Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

'Too early' to say if Poland will seek EU approval for more coal subsidies - minister

Published 04/26/2022, 06:21 AM
Updated 04/26/2022, 06:26 AM
© Reuters. FILE PHOTO: A cooling tower from the Turow coal-fired power plant is seen near the Turow open-pit coal mine operated by the company PGE in Bogatynia, Poland, June 15, 2021. REUTERS/David W Cerny/File Photo

By Marek Strzelecki and Kate Abnett

WARSAW (Reuters) - It is too early to say if Poland will ask the European Union for approval to extend capacity market support for coal-fuelled power plants, Polish climate minister Anna Moskwa said on Tuesday.

"Poland needs stable power sources to complement renewable output, some upgrades of existing units are necessary but there won't be any revolutionary changes to energy policy. It's too early to say if we will ask for extension of the capacity market," Moskwa told a news conference in Warsaw.

Poland relies on coal for around 70% of its electricity generation. Plants receive state support for providing baseload power, but that is set to end in 2025 when tighter EU emissions limits kick in for power plants receiving such support.

Poland has been considering upgrading coal-fuelled units to make them more flexible and supplement intermittent renewable output.

Securing EU approval to extend support for coal-fuelled generation may be difficult. Coal is the highest CO2-emitting fossil fuel, and use of it will need to plummet if the EU is to meet its target to cut net emissions 55% by 2030, from 1990 levels.

However, some countries are now considering whether to keep coal plants online longer, to avoid increasing reliance on Russian gas. Gas has lower CO2 emissions than coal when burnt, and countries including Poland had planned to swap coal for gas as a "bridge" fuel on the way to renewable energy.

Russia supplies 40% of EU gas.

EU climate policy chief Frans Timmermans said last month countries could opt to keep coal plants open slightly longer, if they invested heavily in renewables to allow them to switch directly to clean energy earlier.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"It is a sovereign choice of a member state to say okay, we'll stick a bit longer with nuclear or we'll stick a bit longer with coal, but we will compensate that by introducing renewables earlier," Timmermans told the European Parliament's environment committee on March 7.

Moskwa also said Poland was working on a proposal for the EU to impose fees or levies on using Russian energy, and would present the idea to Brussels.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.