Poland's PGE plans to add 6.5 GW of renewables capacity by 2030

The Polish state-owned power utility PGE (57.4% state-owned) has presented a transformation plan targeting climate neutrality in 2050. The group intends to invest PLN75bn (€16.4bn) by 2030, with the objective to add 6.5 GW of renewable capacity, including 3 GW of solar PV, 2.5 GW of offshore wind and at least 1 GW of onshore wind. The utility aims to reach 100% of green energy in 2050. PGE, whose power generation is over 80% based on hard coal and lignite, is facing massive costs to invest in offshore wind and is planning to split of its coal assets by 2021 to help raise financing for renewable projects.

The State Assets Ministry of Poland is expected to present a reform plan for state-owned power utilities operating coal assets by the end of 2020. Under the reform plan, power utilities would start separating coal from other assets in 2021, which is expected to facilitate financing for non-coal projects, as banks are increasingly reluctant to finance companies active in fossil fuels. In September 2020, Poland approved a gradual closure of coal mines, with the last mines to shut in 2049. Production of coal and lignite in Poland has decreased since 2012, from 144 Mt to 112 Mt in 2019 (55% bituminous coal and 45% lignite). Coal and lignite account for 73% of Poland’s power mix.