As Poland accelerates its shift toward renewable energy, particularly in offshore wind, key factors drive this transition. Partner and Head of the Compliance Department at KWKR Mariusz Purgal and Penteris Partner Sebastian Janicki look at the country’s renewable energy landscape, major projects, government incentives, challenges, and role in the European Union’s energy transition.
Commitments Made to Renewable Energy
“Poland’s recent surge in renewable energy projects, particularly in offshore wind, is driven by several key factors,” Purgal begins. “The primary driver is the country’s commitment to energy transformation, aiming for decarbonization by 2050. This involves a gradual phase-out of coal, increasing the demand for alternative energy sources like offshore wind.”
Purgal goes on to add that Poland is obligated to meet the EU’s climate goals, “including achieving a 32% share of renewable energy in final energy consumption by 2030. Legislative changes and government support, such as financial mechanisms and renewable energy auctions, also play a crucial role in attracting investments in offshore wind as a promising development area.”
Janicki highlights EU directives and national policies, saying that Poland’s recent surge in renewable energy projects is propelled by several EU directives and national policies aimed at reducing coal dependency and achieving climate targets. “Central to this is the European Green Deal, which aims for EU-wide carbon neutrality by 2050,” he says while also noting pressure from the Fit for 55 initiative. “Fit for 55 places pressure on Poland to overhaul its coal-heavy energy mix. Thanks to European Investment Bank loans and the EU Just Transition Fund and Invest EU programs, Poland benefits from financial support to ease coal phase-out, slated for completion by 2049.”
Major Projects and Key Players
Several significant renewable energy projects are in development, with major industry players involved. Outlining key projects, Purgal notes that “in offshore wind, notable projects include Baltic Power by Orlen Group, Baltic Sea by PGE, and F.E.W. Baltic by RWE. Companies like Equinor and Orsted are also planning to build wind farms in the Baltic Sea, with a combined capacity of several gigawatts.” Additionally, he shares that there are ongoing developments in photovoltaic projects and onshore wind farms.
Chiming in, Janicki also highlights offshore wind projects such as Orsted and PGE’s Baltica 2 and 3, “projected to generate up to 2.5 gigawatts. Equinor and Polenergia, with Siemens Gamesa as a turbine supplier, are key players in offshore wind. Vestas has plans to open manufacturing plants near Szczecin to support local wind projects.” Moreover, he also mentions nuclear energy developments, adding that “in nuclear, the government has partnered with Westinghouse for a large nuclear plant, with additional locations under consideration. Poland has also been active in small modular reactor development, with Orlen Synthos and other companies pursuing SMR projects for industrial needs.”
Government Support
Furthermore, government policies and incentives play a crucial role in Poland’s move away from coal dependency.
“The Polish government has adopted several key policies to support the energy transition,” Purgal reports. “These include amendments to the Renewable Energy Sources Act and the Energy Law, support mechanisms for renewable energy, the green certificate system, and investment programs in renewables.” He highlights the importance of the Polish Energy Policy until 2040 which “emphasizes the dynamic development of renewable energy sources. The government is also engaged in international climate and energy mechanisms within the EU, accelerating the decarbonization process.”
Regarding the specifics of the Polish Energy Policy until 2040, Janicki says that “it targets 23% renewable energy by 2030, with major expansions in offshore wind and solar power, aiming for 5.9 gigawatts in offshore wind capacity by 2030 and 11 gigawatts by 2040.” He also mentions incentives for individual participation, including “programs like Moj Prad, promoting prosumer solar energy, and Czyste Powietrze, supporting energy-efficient home upgrades.” Additionally, “programs like Stop Smog and Moje Cieplo encourage low-carbon alternatives, which align with Poland’s goal of reducing coal use in residential heating and power generation,” Janicki adds.
Infrastructure Challenges
Despite progress, Poland faces legal and infrastructure hurdles that could impede renewable energy growth. “A significant barrier is the integration of new energy sources with the existing grid infrastructure,” Purgal says, identifying key challenges. “Poland’s transmission and distribution networks are largely adapted to coal-based energy, and integrating renewables requires substantial infrastructure investments.” Moreover, he notes legal issues as well. “Legal regulations are also not always aligned with new technologies, causing project delays. Efforts are underway to amend relevant laws, including the Renewable Energy Sources Act and the Energy Law, to facilitate the development of renewables in Poland.”
Focusing on grid integration challenges, Janicki reports that “Poland faces non-negligible challenges regarding renewables, especially as it expands offshore wind and solar. Poland’s power grid operator PSE has announced a USD 16 billion investment plan to support high-voltage transmission infrastructure, essential for transporting energy from coastal wind farms and nuclear power plants.” Highlighting the scale of the overhaul, Janicki says that “this massive infrastructure overhaul – the development of 4,850 kilometers of new energy lines, moving the current center of energy production from southern to northern Poland – along with necessary upgrades in grid capacity, requires strong technical and financial commitment and extensive workforce training for long-term viability.”
Additionally, international cooperation and public engagement are shaping Poland’s renewable energy strategy as well. “Cross-border cooperation, especially in offshore wind energy, is crucial,” Purgal notes. “Poland collaborates with Germany and Denmark to develop joint projects and create unified energy markets. Public consultations, particularly for infrastructure projects, are an integral part of the decision-making process, ensuring transparency and local community involvement in planned investments,” he adds. “This is especially important as wind farms can sometimes be burdensome for residents of neighboring areas.” On collaborations, Janicki reports that “Poland’s renewable strategy also benefits from regional collaborations and EU initiatives. Through the Baltic Declaration, Poland cooperates with Baltic neighbors to enhance offshore wind potential, while the Baltic Pipe, connecting Poland with Denmark and Norway, diversifies its gas supply.”
Poland’s Role in the EU’s Energy Transition
Ultimately, Poland’s energy transition is significant for the EU’s broader climate targets. “As an EU member, Poland plays a significant role in achieving common climate and energy goals,” Purgal says. “By implementing the objectives of the European Green Deal, Poland is committed to reducing greenhouse gas emissions and increasing the share of renewables in its energy mix.” Still, he acknowledges the depth of this challenge, stating that “Poland’s significant reliance on coal makes this transformation a major challenge. Cooperation within the EU, both politically and technologically, is key to ensuring the success of Poland’s energy transition.”
Janicki concurs with Purgal, adding that “Poland is both a critical player and is faced with unique challenges.” According to him, Poland’s energy transition is key to the EU’s overall climate goals. “Its plans to reduce coal reliance, expand renewable and nuclear capacity, and implement EU-aligned policies underscore its role in supporting the EU’s vision for a carbon-neutral future by 2050,” he concludes.
This article was originally published in Issue 11.11 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
