We analyse the broad industrial sector from both a climate-energy and socio-economic perspective. We identify the potential for electrification and other technological processes in various industries, changes which will enable rapid and cost-acceptable reductions in fuel consumption and CO2 emissions.
By changing the way of thinking about industrial processes and taking their carbon footprint into account in the economic calculation, the place and role of Polish companies on the global market, and thus the condition of the Polish economy, will depend on the pace of industry transformation. In the new reality, Polish industry may see its chances in the production of modern, low-emission equipment. It is their availability that may determine the pace and success of the energy transition in our country. This is an important area of analysis in the programme as well.
Electrification for energy security. How Poland can reduce its dependence on fuel imports?
Poland’s economy is one of the least electrified in the European Union and, under current government plans, it is set to remain so. The newly published Electrification Action Plan proposes an EU-wide electrification rate target of 46% by 2040. In the same period, Poland, however, assumes that its rate will reach just 26.3%. This would be the lowest level of electrification in the EU, entrenching the country’s dependence on imported fuels and energy. An accelerated pathway for electrifying industry, transport, and heating could bring Poland closer to the EU target and, above all, strengthen its resilience to external price shocks while reducing energy consumption by 15%.
Electrification for energy security. How Poland can reduce its dependence on fuel imports?
Poland’s economy is one of the least electrified in the European Union and, under current government plans, it is set to remain so. The newly published Electrification Action Plan proposes an EU-wide electrification rate target of 46% by 2040. In the same period, Poland, however, assumes that its rate will reach just 26.3%. This would be the lowest level of electrification in the EU, entrenching the country’s dependence on imported fuels and energy. An accelerated pathway for electrifying industry, transport, and heating could bring Poland closer to the EU target and, above all, strengthen its resilience to external price shocks while reducing energy consumption by 15%.
Modernisation or marginalisation. How can industrial electrification ensure security, competitiveness and economic growth for Poland?
Industry plays a crucial role in the Polish economy, accounting for 23% of GDP and providing employment for more than 3 million people. Poland is also one of the most industrialised countries in the European Union and represents an important link in European supply chains. At the same time, Polish industry is falling behind in the competitiveness race. The sector’s strong dependence on imported fossil fuels, which raises the risks in energy security and independence, combined with the progressing decarbonisation of the economy, means that without investment in modern technologies Polish companies may be less competitive than businesses from China and the United States. As shown in the latest report by Forum Energii, Modernisation or marginalisation. How can industrial electrification ensure Poland’s security, competitiveness, and economic growth for Poland?, technological solutions enabling the electrification of more than 60% of heat currently used in manufacturing industry are already available. Their implementation would permanently reduce the sector’s dependence on gas and coal prices, thereby strengthening its competitiveness.
Modernisation or marginalisation. How can industrial electrification ensure security, competitiveness and economic growth for Poland?
Industry plays a crucial role in the Polish economy, accounting for 23% of GDP and providing employment for more than 3 million people. Poland is also one of the most industrialised countries in the European Union and represents an important link in European supply chains. At the same time, Polish industry is falling behind in the competitiveness race. The sector’s strong dependence on imported fossil fuels, which raises the risks in energy security and independence, combined with the progressing decarbonisation of the economy, means that without investment in modern technologies Polish companies may be less competitive than businesses from China and the United States. As shown in the latest report by Forum Energii, Modernisation or marginalisation. How can industrial electrification ensure Poland’s security, competitiveness, and economic growth for Poland?, technological solutions enabling the electrification of more than 60% of heat currently used in manufacturing industry are already available. Their implementation would permanently reduce the sector’s dependence on gas and coal prices, thereby strengthening its competitiveness.
Industrial decarbonisation: where to begin for Poland?
The Polish industrial sector holds a well-established position within the European Union. As one of the largest industrial bases in Europe, it plays a crucial – albeit often upstream – role in the continent’s manufacturing value chain. However, this stable standing may face significant challenges in the near future, driven by rising fossil fuel energy costs and the substantial carbon footprint associated with industrial production. While the reduction of industrial emissions has become a central element in the broader European discourse on competitiveness, the topic remains conspicuously absent from discussions in Poland.
Industrial decarbonisation: where to begin for Poland?
The Polish industrial sector holds a well-established position within the European Union. As one of the largest industrial bases in Europe, it plays a crucial – albeit often upstream – role in the continent’s manufacturing value chain. However, this stable standing may face significant challenges in the near future, driven by rising fossil fuel energy costs and the substantial carbon footprint associated with industrial production. While the reduction of industrial emissions has become a central element in the broader European discourse on competitiveness, the topic remains conspicuously absent from discussions in Poland.
The 2024+ industrial deal. Strategic pathways to modernise the Polish industry
While industrial emissions reduction is a key focus in Europe’s competitiveness discussions, it is notably absent from Poland’s. This is significant given that industry accounts for 23% of Poland’s GDP, employs one in five workers, and generates a quarter of the country’s emissions and energy consumption. Forum Energii’s reports provide essential insights into Poland’s industrial landscape and available decarbonisation technologies.
The 2024+ industrial deal. Strategic pathways to modernise the Polish industry
While industrial emissions reduction is a key focus in Europe’s competitiveness discussions, it is notably absent from Poland’s. This is significant given that industry accounts for 23% of Poland’s GDP, employs one in five workers, and generates a quarter of the country’s emissions and energy consumption. Forum Energii’s reports provide essential insights into Poland’s industrial landscape and available decarbonisation technologies.
Poland’s energy transition is progressing, and 2023 was a year of real records. Although coal remains the main source of electricity production, its share in the mix fell to an all-time low of 60.5%, down 10 p.p. from a year earlier. Production from RES reached 27% for the first time. At the same time, energy production from natural gas increased, by more than 40%. This is a result of falling fuel prices and the flexibility of gas generation. Wholesale energy prices in Poland compared to other EU countries remain very high, and the economy’s dependence on imported fossil fuels is growing rapidly. In the latest, seventh edition of the “Energy Transition in Poland” report, Forum Energii presents the state of transition play and a broader look at the overall process.
Poland’s energy transition is progressing, and 2023 was a year of real records. Although coal remains the main source of electricity production, its share in the mix fell to an all-time low of 60.5%, down 10 p.p. from a year earlier. Production from RES reached 27% for the first time. At the same time, energy production from natural gas increased, by more than 40%. This is a result of falling fuel prices and the flexibility of gas generation. Wholesale energy prices in Poland compared to other EU countries remain very high, and the economy’s dependence on imported fossil fuels is growing rapidly. In the latest, seventh edition of the “Energy Transition in Poland” report, Forum Energii presents the state of transition play and a broader look at the overall process.
Over the past two years, natural gas has become a high-risk fuel: it is subject to huge price fluctuations and, following the disruption of supplies from Russia, competition for imports of this resource from other sources is increasing. Not long ago, there were plans in Poland to significantly increase the consumption of natural gas throughout the economy - by 75% by 2035. It was supposed to be a transition fuel.
Over the past two years, natural gas has become a high-risk fuel: it is subject to huge price fluctuations and, following the disruption of supplies from Russia, competition for imports of this resource from other sources is increasing. Not long ago, there were plans in Poland to significantly increase the consumption of natural gas throughout the economy - by 75% by 2035. It was supposed to be a transition fuel.
