Poland is one of seven countries that intend to continue using coal through 2030 – and the one that produces more coal than any other European state. According to a report by Ember, the nation will be responsible for 45% of the EU’s coal power capacity by the end of the decade.
In 2019, a whopping 74% of its electricity generation was coal-fired. During the first half of this year, Poland generated as much electricity from coal as the other EU member states combined (excluding Germany). Furthermore, it is the only EU state to refuse to pledge climate neutrality by 2050.
But now it has updated its energy strategy by 2040. The climate ministry said Poland plans to accelerate the coal phase-out by investing in nuclear and renewable energy. One hundred fifty billion zlotys (€33.7 billion) have been allocated to constructing its first nuclear power plants, totaling 6-9 gigawatts (GW) of capacity; and one hundred thirty billion zlotys to offshore wind capacity, totaling 8-11 GW.
The first 1-1.6 GW nuclear facility is expected to be up and running by 2033.
The development of nuclear and renewable energy facilities will create 300,000 new jobs.
Poland has suffered a strain on its coal industry, with pressure being felt on multiple fronts. Banks have become less inclined to finance investment linked to coal, and mines are inefficient by global standards. Electricity produced from coal has also become increasingly expensive due to the EU’s carbon permit scheme.
To make matters worse, many mines in Silesia have been coronavirus hotspots and were forced to shut down. And while the pandemic has compounded the industry’s pre-existing problem, it has also forced Warsaw (Poland’s capital city) to speed up the nation’s energy transition.
The updated energy strategy 2040 shows coal’s share in electricity production will be 37%-56% in 2030, and 11-28% in 2040. And if that seems like a lot, remember that last year it was 74%!
The new plan still needs to be approved by the government, which could be a tricky situation. The Polish governments have, for the most part, defended the country’s persisting use of coal, perceiving it as a guarantee of energy independence. But now, imports are rising, and Polish production is falling, weakening such arguments about coal being a guarantor of energy security. Poland currently has the second most expensive electricity in Europe.
Polish governments also haven’t wanted to upset the industry’s powerful mining trade unions. They recently proposed to close a few coal mines but canceled the suggestion after receiving pressure from the blocks, saying that the closures would result in a surge of unemployment. Moving forward, the government and unions plan to formulate a restructuring plan for the industry together.
Of course, environmental campaigners are not satisfied with this announcement. Greenpeace says the strategy is detached from the economic realities and doesn’t respond to the challenges of the climate crisis.
It said in a statement:
The plan assumes maintaining a high share of coal-fired energy in energy production in 2030 and does not specify the date of Poland’s departure from coal.
Yet, Poland expects to receive the most considerable sum from the EU funds for coal regions’ transformation – 60 billion zlotys (€13.5 billion), according to the climate ministry.
