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Poland's energy transition is progressing and 2023 was a year of real records

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Although coal remains the main source of electricity generation, its share in the mix has fallen to an all-time low of 60.5 per cent - down 10pc from a year earlier, the Energy Forum report highlights.

Production from RES reached 27% for the first time. At the same time, power generation from natural gas increased - by more than 40%. This is the result of falling fuel prices and the flexibility of gas generation. Wholesale energy prices in Poland remain very high compared to other EU countries, and the economy's dependence on imported fossil fuels is growing rapidly. In the latest, seventh edition of the Energy Transformation in Poland report, the Energy Forum presents the state of the game regarding the transition and a broader view of the overall process.

The pressure for change in the energy sector, on which the development of Polish GDP will depend, is growing. In recent years, most of the changes have been on the generation side - the role of coal is declining, renewables are increasing - although their development is not the result of a conscious plan by the state to invest in RES, but rather the result of the market and the lifting of blockages. However, the Polish electricity sector is still the most emission-intensive in the entire EU, and we are the 3rd most emission-intensive country in the world. The significant level of emissions translates into high energy prices and, in industry, a loss of competitiveness due to the high carbon footprint of goods produced in Poland. If nothing changes, the Polish economy will be exposed to a decline in investment in the coming years.

However, while progressive, but still insufficient, changes are beginning to be seen in the electricity sector, they are almost absent in other sectors such as heating and industry. This is why it is becoming so important to look at energy use across the entire economy: comprehensively - and not just by individual industries. The data for 2023 compiled in the Energy Forum's report clearly shows that the transformation in Poland is progressing punctually and is more the result of market factors than conscious coordination.

In the 20 years of our presence in the EU, the consumption of energy and fuels, especially transport fuels, in the Polish economy has been steadily increasing.

 

The full report is available on the Energy Forum website.