Poland's coal resources
Poland possesses substantial coal resources, which play a crucial role in its energy sector. Primarily found in the Upper Silesian and Lublin basins, Poland's coal reserves are estimated at approximately 28.5 billion metric tons. Historically, Poland was a leading coal producer in Europe, particularly from the 1970s until the late 20th century. However, coal production has seen a decline since its peak, with recent figures showing a production of about 116.7 million metric tons in 2022, against a consumption of 123.8 million metric tons.
Despite the ongoing reliance on coal, which accounts for around 78.4% of electricity generation, Poland is in the process of transforming its energy landscape. The government has set ambitious goals to transition towards renewable energy sources, aiming to generate 70% of its electricity from renewables in the future. Environmental concerns related to coal mining and emissions have prompted regulatory changes, including the enactment of frameworks to address pollution and promote efficiency. As Poland navigates this transition, it continues to face challenges stemming from its historical dependence on coal, while modernizing its energy infrastructure to accommodate a greener future.
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Poland's coal resources
Official Name: Republic of Poland.
Summary: Poland has significant coal resources and is highly reliant on them. Since Poland’s market reformation in the 1980s, the energy sector has undergone privatization, but the energy mix has remained largely unchanged, with a small increase in alternative energy sources.
During the 1970s, Poland’s energy production and consumption increased along with the expansion of the economy and rise in industrial output. Energy utilization, however, sharply decreased in 1981, when martial law was imposed in Poland. During this period, the political situation worsened and economic productivity deteriorated as energy-intensive industries’ output declined. In the late 1980s and early 1990s, Poland began its transformation from a centrally planned economy to a liberalized market economy. As a result, industrial output gradually began to recover. The World Bank financed some sector reforms during the 1990s, helping to establish energy laws, the Energy Regulatory Office (URE), and the electricity exchange market. The government lifted pricing controls as a part of its economic “shock therapy” in an attempt to increase prices in the energy sector gradually; however, this led to rapid price increases instead.
Industry and commercial buildings responded to the rise in energy prices by increasing energy efficiency. Consequently, energy production began to decrease as economic output declined. State industries suffered as a result of increased competition and cuts in state subsidies. To make the economic situation worse, trade relations with eastern European countries and the Soviet Union deteriorated, cutting off a supply of cheap, raw materials and export markets. Since Poland’s energy sector was tied to that of the Soviet Union, the Polish were reliant on Soviet oil imports and Soviet markets for coal exports. Eventually, Poland’s economy began to recover as the private sector developed. However, energy production has declined since the 1980s, compared to the 1970s, primarily because of a reduction in energy intensity and consumption in industries.
Poland’s historically energy-intensive economy and strong reliance on coal led to serious environmental degradation, particularly from emissions. According to the International Energy Agency (IEA), in the late 1980s Poland’s electricity generation accounted for 52 percent of sulfur dioxide (SO2) and 32 percent of nitrogen oxide (NOx) emissions. Other environmental issues include large quantities of ash disposal, large volumes of waste from electricity generation, and waste discharges from coal mining. Major rivers, such as the Vistula and the Oder, were polluted by discharges of saline water from coal mines in the resource-rich Silesia region of Poland. Additionally, groundwater extraction near the mining areas resulted in water shortages, and open-pit (surface) lignite mining reduced the land available for agricultural use. In 1990, the government enacted a framework regulation based on the “polluter pays” principle for environmental protection. The regulation established emission limits (mainly for SO2 and NOx) for each unit of fuel consumed.
In 1997, the Energy Act was established as the overarching energy framework, covering areas such as energy security and efficiency, promoting competition and consumer choice, and environmental issues. The act appointed the Ministry of Economic Affairs to oversee the Polish energy sector and outlined the obligations of the Energy Regulation Office (URE), the government executive body created in 1997. The URE’s role was to ensure regulatory compliance and to protect consumers’ rights. This was to be achieved by overseeing energy production licensing, trade, transmission, pricing, and third-party access to the energy market. The Energy Act was revised in 2005, establishing a green certificate system and a renewable energy source (RES) quota for renewable energy, as well as tax exemptions, particularly for biofuels. The RES quota required energy suppliers to reach a minimum 4.8 percent share of renewable energy by 2007 and 7.5 percent by 2010, according to the European Union (EU) accession treaty. In 2007, the Energy Act was once again amended to increase the share of renewable energy from 9 percent to 10.4 percent from 2010 to 2014. The Energy Act was amended again in 2023. This amendment enabled Citizen Energy Communities (CECs) to operate throughout the country, beginning in August 2024. The purpose of CECs was to provide environmental, economic, or social benefits to their members. Also in August 2024, electricity consumers gained the right to enter into dynamic pricing contracts with any retailer serving more than 200,000 customers.
