Shares in Polish energy companies rise as state offers to buy coal assets

Shares in state-controlled Polish energy companies are rising sharply today. Over the weekend, the government offered to buy their coal-fired power plants. Bloomberg reported the news, saying the government’s proposal is intended to pave the way for Poland to transition more quickly to so-called green energy.

Shares in PGE, Poland’s largest electricity producer, were up nearly 14 percent before noon. Shares in Enea, the country’s third-largest energy company, gained more than 26 percent, while Tauron Polska Energia shares rose by more than 23 percent. Shares in Orlen’s Energa division were up more than three percent.

On Saturday, the companies received offers from the state, worth a total of 18 billion zlotys (96 billion Kč), to separate out their carbon-emitting assets. This is the first step towards the long-awaited transfer of coal-fired power plants and some mines to the government agency NABE.

If completed, the transaction will help energy companies gain access to the financing they need to shift electricity generation to renewable sources. Poland, which gets more than 70 percent of its electricity from coal, is under pressure to meet EU emissions targets.