Subsidies: A driving force or obstruction for the Polish energy transition?

The report analyzes Polish state aid for the power sector, concluding that subsidies for conventional power (mostly coal) were twice as high as those for renewables between 2013 and 2018. It highlights systemic inefficiencies in the EU ETS derogations, capacity markets, and the Energy Prices Act, while identifying RES auctions and EU funds as positive drivers of transition. A case study of the Bełchatów Power Plant illustrates how subsidies often support owners rather than environmental goals. The document compares Poland's cost-ineffective model with the more successful transitions in Germany and Great Britain.

• Between 2013 and 2018, Poland allocated twice as much public funding to the conventional power sector, primarily coal, as it did to the renewable power sector, which hindered the transition to low-emission technologies.
• The Bełchatów Power Plant, Europe's largest single greenhouse gas emitter, received an average annual support value estimated at 9-10% of its total revenues, including approximately PLN 2.5 billion in free emission allowances from 2013-2019.
• The Polish capacity market is projected to be significantly more expensive than equivalent markets in the UK or France, with an estimated net cost of approximately PLN 11 billion for 2021-2023.
• The RES auction scheme is a positive example of support, with an estimated net cost of only PLN 0.3 billion for 2021-2023, and is expected to result in lower electricity bills for consumers as net savings outweigh costs.
• The Energy Prices Act is characterized as extremely inefficient because it uses EU ETS allowance revenues to freeze retail prices, which maintains demand for high-carbon energy and weakens price signals for low-emission investments.
• EU funds provided approximately PLN 6 billion in support for the renewable power sector between 2007 and 2020, playing a significant role in stimulating the Polish energy transition.
• The green certificate scheme was an ineffective tool for long-term modernization, as it provided indirect support for old coal-fired units through biomass co-firing without creating permanent ecological effects.
• State involvement through the Polski Fundusz Rozwoju (PFR) and Bank Gospodarstwa Krajowego (BGK) in coal projects creates an alternative cost by reducing funding available for low-carbon investments.
• Compared to Germany and Great Britain, Poland's energy transition model is assessed as cost-ineffective, failing to translate significant support into sustainable systemic effects.

APA

Delarue, J., Kozakiewicz, J., Kukuła, W., Stoczkiewicz, M., Karpiuk, M., Marszał, K., Micuła, P., & Śniegocki, A. (2020). Subsidies: A driving force or obstruction for the Polish energy transition? ClientEarth. https://www.clientearth.org/media/ffrjph3a/subsidies-a-driving-force-or-obstruction-for-the-polish-energy-transition-coll-en.pdf

Chicago

Delarue, Juliette, Julia Kozakiewicz, Wojciech Kukuła, Marcin Stoczkiewicz, Michał Karpiuk, Karolina Marszał, Piotr Micuła, and Aleksander Śniegocki. Subsidies: A driving force or obstruction for the Polish energy transition? ClientEarth, 2020. https://www.clientearth.org/media/ffrjph3a/subsidies-a-driving-force-or-obstruction-for-the-polish-energy-transition-coll-en.pdf.

Wikipedia

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BibTeX

@techreport{delarue2020subsidies, author = {Delarue, Juliette and Kozakiewicz, Julia and Kukuła, Wojciech and Stoczkiewicz, Marcin and Karpiuk, Michał and Marszał, Karolina and Micuła, Piotr and Śniegocki, Aleksander}, title = {{Subsidies: A driving force or obstruction for the Polish energy transition?}}, institution = {ClientEarth}, year = {2020}, month = apr, url = {https://www.clientearth.org/media/ffrjph3a/subsidies-a-driving-force-or-obstruction-for-the-polish-energy-transition-coll-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }