Dispatch from Poland | January '25
***Our weekly Dispatches provide an overview of the most relevant recent and upcoming developments for the shift to climate neutrality in selected European countries, from policy and diplomacy to society and industry. For a bird's-eye view of the country's climate-friendly transition, read the respective 'Guide to'.***
Stories to watch in the weeks ahead
Stories to watch in the weeks ahead
- Polish presidency up and running – Poland took over the six-months presidency of the EU Council on 1 January 2025. Its priorities are security, competitiveness and support for a just energy transition. The presidency is able to set an agenda for the bloc’s debates, but has no legislative powers. Poland will pursue a discussion on technology neutrality and prioritise lowering electricity costs for industry.
- Wind farm referendum with pressure from the far right – On 9 February, citizens of the Polish town Głubczyce will vote in a referendum whether a planned new onshore windfarm project can go forward. There are multiple companies interested in building wind power near Głubczyce, which is located near the border to the Czech Republic. The far-right party Konfederacja Nowa Nadzieja is actively lobbying against these investments. The party claims that renewable energy is too expensive and does not sufficiently stimulate the domestic economy. Konfederacja is pushing for coal power as an alternative.
- Regulation of new gas-fired power plants support in play – Like in Germany, there is a discussion of a possible new gas-fired electricity generation support scheme. According to Polish electricity network operator PSE, the electricity capacity gap in Poland is to reach 12 GW in 2035 if there is no sufficient investment in new non-intermittent installations. One of the ways to provide such capacity is to build new gas-fired power plants, but these backup plants require a support scheme, as they will likely only run during certain moments of peak demand. Such capacity could be decarbonised with the use of hydrogen in future. The biggest Polish company Orlen is already planning to increase gas capacity from 1.7 to 4 GW in 2030.
The latest from Poland – last month in recap
The latest from Poland – last month in recap
- State funds for a nuclear power plant– The government in Warsaw signed a law on state budget support for a nuclear power plant in Lubiatowo-Kopalino, near the Baltic Sea. The plan is to build three reactors, with the first one set to open by 2035. The government is providing 60,2 billion złoty (over 14 billion euros) of state support to the investor, Polskie Elektrownie Jądrowe. The state-owned company is set to become Poland’s nuclear power plant operator.
- Extending capacity market? – Capacity market access for Polish power plants that are not meeting the emission limit of 550 kg CO2/MWh (in practice: coal-fired power plants) might be prolonged well beyond 2028. The country has already been granted a derogation from EU rules for the capacity market as part of last year’s EU Electricity Market Design reform to sustain the generation capacity needed to guarantee security of supply until 2028. Poland is discussing the possibility of prolonging the capacity market for heavy emitting units until 2030 and beyond. Polish power companies, united in the umbrella organisation Towarzystwo Gospodarcze Polskie Elektrownie (TGPE), argue for a capacity market with auctions until 2040, to finance around 13 GW of new power plants they say are needed until 2045.
- Poland’s energy prices union – The Polish EU Council presidency argues for policies to lower energy prices. The International Monetary Fund (IMF) prepared a report for the Polish government, recommending the integration of the energy market. The IMF states that Europe needs an integrated and robust electricity system for renewables to work well. Better interconnectivity between the markets is supposed to make the allocation of capacity more effective but requires investment in electricity network expansion. An integrated power market can balance supply and demand better across countries and is expected to enable savings of up to 40 billion euros until 2030.
Wojciech’s picks – highlights from upcoming events and top reads
Wojciech’s picks – highlights from upcoming events and top reads
- The Polish electricity network is ready for 90 GW of renewables – According to think tank Forum Energii’s analysis Poland’s electricity network is ready to accommodate up to 90 GW of renewable energy capacity by 2040. Important recommendations include the resolute integration of renewables with energy storage technology.
- A tool kit for fighting disinformation – One of the priorities of Polish presidency of the EU Council is countering climate disinformation. In March 2024, the European Commission adopted the Communication on managing climate risks in which it committed to combating climate disinformation. The Climate Pact Toolkit is a helpful resource about how to talk to people about climate action and fight disinformation. The Polish presidency is to propose new tools during its term.
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