Shift to nuclear and renewables to require huge investment in power system, Poland to invest up to CZK 2.5 trillion

Strengthening and modernising Poland’s transmission and distribution systems to accommodate the planned expansion of nuclear and renewable sources will require up to PLN 500 billion (around CZK 2.5 trillion). Poland plans to substantially transform its energy sector, reducing its dependence on coal and replacing it with up to six nuclear units and 88 GW of renewable capacity. 

The transformation of Poland’s energy sector will require significant investment in distribution and transmission systems. The latest estimate of the investment required by the Polish system is several times higher than earlier estimates. According to estimates by Poland’s transmission system operator, up to PLN 500 billion, or around CZK 2.5 trillion, will need to be spent by 2040.

The shortcomings of Poland’s grid have long been discussed. As early as the end of last year, environmental organisations warned that the expansion of renewable sources was being hampered by the insufficient development of the grid.

Poland is far from the only country that must invest significantly in its power system as a result of the transition from fossil fuels to renewable sources. Germany is probably the country most often mentioned in this context. However, cases also occur in the Czech Republic where power plants are refused connection to distribution systems. The reason is precisely insufficient grid capacity.

Poland faces energy transformation as major renewable expansion is supplemented by nuclear power

Poland’s new energy strategy envisages that 74% of energy will come from low-carbon sources, including renewable and nuclear sources. As regards renewables, Poland is to have up to 50 GW of installed renewable capacity by 2030 and as much as 88 GW by 2040.

The current situation is entirely different, however. Poland still generates around 70% of its electricity from hard coal and lignite. Until now, Poland had largely resisted the expansion of “new” energy technologies, thereby protecting its domestic coal sector, which supports a substantial number of jobs. In recent years, particularly in response to the energy crisis and the war in Ukraine, the country’s approach has changed completely.