The energy industry is committed to accelerating decarbonization

Luc Williams

The share of renewable energy sources in the Polish energy mix is ​​gradually growing. However, coal still plays a decisive role. Its share, looking at data for 2023, still reaches over 60%. That’s 9 percent. less than in 2022. The implementation of the goals set by the European Union to achieve zero emissions by 2050 therefore requires more dynamism of activities, as well as a focus on nuclear, hydrogen and synthetic fuels, which are increasingly in demand.

Meanwhile, new investments require huge financial outlays, obtaining funds is a challenge for energy companies that still rely on coal – noted participants of the inaugural session of the Energy Days conference.

Other problems include the exceptionally long process of issuing administrative approvals, problems with connecting new renewable energy units to the grid and legislation that has not been conducive to their development in recent years – an example was the difficult development of onshore wind power. In addition, there are unpredictable events, such as the September flood in Poland, which requires additional involvement not only of financial resources, but also of employees in the reconstruction of the destroyed infrastructure. Last week, TAURON connected the last person affected by the flood to the network. There were 108,000 of them in total. Now, work is starting to rebuild the infrastructure and modernize it to make it more resistant to further possible events in the future.

There is a plan, there are actions

However, energy market participants announce that they plan to accelerate work on decarbonization of the Polish energy sector.


Grzegorz Lot, president of the management board of TAURON Polska Energia / Press materials


– We focus on green energy. We will communicate how much in our new development strategy, which we will present at the end of this year – said Grzegorz Lot, president of the management board of TAURON Polska Energia, during the debate. He added that the 910 MW coal unit in Jaworzno is currently operating at its technical minimum. Its production potential is much greater.

– There are even smaller coal units in the group – 200 MW, which will be gradually decommissioned over time. In most of them, contracts under the capacity market, i.e. the mechanism that is supposed to balance electricity generation in Poland with demand, are valid until the end of next year. This means that after this time, their operation will not be economically justified – noted Grzegorz Lot and pointed out that several dozen blocks from all over Poland may participate in the auction for 2026 as part of the capacity market. Units that require expensive renovations will be systematically shut down.

According to the company’s reports, in the first half of the year it produced 17% more electricity from coal-fired power plants. less electricity than a year ago and by 10 percent. less heat. During the panel, the president of TAURON Polska Energia also reminded that electricity from coal is produced only when it cannot be obtained from renewable energy sources. The company also buys it for its clients on the stock exchange.

Grzegorz Lot emphasized that the goal of the TAURON group is to achieve climate neutrality by 2050 at the latest, which coincides with the policy of the European Union. However, this requires investments in renewable energy sources and nuclear energy. But also greater access to funds. Meanwhile, banks are avoiding lending to the coal industry. Therefore, he said, separating coal assets from the group’s structures could make it easier to raise funds. TAURON Polska Energia expects a decision on this matter by the end of 2024.

– Meanwhile, not only in Poland, but also in Europe, there will be no industrial development if there is no green, flexible, safe and cheap energy – pointed out Grzegorz Lot.

TAURON wants to provide its customers with 100 percent energy from renewable sources, from nuclear sources or from those that are considered zero-emission, already in 2040. The President also mentioned the company’s new offer, in which individual customers receive a guarantee of a fixed electricity price for nine years of the contract, and companies for the period from five to even ten years. The energy contracted in this way comes exclusively from Tauron’s renewable sources, and each customer will receive a certificate confirming its origin. The total installed renewable energy capacity in the company is almost 700 MW, of which 417 MW is in wind farms, 133 MW in hydro, 56 MW in photovoltaic power plants and 90 MW in biomass units. Currently, the group is building wind farms with a total capacity of 164.9 MW, of which 121.5 MW will be put into operation in 2024, and photovoltaic farms with a capacity of 199 MW, of which 55 MW will be put into operation in the next few months.

Necessary conditions

Olga Sypuła, director of European Energy Polska, also said that without decarbonization of the energy sector there will be no zero-emission economy.

– Otherwise, our economy will collapse because we will not export anything abroad. We will fall behind Europe with high prices for energy and the end products that are produced through it. That is why we need to “green” our energy mix as quickly as possible, she emphasized.

The discussion participants noted that there is a lot of talk today about the energy transformation, but we cannot forget that this process should also cover – and as soon as possible – the heating and transport sectors. Therefore, there is a need to develop the use of synthetic fuels and hydrogen, which, however, is not possible without the green energy sector.

– Otherwise, we will wake up in a situation where our transport and industry will not meet global standards – said Artur Osuchowski, member of the management board for energy and energy transformation of ORLEN SA.

During the discussion, Grzegorz Lot also referred to the issue of connecting new renewable energy sources to the grid, pointing out that there is still a pathology on the market due to the existence of the so-called zombie projects, i.e. those that are not implemented despite receiving connection conditions. As he said, it’s time to end it, because it is clearly blocking power.

He also noted that today it is difficult to predict what the Polish energy mix will look like in 2050.

– It is important that it gives Poland competitiveness compared to other countries. Without a good mix, we will also have climate problems. That is why our plan is a customer-friendly power grid, providing green energy with a customer-friendly price, he noted.

He also drew attention to the need to build energy storage facilities in the country, thanks to which the supply of energy from renewable sources will become more stable.

However, the panelists pointed to problems with implementing this type of investment.

– We have refusals to connect the warehouses that we want to build throughout Poland to the network – said Olga Sypuła.

Transitional goals

During the discussion, participants also referred to the new transitional goals proposed by the European Commission for the energy sector in achieving zero emissions. They are to be more radical than the previous ones. Therefore, the question arises whether it will be necessary to revise the strategies adopted by producers. The discussion participants admitted that tightening the requirements and penalties will be of little use if the former are not complied with.

– Customers are already demanding access to green, safe and cheap energy. This occurs regardless of what is happening in the regulatory space. We, in turn, must do everything to meet their expectations and provide them with access to the energy they expect. It is important that we can continue to operate on the market, said Grzegorz Lot, emphasizing that today it is primarily the pressure from customers that determines the directions of strategy, not regulations.

– All large companies are export-oriented. However, the development of foreign sales will not be possible without access to green energy. Contractors require supplies of products manufactured with respect for the environment. Not only cement, but also steel will be green. Otherwise, exporters will not be able to sell their products on world markets – he pointed out and added that households also expected access to green energy. Not only the price is important to them, but also the source of production.

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About LUC WILLIAMS

Luc's expertise lies in assisting students from a myriad of disciplines to refine and enhance their thesis work with clarity and impact. His methodical approach and the knack for simplifying complex information make him an invaluable ally for any thesis writer.