Last year the import of gas, oil and coal cost Poland PLN 89 billion. This year, it will be much more - by the end of June it already amounted to PLN 85 billion. The supply crunch and spike in fuel prices have become the source of an economic and energy crisis, and a means of exerting pressure on Europe. Meanwhile, renewables not only reduce emissions and energy prices, but also import dependency on energy resources.

Europe is going through its biggest energy crisis ever. The attention of decision makers is focused on ensuring energy and heat supplies in the coming months. Meanwhile, long-term challenges and problems in the energy sector that have not been solved before are only accumulating. One of them is the future of the largest power plant in Poland.

Ukraine has prepared relatively well for the heating season, despite the Russian invasion and subsequent war, which has been ongoing for more than six months. The accumulated stocks of coal and gas are likely to be sufficient to ensure heat and electricity supply. The decline in demand for electric power due to reduced economic activity during the war is greater than the lost generation potential, enabling Ukraine to export electricity to the EU. The biggest challenge will be to secure heating if the Russian shelling of CHP plants intensifies. This could cause a humanitarian catastrophe in Ukraine and increase the number of refugees.  

With one year delay the national Recovery and Resilience Plan (RRP) is entering Poland. So far, the discussion around the RRP has focused primarily on money. Meanwhile – and this is particularly evident in the area of energy transition – the RRP is an instrument that has mobilised the Polish government to work out the necessary reforms, involving an in-depth analysis of challenges ahead, assessment of specific solutions, and necessary legal changes, all within specific timeframe. Investment support – although crucial – plays a secondary role in accelerating the implementation of reforms.  

The European Union has decided to allocate 2% of the allowances from its emissions trading system (EU-ETS) for support to poorer countries in their energy transition. Since 2021 this money is transferred to Poland, among others. The local operator – the National Fund for Environmental Protection and Water Management – has been distributing the funds without adequate public scrutiny and information. A year after taking charge of the Modernisation Fund, there is no transparent website to adequately inform society and potential applicants on what and how over EUR 11 bn (PLN 50 bn) is to be spent (and a further increase is on the table). This article deals with the consequences of the current flaws in this process and why their removal is so important for Poland.

On 16 March, Ukraine was synchronised with the electricity grid of continental Europe, bidding a permanent farewell to the systems of Russia and Belarus. The connection took place in an urgent and emergency procedure. This is an important step towards sustainable cooperation with the European Union. But today, in Ukraine, there is first and foremost a warfare, as well as an energy war, which is no less important for the lives of the civilian population of Ukraine and Europe as a whole.

On February 24, Russia started the Ukrainian war. Nothing will be the same again. Russia's brutal attack made the ongoing conflict around energy resources all the more obvious. In 2021 alone Russia could have earned PLN 500 billion (or $120 billion). from the export of energy resources. This revenue funds the Kremlin's military spending. Now we are considering whether giving up Russian fossil fuels is possible. Undoubtedly, this would be a radical solution with far-reaching and not entirely known consequences. If this were to happen, solidarity and close cooperation within the EU would be more important than ever before. In this article, we analyze what options Poland has to break its energy dependence on Russia.

A recent information campaign led by energy companies and echoed by politicians,  suggests that CO2 accounts for as much as 60% of the electricity cost. This message creates an impression that the cost of buying allowances amounts to 60 percent of the end users’ electricity bill. But this is not the case. It does a great deal of harm - it distracts attention from the fundamental problems of the Polish energy sector. It distances us from solutions that can effectively stop price increases. In this article - on the basis of adopted assumptions (presented in the annex) we present, among others, what energy prices for households are actually made of.

Poland has already held six power auctions. Analysis of their results shows that this mechanism in its current form is not an optimum solution for the country. The capacity market has proved more expensive than anticipated, has failed to curb the increase in electricity prices and, in addition, has contributed to the petrification of the outdated and coal-based generation structure. The arduous task of plugging the coal gap has only just begun, which is why decisions on modernisation and on methods for supporting capacity up to 2030 must be taken urgently.

The Polish and German economies work in a system of interconnected vessels.Even if the echoes of the visit of the new German Chancellor Olaf Scholz to Poland suggest that there are many issues that divide us, there are also those that unite us. For instance the development of electromobility may raise this cooperation to a higher level, but it is necessary to prepare strategically for it.  The focus should be on cooperation in the area of technological developmentbattery production and recycling, joint planning of infrastructure, as well as exchange and sharing of knowledge, especially in the area of innovation.