Piotr Glen, director of the Center for Sustainable Development at the Warsaw School of Economics, leading the discussion “On the way to energy security: from tradition to innovation in the use of energy sources” at the beginning outlined the geopolitical and economic situation of Poland. He left no doubt that energy security is today an absolute synonym of national security, the leading theme of this year’s Welconomy. Piotr Glen asked the participants what energy sources Poland should focus on to survive the coming decades. He also considered whether the dynamic development of renewable energy and storage technologies based on internal sources is an element of building security. What should the proportion between traditional and renewable sources be in the Polish energy mix in the next 10-15 years?
Poland’s energy security: renewable energy, coal or nuclear? / Press materials
Development of renewable energy and conventional basis
Dr. Daniel Kiewra, chief expert on climate and energy at the Responsible Business Forum, pointed out the problems of the current system. He noted that The development of renewable sources alone will not be enough without massive investments in transmission networks.
– In 2023, 1.5 terawatt-hours from renewable energy went to waste because it was not accepted by the system due to the limitations of this system and its design – he noted, adding that from the point of view of security, a certain ballast is the fact that both gas and nuclear technology, or even uranium, mean the need to rely on imports.
– Therefore, coal should remain as an element balancing the energy system in the long term – he said.
Dr. Robert Perkowski, FMCG industry expert, former vice-president of PGNiG and member of the management board of ORLEN SA, said: security can only be ensured by a system based on conventional sources. He pointed out that on winter evenings it is often 100 percent. Polish energy comes from coal and gas. He also criticized the naivety in the perception of current storage technologies, giving the example of the largest battery storage facility in California (approx. 3 TWh), which, given the peak demand in Warsaw, estimated at 1.5 TWh per hour in critical situations, would be sufficient for only two hours of operation of the capital. He also emphasized that the true guarantor of stability is independence from external suppliers.However, this involves difficulties and huge costs of building our own gas storage facilities in Poland.
Ph.D. Robert Gwiazdowski, prof. Lazarski University, expert at the Center. Adam Smith, in turn, recalled the classic definition of energy security as ensuring supplies “at an economically justified price”. He pointed out that Due to the instability of renewable energy sources (dependence on wind and solar) and the costs of the ETS system, the hope for the economy in the next dozen or so years lies primarily in investments in high-temperature SMR reactors and large-scale nuclear energy.
Capital is necessary for the energy transformation
During the discussion, Piotr Glen pointed out that every strategy requires capital, which is why the financial sector plays a huge role in building security. He also mentioned the role of Bank Gospodarstwa Krajowego in the entire process. Joanna Nowak from BGK emphasized that the bank takes the transformation very seriously, having enormous funds at its disposal, including approximately PLN 90 billion in KPO earmarked for this purpose.
– We support investments that primarily eliminate the risk of a production gap, stabilize the market and, as a result, reduce energy costs for consumers – she enumerated, adding that BGK has already signed contracts for PLN 75 billion, including: for the development of offshore wind farms.
BGK also supports the green transformation and finances the development of gas infrastructure, an example of which is a loan of PLN 2.2 billion granted for the construction of the transmission network (land part of the FSRU Program, approx. 250 km connecting Gdańsk and Gustorzyn).
Referring to nuclear energy, Joanna Nowak noted that the construction of a nuclear power plant in Poland is a project with enormous development potential.
Social costs of transformation
In the last part of the panel, Piotr Glen drew attention to the human dimension of change. To this, how to conduct the green transformation in a sustainable way so as not to weaken the competitiveness of the Polish economy on the one hand and, on the other hand, so that it is socially accepted.
Daniel Kiewra noticed that Poland lacks iron consistency because strategies change with the political winds. He also cited research showing that miners themselves often do not want to work in mines and are looking for a future in construction, automotive or conventional energy.
As the discussion showed, social issues still remain challenges in the process of Poland’s energy transformation.
