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Poland abandons plans to regroup coal-fired plants in a single entity

The Polish Ministry of State Assets has announced the abandonment of plans to create the National Energy Security Agency (NABE), which was expected to own and operate existing coal-fired power plants in Poland. Instead, the country now intends to prepare a package of measure to maintain those plants in the system. Indeed, the projected cumulated financial gap for the 14 coal-fired power plants that would have been part of NABE between 2025 and 2040 was expected to reach PLN54bn (€12.6bn), which translates to a PLN74/MWh loss of electricity. There was also doubts about the European Commission's acceptance of state support for NABE if coal assets were concentrated in a single entity.

The government will work to extend and reform the capacity market mechanism with the objective to ensure security, while also providing the opportunity for the most cost-effective decarbonisation. The new mechanism will consist of three elements: the continuation of the capacity market, the flexibility market, and the implementation of the decarbonisation mechanism. It aims to build new low-emission units that will ensure system security and generation adequacy, providing at the same an opportunity to keep coal fired units in operation for as long as needed.

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