In 2000, the Council of Ministers in Poland adopted a long-term approach to energy policy in the Assumptions for Poland’s Energy Policy Until 2020, which focused on energy safety and security, market competitiveness, and environmental protection. In 2005, another plan, Poland’s Energy Policy Until 2025, was created to address the development of renewable energy sources. The 2005 Energy Policy was superseded in 2008 by the new Energy Policy, effective until 2030.
Market reforms in Poland led to limited vertical integration, with most energy firms operating in one of three areas: generation, transmission, and distribution. Additionally, the market is highly fragmented, with low horizontal integration. The four major power generators that have been partially or fully privatized are Polaniec, Rybnik, Skawina, and PAK. Transmission activities are run by the state-owned transmission system operator Polskie Sieci Elektroenergetyczne (PSE), and distribution companies are also primarily dominated by state-owned companies and two private companies, Vattenfall and RWE.
Electricity Generation by Fuel Type
According to the World Factbook, in 2022, Poland generated 58.719 million kilowatt-hours of electricity and consumed 156.869 billion kilowatt-hours. It imported 15.238 billion kilowatt-hours of electricity and exported 16.915 billion kilowatt-hours. In 2022, 78.4 percent of its electricity was generated using fossil fuels, 11 percent was produced from wind power, 4.9 percent was produced from solar power, and 4.9 percent was created using biomass and waste. About 0.8 was generated using biomass and waste.
Historically, electricity generation in Poland has been dominated by coal and lignite. Coal reserves, located primarily in the Upper Silesian region and in the Lublin basins, contain 10.3 billion tons of coal equivalent (tce). Additionally, 573 million tce of known lignite reserves are located in the central and southwest regions of the country. From 1972 to 1979, Poland was Europe’s largest coal producer, with 150.7 million tce, and the second-largest coal producer in the world until 1979 (according to Euracoal, the European association for coal and lignite). Coal production decreased in 2002, to 102.1 million tce, and in 2007 it decreased further, to 87.4 million tce.
In 2022, Poland produced 116.682 million metric tons of coal and consumed 123.782 million metric tons. The country imported 13.347 million metric tons and exported 12.047 million metric tons. Poland had proven reserves of 28.531 billion metric tons of coal in 2022. Poland also had proven reserves of 91,492 billion cubic meters of natural gas. In 2022, it produced 5.551 billion cubic meters of natural gas and consumed 20.056 billion cubic meters. Poland exported 587,771 million cubic meters of natural gas and imported 14.42 billion cubic meters. Also in 2022, Poland produced 24,000 billion barrels per day of oil and consumed 722,000 billion barrels per day. Its estimated oil reserves in 2021 were 113 million barrels.
In 2023, Poland set a goal of moving away from coal energy and generating 70 percent of its power from renewable sources, but it did not indicate when it would achieve this goal. However, as of 2023, it was upgrading its power grids to handle a transition to renewable and nuclear sources.
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Bibliography
Paskaa, J., et al. “Current Status and Perspectives of Renewable Energy Sources in Poland.” Renewable and Sustainable Energy Reviews 13 (2009).
"Poland." The World Factbook, Central Intelligence Agency, 30 July 2024, www.cia.gov/the-world-factbook/countries/poland/#energy. Accessed 7 Aug. 2024.
"Poland 2022." US International Energy Agency, 12 May 2022, www.iea.org/reports/poland-2022. Accessed 7 Aug. 2024.
Strzalkowski, Patryk. "Poland's New Government Yet to Deliver on Energy Transition Process." Clean Energy Wire, 1 Aug. 2024, www.cleanenergywire.org/factsheets/clew-guide-upcoming-election-will-shape-direction-and-pace-polands-energy-transition. Accessed 7 Aug. 2024.