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Energy sector data

How is the structure of electricity production in Poland changing? What emissions are involved? What are the prices of fuels? Here is a summary of the most important data about the energy sector. Updated every month. 

 

May 2022 - summary 

Another month in a row, photovoltaics broke production records. There are now more than 1.1 million prosumer installations. In June, solar power provided more than half of the production from renewable sources (also due to lower windiness and the resulting lower production from wind farms). 

The share of fossil fuels also increased in total electricity production in June (it reached nearly 80%). However, thanks to lower consumption and higher imports of electricity, emissions from the electricity sector declined from both last year and last month. They amounted to an estimated 9.3 million tons of CO2. 

  • Average monthly power demand in June 2022 was 18.8 GW (about 200 MW less than a year ago), reaching a maximum of 23.3 GW. Electricity consumption was 13.5 TWh - 1.5% less than a year ago (13.7 TWh). 
  • Electricity production was 2.2% higher than in June 2021 at 12.7 TWh.  
  • Electricity production from RES fell 13% (-0.41 TWh) against May, to 2.65 TWh, which accounted for 20.9% of the generation mix. Fossil fuels accounted for 79.1% of electricity (+2.3 p.p. relative to May), with hard coal accounting for 44.5% (5.6 TWh), lignite 27% (3.4 TWh), natural gas 6% (0.8 TWh) and other fossil fuels 1.5% (0.2 TWh).  
  • Among renewable sources, wind farms produced 7.4% of electricity (0.9 TWh - 35.5% of RES production), photovoltaics were responsible for 10.5% (1.3 TWh - 50.3% of RES), 0.8% came from hydropower (0.1 TWh - 3.8% of RES), 1.4% from biomass (0.2 TWh - 6.5% of RES), and 0.8% from other renewable sources (0.1 TWh - 3.9% of RES).  
  • Net electricity imports increased for the first time this year, but still amount to less than 0.9 TWh, or 6.3% of total domestic consumption.  
  • The price of coal in the domestic electricity market (imaged by the PSCMI1 index) rose by more than 11% to PLN 15.20/GJ. After a rapid increase last month, the price of coal in the heat market (PSCMI2) fell by about 10% to PLN 18.11/GJ. 
  • Emissions from the electricity sector were estimated at 9.26 million tons of CO2. This is 5% less than a year ago and 1% less than in May. 

The chart shows the electricity generation mix in Poland, divided into different technologies using fossil fuels or renewable sources. The primary source of electricity is hard coal and lignite, but the share of natural gas and RES is still growing.

Knowledge of the structure of electricity generation allows for the calculation of carbon dioxide emissions from power sector. CO2 emissions are calculated using reference fuel emission factors adopted by the Forum Energii (lignite: 1065 kg/MWh, hard coal: 900 kg/MWh, natural gas: 450 kg/MWh).

The chart shows a comparison of monthly electricity consumption and production in the current and previous year. Seasonality is clear - total energy consumption is highest in the winter months.

In the long run, the consumption is influenced on the one hand by economic development (which results in the increase of consumption) and on the other hand by progressive efforts in the field of energy efficiency (which results in the decrease of consumption). 

 

The total load in the Polish power system varies between 10 GW and 25 GW. The average value illustrates the situation in a respective month. Observing the monthly minimum and maximum values, leads to a conclusion that the summer months are characterized by significant variability of load and high demand peaks around noon.

The chart shows a comparison of weighted average monthly prices on Polish Power Exchange. The Commodity Forward Instruments Market covers about 80% of the electricity volume traded on the Polish Power Exchange.

The two most important instruments relate to energy supply 24 hours a day (BASE) and 7:00 - 22:00 (PEAK5). The contracts are concluded with future delivery (max. 3 years). The vast majority of transactions on the exchange concern purchase of energy with supply in the nearest calendar year (n+1).

The graph shows Clean Dark Spread calculated on the basis of: BASE indexes with delivery in the next year (TGE Derivatives Market), coal prices (PSCMI1 index) and CO2 emission allowance prices (EEX primary market).

The Clean Dark Spread is the difference between the electricity price and the estimated variable costs associated with the production of electricity from coal (fuel and emission allowances). Clean Dark Spread is an indicator correlated with the margin of a power company, producing electricity from hard coal (in fact, it is necessary to take into account also transport costs, operating costs, incurred and planned investment costs, etc.). The analysis of the evolution of this value, together with the CSS, allows to estimate the current financial situation of electricity companies.

The graph shows Clean Spark Spread calculated on the basis of: BASE indexes with delivery in the next year (TGE Derivatives Market), natural gas prices (TGE Derivatives Market) and CO2 emission allowance prices (EEX primary market).

Clean Spark Spread is the difference between the electricity price and the estimated variable costs associated with the production of electricity from natural gas (fuel and emission allowances). Clean Spark Spread is an indicator correlated with the margin of a power company, producing electricity from natural gas (in fact, it is necessary to take into account also transport costs, operating costs, incurred and planned investment costs, etc.). The analysis of the evolution of this value, together with the CDS, allows to estimate the current financial situation of electricity companies.

The current situation in the power sector, hour after hour, can also be followed by looking at Forumetr

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