Poland Speeds Up Coal Mining Exit

Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)

Summary

Poland's government is hoping to accelerate its move away from coal mining and coal-fired power with the introduction of a bill designed to allow companies to more easily shut mines, offer financial support for miners and help with the redevelopment of mining regions. 

The Move Away from Coal

The Polish government has approved a bill to help mining companies shut unprofitable mines and support workers as it transitions to cleaner energy sources. The Council of Ministers has adopted a draft amendment to its Act on the Operation of the Hard Coal Mining Industry to allow mining companies to "independently close mines, limit subsidies for mine operations, and introduce a package of protective benefits for employees." Poland supplied 98% of the European Union's (EU's) hard coal in 2024 and is the second largest producer of brown coal after Germany. The country is also Europe's second-largest consumer of coal, after Germany, with 57% of the country's electricity being supplied by coal-fired plants - the highest in Europe. Industrial Info is tracking 120 mining and coal-fired power projects in Poland worth almost US$1.5 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports. Poland is the only country in the EU not to have committed to an exit date for coal-fired power and has been under increasing pressure from the Union to cut emissions and accelerate its shift to cleaner energy sources.

Support for Miners

"The amendment is a concrete response to the challenges of energy transformation and real support for thousands of miners," said Minister of Energy Miłosz Motyka. "We want the process of change to proceed responsibly, with respect for local communities. The new regulations open the way to a just transformation of mining regions, and post-mining areas can gain new functions, becoming an opportunity for investments and development as well as creating new jobs."

Coal Mining Less Profitable

Poland's coal mining industry is heavily subsidized by the State, which has helped offset downturns in the industry. In 2025, the government will spend 9 billion zloty (US$2.4 billion) propping up the sector, according to Notes from Poland - around 10% of its tax revenue. The cost of mining coal in Poland is also among the highest globally, at over 900 zloty (US$243) per tonne of coal produced, compared to 148 zloty (US$40) per tonne in the U.S. In September, state-owned Jastrzębska Spółka Węglowa (JSW), Europe's largest coking coal producer, turned in a PLN 2.08 (US$562 million) loss for the first half of this year, which it blamed largely on a fire at its Knurów-Szczygłowice mine, falling demand and a sharp decrease in the global price of coking coal. The company admitted that a number of key factors are making business increasingly difficult, including protectionism, weaker demand from the European and global steel sector, increased supplies of cheaper Indonesian coke and higher imports of cheap steel from China. 

Poland's Energy Shift

In the past decade, Poland has cut its coal dependency from 87% to 57% in its power mix, although its shift to cleaner energy has been slower than many other EU countries. 

The National Energy and Climate Plan calls for renewables to reach an ambitious 56% share in the electricity mix by 2030 - almost double what it is today. Onshore wind (14%) and solar power (9%) made up the bulk of the country's renewables in 2024, with solar leading the charge in terms of installations, with a 34.5% jump year-on-year compared to wind's 5.5% growth, according to Forum Energii data. Power generation from renewables has increased by 119.7% from 22.7 terawatt-hours (TWh) in 2015 to 49.8 TWh in 2024.

Nuclear Power on the Horizon

Industrial Info is also tracking plans for Poland's first large-scale nuclear power plant and its small modular reactor developments. The government is driving a program to build 6 to 9 gigawatts (GW) of nuclear power, starting with three reactors at the Lubiatowo-Kopalino site in northern Poland. The plant will boast three Generation III+ AP1000 reactors from Westinghouse Electric Company (Cranberry Township, Pennsylvania) with a combined output of 3,750 megawatts (MW). The first reactor is planned to be commissioned in 2033. For additional information, see November 22, 2022, article - Poland's First Nuclear Plant Project Goes to Westinghouse.

By the numbers

• 23 operational coal mines - 19 hard coal, 4 lignite - but extraction levels continue to fall
• 120 active Polish mining and coal-fired power projects worth almost US$1.5 billion being tracked by Industrial Info
• 57% - the current share of coal-fired power in Poland's energy mix

Key Takeaways

• Poland's government offering support for mining companies to shut mines and support miners financially
• Poland under EU pressure to speed up energy transition and greatly lower emissions
• Coal's share in the power mix has dropped from 87% to 57% in a decade
• Poland's energy mix is changing, with renewables accounting for more than a 29% share
• Solar power is the country's fastest growing renewables segment, jumping 34.5% last year 

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).