Poland Renewable Energy Market | Size, Share, Trends and Forecast to 2028

The global energy landscape is going through a major shift towards renewable-based energy generation. This energy transition was possible after a decade of rapid technological advancement and a favorable regulatory environment. Additionally, factors such as decreasing costs of renewable energy sources and increasing competitiveness of battery energy storage technologies are expected to contribute to accelerated renewables deployment in the coming years. 

Furthermore, as the concern for climate change and support for environmental, sustainability and governance (ESG) considerations grow, the demand for clean and green power is expected to increase from almost all end-users.

The renewable energy market consists of the establishments primarily engaged in operating renewable electric power generation facilities. The power generation can be from a variety of sources, including solar energy, wind energy, small hydro, bioenergy, geothermal and marine. The electric energy produced in these establishments is provided to electric power transmission systems or electric power distribution systems.

Poland's Energy Mix

Poland produces 83% of its electricity from fossil fuels, placing it top in the EU. 72% of the country’s power in 2021 was from coal.

Only 17 percent of Polish electricity is generated from renewable sources, a figure that ranks among the lowest in the EU and is matched only by much smaller CEE (Central and Eastern European) countries. Poland is currently the only EU country that has not committed to phasing out coal use.

Poland Renewable Energy Market Scenario

Poland's renewable energy source (RES) capacity which includes Wind power, biomass, hydro, photovoltaics, and biogas totaled 15,524 MW in 2021, and it grew by 3149 MW relative to the previous year.

As of the end of 2021, the installed capacity of Solar Photovoltaic in Poland was 6257 MW, while for wind, it was 6958 MW. The capacity increased by 58.2% and 10.4% for solar and wind, respectively, compared to 2020. 

Poland declared a 21-23 percent RES share in its gross final energy consumption by 2030 as part of the EU-wide 2030 objective (total consumption in electricity, heating, and cooling as well as for transport purposes).

Poland Solar Energy Status

In addition to drastically reducing solar PV costs and growing environmental concerns, government incentive programs are driving the expansion of solar energy in Poland. 

Some of the major government incentives include:

Agroenergia (50 million euros), is a farmer-focused incentive program that provides low-interest loans or direct subsidies for the building of solar panels with capacities ranging from 50 kW to 1 MW. 

Net metering incentive schemes have been extended to small and medium-sized businesses in order to give greater support to prosumers. 

Solar installations generating less than 50 kW pay a lesser value-added tax of only 8% (compared to the typical 23 percent). Acquisition and installation expenditures can be deducted from income, lowering tax liability. 

(For more insights and analysis, consider our market report on Poland's Solar Power market) 

Poland Wind Energy Status

Wind energy is becoming an increasingly important component of Poland's energy mix. Its importance is expected to grow much more in the future decades. The full utilization of onshore and offshore wind potential will allow the energy system to be transformed into a low-emission economy.

Poland currently has no offshore wind farms. However, the country intends to construct 5.9 GW of offshore wind power by the end of 2030 and 11 GW by the end of 2040. To enable this rapid expansion, the government has promised to start a new auction mechanism and put aside EUR 22.5 billion for offshore wind development over the next two decades. The Ministry of Climate is entrusted with publishing the auction design specifics and launching the first auction in 2025.

On September 15, 2021, Poland signed its first Offshore Wind Sector Agreement. This government-business collaboration intends to establish Poland as a leader in the offshore wind industry. The Sector Deal commits the industry to create up to 60,000 direct and indirect jobs in Poland's wind industry by 2040. In turn, the government reinforces Poland's aim to speed the renewable energy transition by introducing a new auction system and conducting competitive auctions for offshore wind beginning in 2025.

(For more insights and analysis, consider our market report on Poland's wind Power market) 

Poland Renewable Energy Policy

Renewable energy laws in Poland significantly encourage prosumer activities, and individuals producing up to 10kW of power from a freshly built RES system are guaranteed tariffs for 15 years. The government established an auction system for larger producers.

Every year, the Ministry of Economy specifies the amount of renewable energy that will be required, as well as the reference pricing for each category. The National Plan for Energy and Climate for 2021-2030 assumes that the share of renewable energy in the national mix will rise from 17.6 percent in 2025 to 21 percent in 2030.

In 2021, the Poland Council of Ministers adopted the Energy policy of Poland until 2040 (EPP2040). The document lays out an ambitious, coherent, and responsible plan for Poland's energy revolution.

Poland Renewable Energy Outlook

Poland's Energy Policy until 2040 takes into account changes in the energy mix, as well as the need to ensure: energy security, equitable transformation, recovery from the COVID pandemic, a stable labor market, sustainable economic development, and increased competitiveness through optimal use of Poland's own energy resources.

The total installed capacity in RES electricity production units is estimated to be around 23-25 GW in 2030, resulting in a doubling of installed RES capacity compared to 2020. Offshore wind development has enormous prospects for the country. Poland's installed capacity in projects could reach 5,9 GW in 2030 and around 11 GW in 2040. The requirement for expanding the share of renewable energy sources is to ensure flexible reserve capacity, network infrastructure expansion, and energy storage.

Poland has substantially diversified its gas supply and achieved significant strides in renewable energy. It now has one of Europe's fastest-growing solar PV marketplaces and wants to build a large number of offshore wind projects.

In order to keep pace with the EU's climate change goals, Poland intends to reduce emissions by increasing the use of renewables and natural gas, introducing nuclear energy, electrifying more energy consumption, and improving efficiency.

What do we cover in the Report?

Blackridge Research’s Poland Renewable Energy Market report contains the installed capacity of renewable power generation sources (year-on-year) until 2028, the list of ongoing and upcoming renewable power generation projects such as solar photovoltaic farms, concentrated solar power projects, onshore wind, and offshore wind energy projects and the regulatory scenario within the renewable energy market of Poland.

Furthermore, the report will contain the drivers and restraints within Poland's Renewable Energy Market along with a meticulous evaluation of their impact in the near-, medium-, or longer term. Factors affecting renewable energy deployment include market conditions (e.g., cost, diversity, proximity to demand or transmission, and resource availability), policy decisions (e.g., tax credits, feed-in tariffs, and renewable portfolio standards), as well as country-specific regulations. Finally, the presentation would enable one to identify market opportunities and plan for long-term growth.

The impact of the COVID-19 pandemic is an integral part of the report.

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