Poland is embarking on a significant shift in its energy policy, moving away from its long-standing reliance on coal towards nuclear power, with plans to construct its first nuclear power plant in collaboration with American firm Westinghouse. This decision, marked by the signing of a bill by President Andrzej Duda, allocates 60 billion złoty (approximately 14.4 billion euros) in financing for the ambitious project, which is expected to cost around 200 billion złoty in total.
The nuclear plant, set to be built along Poland's Baltic Sea coast, aims to have its first reactors operational by 2036. This initiative represents a pivotal change in Poland's electricity generation landscape, as the country seeks to exit its historical role as a coal champion. In 2020, approximately 70 percent of Poland's electricity was sourced from coal, but this figure is projected to decrease to 57 percent by 2024, with renewables, particularly solar energy, witnessing substantial growth.
Despite this progress, the Polish government has committed to keeping coal operational until 2049, a policy that has drawn criticism from environmental advocates who argue that this timeline is insufficient in light of the urgent climate crisis. The group Beyond Fossil Fuels has labeled the 2049 deadline as "desperately late," urging Poland to align more closely with the 2030 targets set by the Paris Climate Agreement.
Poland's transition towards nuclear energy is driven by both economic and environmental factors. The industrial sector, which is substantial in Poland, faces challenges in moving away from coal. Renewable energy sources, while growing, can be inconsistent, necessitating a reliable baseload power source. Nuclear energy offers a low-carbon solution that can operate continuously, independent of weather conditions, making it an attractive option for Poland as it aims to reduce its carbon footprint.
However, the path to nuclear energy is fraught with challenges. The European Commission has expressed reservations about the compatibility of Poland's proposed state aid for the nuclear project with EU regulations, prompting an in-depth investigation. This scrutiny is reminiscent of previous nuclear projects in Europe, which have often faced lengthy approval processes.
In addition to nuclear plans, Poland is also focusing on energy storage solutions to enhance the stability of its electricity grid. The National Fund for Environmental Protection and Water Management has introduced a capital expenditure support program to promote the construction of battery energy storage systems (BESS) with a capacity of at least 2MW/4MWh. This initiative aims to bolster energy security and grid stability, especially in the wake of increasing reliance on renewable energy sources.
The funding for this program, amounting to 4.15 billion PLN (around €992 million or US$1.07 billion), will be split between grants and loans, with grants covering up to 45 percent of investment costs. The application period for this funding will run from April 4 to May 30, 2025.
State-owned power producer PGE has announced its commitment to invest approximately 18 billion PLN (€4.3 billion) in energy storage over the next decade. This investment will enable PGE to deploy an additional 10GWh of storage capacity, bringing its total to 17GWh. PGE's first project under this initiative will be a 263MW/900MWh BESS in Zarnowiec, which will utilize locally manufactured batteries.
Poland's energy transformation is not just about meeting EU climate goals; it is also a matter of economic necessity. The country has the highest number of air pollution-related deaths in Europe, with around 40,000 premature deaths annually. Additionally, recurrent droughts and severe flooding have posed significant economic challenges, costing billions in damages and threatening the livelihoods of countless citizens.
The World Bank has warned that if Poland fails to adapt to climate change, it could face GDP losses of nearly 1.2 percent by 2050. Conversely, achieving the EU's net-zero emissions target could yield up to four percent cumulative GDP growth, primarily through the development of new green industries and improved air quality.
As Poland navigates its energy transition, the stakes are high. The current government, led by Prime Minister Donald Tusk, has inherited a complex political landscape, where coal mining communities exert considerable influence. Balancing the needs of these communities with the demands of environmental sustainability presents a formidable challenge.
The ongoing investigation by the European Commission into state aid for the nuclear project could potentially delay progress, as could local opposition to new energy projects. Nevertheless, the recent financing bill signals a significant shift in Poland's energy policy, reflecting a willingness to invest in nuclear power as a means of securing a cleaner and more sustainable energy future.
Ultimately, Poland's nuclear ambitions could redefine its energy landscape and economic prospects, potentially transforming the nation from a coal-dependent economy into a leader in low-carbon energy production. The success of this transition will depend on careful management of both domestic and international challenges, but the commitment to nuclear power marks a decisive step towards a greener future.
