Poland Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in poland, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Energy Sector
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Poland’s energy mix is undergoing a transformation as the Government works to reduce its reliance on coal, enhance energy security, and meet climate goals. Poland remains one of the most coal-dependent countries in the EU, however the government aims to decrease coal’s share in the energy mix and increase investments in renewable energy sources. 

The government is also advancing its nuclear energy plans. Poland is committed to modernizing its energy sector, enhancing energy security and meeting environmental objectives, while balancing economic and social considerations. The planned amount of expenditure for the green transformation in Poland is around 700-800 billion PLN by 2030, meaning each year 120-150 billion PLN will be allotted for this purpose.

Leading Sub-sectors 

Power Generation 

In 2024, the share of coal in electricity generation was 56.2% (down from 70.7% in 2022 and 4.3 p.p. less than in 2023). Production from coal fell by 5.4 TWh (-5.4% y/y): from hard coal it decreased by 6.7 TWh (-10.2% y/y), and from lignite increased by 1.3 TWh (+3.6 % y/y). 

Production from renewable energy sources (RES) was 29.4%, 2.3 p.p. more than in 2023. RES production reached record levels of 49.8 TWh. In 2024, more electricity was produced from renewables than from lignite (which amounted to 36 TWh).

Production from wind reached 24.5 TWh (14.5% share in electricity generation). Production from natural gas increased by 3.9 TWh and reached its highest level ever – 20.6 TWh (12.2%), thanks to new gas units in Gryfino and lower gas prices.

Among RES, production from photovoltaics (+34.4%, y/y) and wind (+5.5% y/y) grew most rapidly. Wind power for responsible for almost half of RES generation (49.1%), photovoltaics 30.6%, and biomass 10.8%.Pumped storage power plants recorded a drop in production in 2024 (23.9% less than in 2023) most likely due to the shutdown of generators at the Porąbka-Żar power station for modernization.

Electricity consumption in 2024 was 171.3 TWh. 85.1% was end-user consumption, and the remaining 14.9% was CHPs’ and power plants’ own consumption and losses in transmission and distribution networks. Industry was the largest end user of electricity. 

In 2024, Poland exported 13.25 GWh of electric energy and imported 15.21 TWh. In 2024, Poland imported electricity mainly from Germany and Sweden and exported to the Czech Republic and Slovakia. Peak power demand in 2024 reached 28.5 GW. This is a 1.2 GW increase from 2023, due to electrification of the economy. 4.7% of national electricity was produced by prosumers. Self-consumption amounts roughly to 1.5% of national consumption. 

Most Polish coal-fired power plants were built between 1960 and 1980 and now must be retired and replaced. Poland’s newest and the last coal-fired power plants are Kozienice (1,000 MW) and Opole (2x900 MW, Jaworzno (910 MW) and Turów (450 MW) commissioned in the early 2020s. Subsequent power plant investments in Dolna Odra (2 x 700 MW) and Ostrołęka (750 MW) will utilize natural gas sources. 

European Union Green Deal and FIT for 55 Package

The European Green Deal aims for a 55% reduction of greenhouse gas emissions by 2030 (compared to 1990 levels) and full climate neutrality by 2050. For the energy sector and the Polish economy, it provides a chance to modernize, innovate, and invest. The EU budget for 2021-2027 provides €137 billion ($161 billion) in subsidies and €34.2 billion ($40.2 billion) in repayable aid for Poland, making it the biggest net EU beneficiary among all the member states. EU Cohesion Policy funds support Poland’s green transition. In the years 2021-2027, €17.9 billion ($21 billion) will be invested in renewable energy sources and circular economy. The funds will also support with €20 billion ($ 23.5 billion) the decarbonization of the transport sector. Poland will receive €11.4 billion ($ 13.4 billion) from the Social Climate Fund, and about €3.85 billion ($ 4.5 billion) under the Just Transition Fund to support climate transition in the coal regions of Silesia and southern Poland. The Polish government estimates that the energy transformation in Poland requires about $250 billion. By 2030, Poland’s energy mix is to decrease to at least 56 percent reliance on coal.   

