04.14.2021

Energy industry to subsidise coal power amid high CO2 emission prices

Poland will need to subsidise its coal-fired power plants, given the current high CO2 emission prices in order to prevent increases in household bills, the deputy PM and State Assets Minister Jacek Sasin has said.

“Today, with such sudden growth of prices of CO2 emission certificates, this [self-financing of the energy sector] is impossible, and subsidies will be needed,” Mr Sasin told Polish public broadcaster TVP1. “The subsidies will be made so that, first of all, Poland’s energy security is ensured, and secondly, so that the average Polish family would not be impacted by a sudden increase in electricity prices,” he added. According to Mr Sasin citing unspecified experts’ calculations, the average household would ultimately face an electricity bill price hike of PLN 250 (EUR 55) annually within the next several years if Poland abstained from such subsidies. “We need to take these actions as they will halt this trend and allow power utilities… to get financing for investments in other generation sources: renewable energy but also gas power plants,” the official went on to say. He also noted that at this point, it is impossible to determine the exact size of support required. Recently, Mr Sasin announced that Poland would seek the green light from Brussels to inject new capital into its power utilities so that they will not have to raise energy prices for individual users. “Poland already has a concept for such a financial mechanism,” he said.

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