Poland To Reduce Coal in Power Mix

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Poland has announced a draft energy plan that will see renewable energy and nuclear power used to wean the country off its almost total reliance on coal-fired plants for electricity.

The draft energy plan to 2050 highlights a number of scenarios in which different amounts of nuclear power and renewables will drastically reduce the use of coal in power generation. Poland relies on coal for more than 90% of its electricity and is under pressure from the European Union (E.U.) to reduce its reliance on fossil-fuel powered electricity in favour of more renewable and low carbon energy.

In the two scenarios put forward, the government believes that nuclear power will be "an important element of the energy sector after 2025". Both plans see a significant drop in the use of high-emitting brown and black coal-fired plants by 40% in the coming decades.

Nuclear power in one scenario will provide approximately 50 terawatt hours (TWh) annually from 2035 while in the other scenario it will be pushed more to the forefront by providing up to 74 TWh per year by 2050. The first plan is closer to reality however since it tallies with current nuclear development plans. State-owned Polska Grupa Energetyczna (PGE) (PW:PGE) (Warsaw, Poland) plans to build a nuclear portfolio with an estimated capacity of around 6,000-megawatts (MW) through two, 3,000 MW plants. Last October, PGE announced that sold a 10% share each in its specially formed company, PGE EJ1, to Polish utilities Tauron Polska Energia SA (Katowice, Poland) and Enea SA (WSE:ENA) (Poznan, Poland), together with copper supplier KGHM Polska Miedz SA (WAR:KGHM) (Lubin, Poland). PGE will retain the controlling stake of 70%. Three possible sites for the first nuclear power plant (NPP) are Choczewo, Gaski and Zarnowiec. For additional information, see October 3, 2014, article - Poland Sells Stake in First Nuclear Project.

In the first draft energy scenario renewables will be expanded about 60 TWh per year by 2035 and up to approximately 75 TWh in 2050. However, in the second nuclear-heavy scenario, renewable swill produce around 49 TWh per year by 2050.

Regardless of future energy goals, Poland is facing an energy crisis in the next few years, and coal is expected to plan a key role in keeping the lights on. For additional information, see August 12, 2013, article - Poland Faces Energy Crisis.

Earlier this year, PGE awarded contracts for two new 900-megawatt (MW) units as part of its troubled expansion project for the Opole coal-fired plant in south-west Poland. French engineering firm, Alstom S.A. (ENX:ALO) (Paris, France) struck a deal worth €1.25 billion ($1.69 billion) with project partners Rafako (Racibórz, Poland), Polimex-Mostostal SA (WAR:PXM) (Warsaw, Poland) and Mostostal Warszawa (Warsaw, Poland) to add Units 5 and 6 to the coal-fired plant. The new ultra-supercritical (USC) additions will make Opole the largest coal-fired plant in the country. With the new additions it will be able to power almost two million homes. For additional information, see February 7, 2014, article - Poland's Largest Coal-fired Plant Underway.

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