Polish businesses are feeling the strain of increasing costs associated with the European Union’s Emissions Trading System (ETS), sparking concerns about the competitiveness of the country’s industry. According to energy-sector representatives, ETS expenses can constitute up to half of the electricity costs for some Polish industrial consumers, a stark contrast to the EU average, which hovers around 11%. This economic burden is particularly challenging for Poland, which is working to transition away from one of Europe’s largest coal-dependent energy systems.
In response, Polish officials are advocating for adjustments to the ETS that would mitigate these financial impacts while enabling the nation to continue its efforts in reducing emissions. Despite these challenges, Poland is making significant strides in expanding its renewable energy capabilities. In July, renewable energy sources contributed to 41.6% of the country’s electricity mix, a milestone that saw renewable generation surpass coal-fired generation for the first time.
The country is not only focusing on renewables but also investing in energy storage, offshore wind, and nuclear power to diversify its energy portfolio. This diversification is part of a broader strategy to reduce reliance on Russian gas, which has been achieved by increasing LNG imports and developing the Baltic Pipe project.
Polish authorities emphasize that while they are committed to continuing their energy transition, they are seeking more flexibility and adequate time to ensure that the competitiveness of their industries is not compromised. The government is also calling for sustained investment in new power-generation capacity, as well as enhancements to electricity grids, storage solutions, and system flexibility to support this transition.