Observations on Poland's market reform plan

ClientEarth argues that Poland's market reform plan is insufficient and should be expanded to address distortions in the capacity market, illegal subsidies for high-emission power, and the lack of legal frameworks for energy storage and onshore wind development.

• The proposed reductions in the capacity levy for energy-intensive users distort the capacity market's original concept by exempting industrial customers who represent a significant share of peak power demand, shifting the burden of flexibility to small and medium-sized enterprises and public entities.
• The Power Prices Act, which freezes retail electricity prices, is viewed as inefficient and potentially incompatible with EU competition law because it artificially maintains demand for high-emission, coal-fired power plants operated by state-owned companies.
• Poland lacks a legal framework for power storage and a plan for deregulating household electricity prices to move toward market-based supply prices, both of which are seen as necessary for a modern power system.
• The current RES auction scheme is successful and cost-competitive, but it is scheduled to expire by June 30, 2021, which could hinder Poland's ability to meet its 2030 renewable energy obligations.
• The Wind Energy Investments Act of July 2016 effectively blocks the development of new onshore wind projects and prevents the repowering of existing turbines, despite onshore wind being the cheapest zero-carbon technology in Poland.
• Between 2013 and 2018, Poland provided approximately PLN 45 billion in subsidies to the power sector, with nearly PLN 30 billion allocated to carbon-intensive technologies, meaning coal received twice as much funding as renewables.
• Poland has failed to meet EU State aid commitments to decrease coal-fired capacity and deconsolidate the market; instead, the PGE Group has strengthened its dominant position, reaching a 43% market share in 2018.

APA

ClientEarth (2020). Observations on Poland's market reform plan. https://www.clientearth.org/media/jmmhg1be/observations-on-poland039s-market-reform-plan-ce-en.pdf

Chicago

ClientEarth. Observations on Poland's market reform plan. 2020. https://www.clientearth.org/media/jmmhg1be/observations-on-poland039s-market-reform-plan-ce-en.pdf.

Wikipedia

{{cite press release |author=ClientEarth |title=Observations on Poland's market reform plan |date=28 February 2020 |url=https://www.clientearth.org/media/jmmhg1be/observations-on-poland039s-market-reform-plan-ce-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{clientearth2020observations, author = {{ClientEarth}}, title = {{Observations on Poland's market reform plan}}, publisher = {ClientEarth}, year = {2020}, month = feb, url = {https://www.clientearth.org/media/jmmhg1be/observations-on-poland039s-market-reform-plan-ce-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }