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4) More efficient and clean coal energy
Sector/Subsector: Energy Union / Connections and production
Description: To reduce import dependence of the European energy sector and increase
its energy safety, Europe aims to produce 70% of energy from its own resources by
2030. Depending on country-specific characteristics, Member State will aim to achieve
this goal by relevant adjustments of their energy mix.
Energy production in Poland is based mainly on coal. While efforts are being undertaken
to increase the share of RES generation and to construct a nuclear power plant, for
Poland coal will still remain the main energy source in the medium-term. Hence, many
projects are planned in order to replace old inefficient coal-fired power units (co-
generation units) with new, highly efficient and environmentally friendly ones or
increase the efficiency of the old units.
This will also help to achieve the EU goals of increasing the share of energy generated
from internal resources. Simultaneously, the more efficient and clean use of coal for
energy production will help Poland to address the EU environmental goals.
Financing needs: Projects’ costs range from €50mn to €5 bn.
Involved parties: Public institutions (e.g. Ministry of Economy, Ministry of Treasury)
and power sector (e.g. ENERGA S.A., ENEA S.A., PGE S.A., TAURON Polska Energia S.A.).
Main project barriers:
- Very high costs (of the biggest projects),
- Financing constraints (private players have limited debt taking capabilities, no
public funds devoted to the projects yet),
- Legal and administrative constraints,
- Numerous stake holders to be involved during the investment process.
Socio-economic benefits: More efficient coal based production will result in a
reduction of the greenhouse gases emissions levels. Additionally, more efficient coal-
based generation will allow energy companies to reduce the variable costs component in
the energy production process (i.a. less coal needed, lower emission charges, lower need
for emission allowances), which in a long term should positively affect the end-customer
electricity prices and fuel the economic growth.
Furthermore, maintaining a core of efficient coal-based energy generation plays an
important role from the national energy security perspective and it is vital for the
performance of the polish mining sector.
European Value Added: The projects is in line with EU’s efforts to reduce the
greenhouse emission levels while at the same time maintaining a high level of national
energy security.
Project examples:
Construction of the Power Unit No.11, 1075 MWe, in Kozienice Plant (€1.5 bn);
Cogeneration power plant, capacity: 135 MWe and 180 Mwt in Katowice (€350 mn);
Modernization of numerous units (€50-300 mn);
In a longer term, Gubin lignite mine and power plan (€5 bn).
6
Sector/Subsector: Energy Union / Connections and production
Description: To reduce import dependence of the European energy sector and increase
its energy safety, Europe aims to produce 70% of energy from its own resources by
2030. Depending on country-specific characteristics, Member State will aim to achieve
this goal by relevant adjustments of their energy mix.
Energy production in Poland is based mainly on coal. While efforts are being undertaken
to increase the share of RES generation and to construct a nuclear power plant, for
Poland coal will still remain the main energy source in the medium-term. Hence, many
projects are planned in order to replace old inefficient coal-fired power units (co-
generation units) with new, highly efficient and environmentally friendly ones or
increase the efficiency of the old units.
This will also help to achieve the EU goals of increasing the share of energy generated
from internal resources. Simultaneously, the more efficient and clean use of coal for
energy production will help Poland to address the EU environmental goals.
Financing needs: Projects’ costs range from €50mn to €5 bn.
Involved parties: Public institutions (e.g. Ministry of Economy, Ministry of Treasury)
and power sector (e.g. ENERGA S.A., ENEA S.A., PGE S.A., TAURON Polska Energia S.A.).
Main project barriers:
- Very high costs (of the biggest projects),
- Financing constraints (private players have limited debt taking capabilities, no
public funds devoted to the projects yet),
- Legal and administrative constraints,
- Numerous stake holders to be involved during the investment process.
Socio-economic benefits: More efficient coal based production will result in a
reduction of the greenhouse gases emissions levels. Additionally, more efficient coal-
based generation will allow energy companies to reduce the variable costs component in
the energy production process (i.a. less coal needed, lower emission charges, lower need
for emission allowances), which in a long term should positively affect the end-customer
electricity prices and fuel the economic growth.
Furthermore, maintaining a core of efficient coal-based energy generation plays an
important role from the national energy security perspective and it is vital for the
performance of the polish mining sector.
European Value Added: The projects is in line with EU’s efforts to reduce the
greenhouse emission levels while at the same time maintaining a high level of national
energy security.
Project examples:
Construction of the Power Unit No.11, 1075 MWe, in Kozienice Plant (€1.5 bn);
Cogeneration power plant, capacity: 135 MWe and 180 Mwt in Katowice (€350 mn);
Modernization of numerous units (€50-300 mn);
In a longer term, Gubin lignite mine and power plan (€5 bn).
6
