime, cement, sugar, road building industries, as well as in agriculture.


It comprises electricity generation using conventional sources (also through the biomass burning process). The segment’s operations are conducted by TAURON Wytwarzanie S.A. and Nowe Jaworzno Grupa TAURON sp. z o.o., the company responsible for the construction and operation of the new power generation unit in Jaworzno with the capacity of 910 MW. Electricity generation by conventional units is carried out by five hard coal-fired power plants with the total capacity of approx. 4.3 GWe and 1.2 GWt. These power plants are also equipped with two biomass fired units. The power plants are located in the following towns: Łaziska Górne, Będzin, Trzebinia, Stalowa Wola and Jaworzno. This Line of Business also includes technical maintenance (support) services provided by TAURON Serwis sp. z o.o.


It comprises heat and electricity generation, distribution and supply, using co-generation sources. Heat generation is carried out by three combined heat and power plants, with the total capacity of approx. 0.3 GWe and 1.2 GWt, located in Katowice, Tychy and Bielsko-Biała as well as local boiler houses. The generating units are using hard coal and biomass for their production. The heat operations are conducted by TAURON Ciepło sp. z o.o. and SCE Jaworzno III sp. z o.o., which are, in total, operating approx. 1,180 km of the distribution heating networks on the territory of, among others, Bielsko-Biała, Czechowice-Dziedzice, Katowice, Dąbrowa Górnicza, Sosnowiec, Chorzów, Siemianowice Śląskie, Jaworzno, Zawiercie and Mysłowice, with 857 km being TAURON Ciepło’s own networks, and 121 km being SCE Jaworzno III’s networks.

Renewable Energy Sources

It comprises electricity generation using renewable energy sources, except for biomass burning. This line of business is managing 34 hydroelectric power plants with the total capacity of 133 MW, located primarily in the south of Poland, and 9 wind based power plants with the total capacity of 381 MW, located primarily in the north of Poland. The segment’s operations are conducted by TAURON Ekoenergia sp. z o.o., TAURON Ekoserwis sp. z o.o. and the group of special purpose vehicles set up to manage RES assets, among others the five wind farms acquired from the in.ventus group in September 2019.


It comprises electricity distribution using the distribution grid located in the south of Poland. TAURON distributes electricity on the territory of the following regions: TAURON distributes electricity on the territory of the following regions: Małopolska, Lower Silesia, Opole and Silesia, and partly also Świętokrzyskie, Podkarpackie, Łódzkie, Wielkopolska and Lubuskie.

The operations are conducted by TAURON Dystrybucja S.A. The operational functions are performed by 11 branches located in: Będzin, Bielsko-Biała, Cracow, Częstochowa, Gliwice, Jelenia Góra, Legnica, Opole, Tarnów, Wałbrzych and Wrocław. The operations of TAURON Dystrybucja are supported by the TAURON Dystrybucja Pomiary sp. z o.o.


It comprises electricity wholesale trading, as well as trading and management of CO2 emission allowances and property rights arising from certificates of origin of electricity, as well as fuels.

Such operations are conducted by TAURON Polska Energia S.A. and TAURON Czech Energy s.r.o. The Trading Line of Business also includes the procurement of biomass, as well as the utilization of mining and burning by-products carried out by Bioeko Grupa TAURON sp. z o.o.


It comprises the supply to the final consumers of electricity and natural gas, as well as related products. The operations are conducted by TAURON Sprzedaż sp. z o.o. and TAURON Sprzedaż GZE sp. z o.o. The supply operations are conducted nationwide and, on a smaller scale, on the Czech and Slovak markets. This Line of Business also includes services related to street lighting, as well as energy efficiency and smart technologies services carried out primarily by TAURON Dystrybucja Serwis sp. z o.o., managing approx. 750 thousand street lamps.

Other operations

It is a separate line of business called Shared Services Center. It includes such services, provided for the TAURON Group’s subsidiaries as, among others, customer service, accounting and human resources services, as well as IT services, carried out by TAURON Obsługa Klienta sp. z o.o., managing insurance policies for all of the Group’s subsidiaries – by TAURON Ubezpieczenia sp. z o.o., and providing security and order keeping services – by Wsparcie Grupa TAURON sp. z o.o. subsidiary. The goal of such a division of competences is to relieve the Lines of Business from the obligation to carry out the processes that are not directly associated with their core business operations (non-core operations related processes), and also to reduce the costs of performing such processes thanks to the economies of scale and the improvement of operational efficiency.


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