Przykona. A village located in the county of Turek, in the eastern part of the Greater Poland Voivodeship. In September 2023, the second largest photovoltaic farm in Poland was opened there. More than 300,000 double-sided panels located on an area equivalent to 375 football fields have a capacity of more than 200 MW[1]. It can already power more than 100,000 households and there are plans to expand it. If this happens, the capacity will increase by another 40 MW and the farm will become the largest investment of its kind in our country[2] .

This is another project in the photovoltaic sector that is rapidly developing in Poland and whose capacity exceeded 16.9 GW in June this year[3] .

However, in case of the power plant in Przykona, it is not its scale but its location that should attract particular attention. The farm was built on land reclaimed from the Adamów lignite mine. The last tonne of coal was extracted there in 2020, three years before the photovoltaic power plant was put into operation.

Eastern Greater Poland is one of the seven coal regions in our country. Like Silesia, Małopolska, Lublin, Bełchatów and Lower Silesia (Zgorzelec and Wałbrzych sub-regions), it is struggling with the energy transition process.

The true colors of the Polish (just) transition

Five out of seven Polish coal regions are beneficiaries of the EU's Just Transition Fund (JTF), under which Poland has received more than PLN 17 billion for the 2021-2027 period - the most among all EU countries[4] . The following provinces are supported: the Lower Silesia (Wałbrzych sub-region), Łódź (Piotrków and Sieradz sub-regions), Małopolska  (Oświęcim sub-region), Silesia (Katowice, Bielsko-Biała, Tychy, Rybnik, Gliwice, Bytom and Sosnowiec sub-regions) and Greater Poland (Konin sub-region). Currently, Bogdanka (Lubelskie Voivodeship) and Turów (Zgorzelec sub-region in Lower Silesia Voivodeship) are the only ones not benefiting from the JTF.  The latter has not even applied for this financial instrument.

In order to receive the non-refundable JTF funds, the so-called Territorial Just Transition Plans had to be prepared and indicate, among others, the planned date for  transitioning away from coal mining activities and using coal in the region and include a timetable with various stages of this process.

The JTF is of particular importance in the context of Poland's struggle with the energy transition. Among the initiatives supported by the JTF is the construction of photovoltaic farms, energy storage facilities and other low-carbon technologies on reclaimed mining lands, but above all - the diversification of economic activity in regions where until now hard coal or lignite mining and related sectors have been the basis of operation and the main source of income . The activities financed by the JTF aim at reducing dependence on mines and power stations, and at the same time creating new, stable jobs in less carbon-intensive sectors and helping local communities find themselves in a new reality.

Despite the fact that the EU Just Transition Fund is a new, pilot mechanism, Poland is one of the countries that are effectively managing the available funds. This would not be possible without the efforts and a  huge amount of work of the Marshal Offices of the respective coal regions.

What about Brussels?

Meanwhile, at an EU-wide level, the operationalization of the Just Transition Fund is not that smooth.

The aim of the JTF is to support transitioning away from a carbon-intensive economy across the EU, which means that all countries in the European Union, including those without coal regions, are eligible to benefit from this financial instrument.

Twenty-six EU countries have applied for the JTF, but there are some, such as Slovenia, which have not yet allocated a single euro of the approved funds. Other countries face a variety of problems, such as deep divisions and difficulties in reaching consensus among stakeholders (evident above all in the Bulgarian coal regions where discussions on energy transition have not yet started) or lack of clarity regarding the selection of partners and the failure to include key players in the transition-related processes (especially in the Czech Republic and Hungary).

Thus, if the pilot Fund faces such challenges and is not managed effectively across the whole EU, the inclusion of the JTF in the new multi-annual EU budget, which will be drafted soon, is not certain. Cutting off access to money for Polish regions that are able to use the Fund efficiently is therefore a serious risk.              

Hello? Can Warsaw hear us?

The new European Commission is being composed now and the budget portfolio may be taken over by a Polish representative[5]. And it is Poland, as the largest beneficiary of the JTF, that should care the most about continuous EU support for coal regions in the coming years. Especially if one takes into account that in some of them the transition has only just begun. In Bełchatów, where the largest coal-fired power station in Europe and the largest single emitter of CO₂ is located, lignite mining and electricity production from this raw material will fall by three quarters by 2030. That's just six years away! So if the Bełchatów complex employs more than 6,000 people today, it is necessary to have a plan in place now and take concrete measures to prepare for the upcoming changes – for the sake of the people and the prosperity of the region. The priority must be to keep the JTF in the next EU long-term budget.

Poland also faces the challenge of the transformation of Silesia. Maintaining coal production from unprofitable mines until 2049 – which is currently enshrined in the so-called Social Agreement between the government and the mining unions[6] is not realistic – this date needs to be updated urgently. Neither can Turów wait indefinitely to discuss its future.  

The future after coal

Poland must have a plan for what comes after coal – both in the energy sector and in the regions, for which a change in the model of energy generation used throughout the country means that the local economy must be rebuilt.

Concrete decisions, a clear plan and honest communication on the part of decision-makers is crucial if the process of this inevitable transformation is to be fair – that is, one that does not leave the regions on their own, without any help. We, as a country, have had a difficult experience of economic transformation in the 1990s, the mistakes made then cannot now be repeated. However, this will not be possible without plans and huge financial outlays, as the fundamental transition - i.e. the inevitable closure of coal-fired power plants and associated mines - will not begin until after 2027.

Even though the Polish regions are efficiently managing the use of the Just Transition Fund, they need government support. Central authorities should not only prepare a strategic plan for the future of post-coal energy, but also  convince EU partners of the necessity of maintaining the JTF after 2027. Meanwhile, this  topic is neglected. There is no leader of a just transition. It is not clear what number to call on this issue. It is time to make this issue a priority in Poland.

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Just transition is a challenge faced by countries around the world. Poland's experience in phasing out coal is an important example that can be discussed globally. On Thursday - 12 September 2024, Forum Energii, together with the International Network of Energy Transition Think Tanks will host an international conference entitled. "Many paths, one goal. How to achieve a just transition globally and locally?"  - with government representatives from Poland, Brazil, Indonesia, South Africa and Turkey present at the event.

Find out more about the conference - click here.

[1] Maciej Bartusik. Przykona power plant opened. It is the second largest solar farm in Poland, Świat OZE, 22 September 2023, https://swiatoze.pl/elektrownia-przykona-otwarta-to-druga-najwieksza-farma-sloneczna-w-polsce/

[2] Maciej Bartusik. Przykona power plant opened. It is the second largest solar farm in Poland, Świat OZE, 22 September 2023, https://swiatoze.pl/elektrownia-przykona-otwarta-to-druga-najwieksza-farma-sloneczna-w-polsce/

[3] Energy Market Agency. Statistical information on electricity. Monthly bulletin, ISSN 1232-5457, June 2024. 

[4] The Just Transition Fund was established on 24 June 2021. Its aim is to support transitioning away from a carbon-intensive economy, so all 27 EU Member States - including those without coal regions - are eligible to benefit from this pilot financial instrument

[5] The Polish government's candidate for the EU Commissioner is Piotr Serafin, an experienced politician and a lawyer. However, the division of portfolios among the commissioner candidates is not yet determined. The final composition of the new EC, according to media announcements, may be announced on 11 September 2024.

[6] Ministry of State Assets. Social agreement for mining signed, 28 May 2021 Social contract for mining signed - Ministry of State Assets - Gov.co.uk Portal (www.gov.pl)