Financial and legislative aspects of the energy transformation in Poland

The Institute of Finance’s report addresses the topic of energy transformation – one of the greatest challenges Poland has faced in the 21st century. This process is currently arousing much controversy in European societies due to rising energy prices and the risk of energy poverty.

The authors of the study explain the theoretical foundations of the transformation, showing that energy transformations caused by fuel competition have already occurred in the past, but the current one is driven by other factors – politics, social movements, and legal regulations. The report introduces the subject of the Green Transformation of the 21st century in an accessible and thorough way, presenting UN, EU and Polish legal acts. It brings closer the issues of Poland’s energy policy until 2040 and the public opinion about this transformation in Poland.

A great emphasis is placed on the problem of just transition; social and economic challenges of the regions going through the process are discussed. The report contains answers to numerous questions related to this issue, including: How many job positions will be liquidated in Zgorzelec Poviat? What will Wałbrzych Subregion face? What changes will the budgets of the communes of Western Lesser Poland encounter? Why will the 35 communes of Łódź Voivodeship be strongly affected by the negative effects of the transformation? What changes will take place in Biała, Chełmsko-Zamojski and Lubelskie subregions?

The energy transformation is a huge financial challenge that will connect the government, local authorities, financial and insurance sectors, non-financial companies, and individuals. The report introduces the sources of financing this process, i.e. EU cohesion policy, Just Transition Fund, National Recovery Plan, other EU funds, funds related to the EU-ETS, private funds, and green bonds.

Finally, the report answers the question what the optimal energy mix for our country is. Based on the analysis of the competitiveness of energy sources, the report presents an optimal proprietary solution, in which energy in Poland will come from: offshore wind farms (26%), nuclear power plants (16%), biomass (14%), photovoltaics (12%), onshore wind farms (9%), gas (9%), hydrogen (3%), hydropower plants (2%), and other technologies or energy imports (9%).