Adriana Sas
Research expert covering the Polish market
Energy sector in Poland - statistics & facts
Poland's energy sector is undergoing a significant transformation, with significant progress made in recent years despite ongoing challenges. The energy crisis, rampant energy and gas prices, and the rising cost of carbon dioxide (CO2) emissions have translated into an increase in inflation not seen in decades. Russia's invasion of Ukraine has also forced the Polish government to increase the country's energy security and make Poland independent of Russian energy supplies.
Meanwhile, Poland is heavily reliant on coal, and produced approximately 101 terawatt-hours of electricity from hard coal and lignite in 2023. Coal was the primary energy source, accounting for nearly 79 percent of energy production in 2023. Coal's high share is also responsible for high CO2 emissions. Despite the decreasing trend, the level of emissions amounted to 296 million metric tons of CO2, and Poland's revenue from the sale of CO2 emission allowances reached nearly 230 million euros as of December 2023.
Coal production and its importance in the Polish energy system have declined. On the other hand, government support for photovoltaics has caused renewable energy development to accelerate unprecedentedly in recent years. Although the share of RES in energy production is still small, by the end of 2023, renewable energy generation reached 37.7 terawatt-hours.
In October 2022, the Polish government announced that the U.S. Westinghouse Nuclear would build Poland's first nuclear power plant with AP1000 technology (three reactors) in the Pomeranian Voivodeship. According to the government's plans, construction could start in 2028 and be completed in 2035. It is estimated that the construction costs will amount to 132 billion zloty.
The war in Ukraine has accelerated the process of Poland's independence from external suppliers of energy resources, mainly Russia. The government has prioritized the diversification of energy supply sources by constructing a gas port in Swinoujscie, Baltic Pipe, and a Floating Storage Regasification Unit in Gdansk. This has become the government's priority in ensuring the country's energy security. In 2022, the Polish government passed a resolution to terminate the agreement from 1993 with Gazprom on the supply of Russian gas to Poland.
Energy transition
Poland's energy policy aims to reduce CO2 emissions by increasing the use of renewable energy sources (RES) and natural gas, introducing nuclear power, increasing energy demand in transportation, and improving energy efficiency. Energy production from fossil fuels is expected to decline significantly by 2040 in favor of RES, gas, and nuclear power generation.Meanwhile, Poland is heavily reliant on coal, and produced approximately 101 terawatt-hours of electricity from hard coal and lignite in 2023. Coal was the primary energy source, accounting for nearly 79 percent of energy production in 2023. Coal's high share is also responsible for high CO2 emissions. Despite the decreasing trend, the level of emissions amounted to 296 million metric tons of CO2, and Poland's revenue from the sale of CO2 emission allowances reached nearly 230 million euros as of December 2023.
Coal production and its importance in the Polish energy system have declined. On the other hand, government support for photovoltaics has caused renewable energy development to accelerate unprecedentedly in recent years. Although the share of RES in energy production is still small, by the end of 2023, renewable energy generation reached 37.7 terawatt-hours.
Energy security
The State Strategy for 2040 envisages improving energy efficiency, increasing the security of fuel and energy supplies, developing renewable energy sources, and implementing nuclear power. The government estimates that by 2040, the share of nuclear energy in power generation could reach 16 percent.In October 2022, the Polish government announced that the U.S. Westinghouse Nuclear would build Poland's first nuclear power plant with AP1000 technology (three reactors) in the Pomeranian Voivodeship. According to the government's plans, construction could start in 2028 and be completed in 2035. It is estimated that the construction costs will amount to 132 billion zloty.
The war in Ukraine has accelerated the process of Poland's independence from external suppliers of energy resources, mainly Russia. The government has prioritized the diversification of energy supply sources by constructing a gas port in Swinoujscie, Baltic Pipe, and a Floating Storage Regasification Unit in Gdansk. This has become the government's priority in ensuring the country's energy security. In 2022, the Polish government passed a resolution to terminate the agreement from 1993 with Gazprom on the supply of Russian gas to Poland.