Nuclear Energy

Poland is in the process of building a nuclear power program and signed an Intergovernmental Agreement on strategic nuclear energy partnership with the United States in 2020. The Polish government plans to build two nuclear power plants (six total reactors) with 6-9 GW of total capacity. The first reactor is scheduled to begin operating in 2036, with the remaining five units coming online every two years until the project is completed in 2043. Poland is also considering how Small Modular Reactors (SMRs) can be deployed as part of the energy mix. Several energy intensive industrial companies, including state-controlled companies, are considering investments in SMRs. 

Renewable energy

The EU Renewable Energy Directive EU/2023/2413 established a new binding renewable energy target for 2030 of at least 42.5%. In 2024 production from renewables reached a record 29.4% of the mix - reaching installed production capacities of 28.6 GW. Source: Yearbook - Energy Data - Forum Energii.

According to the National Plan for Energy and Climate forecasts for 2021-2030, the capacity of energy from renewable sources in the national mix will increase from 28 GW in 2025 to 50 GW in 2030. Poland plans to increase its renewable power capacity through the development of offshore wind farms. By 2027, Poland expects 6 GW power capacity to be generated by offshore wind. Poland has looked to the world’s largest players in renewable energy to help them develop the market.

Photovoltaics

Photovoltaics continues to be the clear leader among all other RES in Poland in terms of growth rate and installed capacity. According to the report published by the Renewable Energy Institute, at the end of the first quarter of 2025, Poland reached 21.8 GW of installed PV capacity. Microgeneration units accounted for 59% of installed PV capacity, and PV farms and small systems accounted for 41 %. The market has undergone a signification transformation; large farms above 1 MW play a dominant role and are the main driver of PV growth, accounting for half of new capacity. Photovoltaics accounted for 64% of Poland’s RES capacity, and its share of RES power generation rose to 31.5%. Poland remains at the forefront of the European Union in terms of PV capacity increase, ranking 5th in 2024. In 2024, 141,500 new microgeneration units with a capacity of 1.43 GW were connected to the grid and the governmental “My Electricity” program supported 53,500 PV installations. Overall, there has been a slowdown in this group in recent years. It was offset by an increase in installed capacity in small installations and farms above 1 MW. 

With the expansion of PV, Poland has occasionally been forced to temporarily curtail the operation of grid-connected PV farms, especially during generation peaks. This phenomenon mainly affects non-micro-PV installations (those are curtailed by over-voltage automation) and occurs during periods of highest productivity, especially around noon, initially on holidays because of a deep drop in energy demand, and now also on weekdays. With a relatively saturated market, solutions that provide a more staggered energy production profile throughout the day will become important. 

The Polish government introduced strong regulatory support, and there are subsidies for PV systems for on-site consumption as well as for utility-scale facilities. Solar power systems with less than 50 kW also benefit from a reduction (23% to 8%) in value added tax (VAT). The purchase and installation costs for PV systems can also offset income and reduce personal income tax. Additionally, state-supported auctions are used to fund large-scale installations.

Wind: Onshore and Offshore

There are more than 1,200 installations in Poland using wind as a renewable energy source. Their installed capacity is over 7,185 MW, which is about 65% of installed capacity in all types of renewable energy installations working in Poland. Nearly 160 further wind installations are under construction, with total installed capacity of approximately 2,500 MW. The amount of energy produced from wind sources and introduced into the Polish power system is systematically increasing. 

To meet the goal of 21% of RES by 2030, the Polish government is planning extensive offshore wind farm development in the Baltic Sea. State-controlled companies are investing in offshore wind farms in partnership with foreign companies. The first auction for support for Phase II offshore wind farms is scheduled for December 17th, 2025, and will cover up to 4 GW of capacity. The Polish Wind Energy Association (PSEW) estimates that the Polish energy system will require 1,000 MW of newly installed wind energy capacity each year to comply with EU targets.

Energy Storage

Poland’s shift toward renewable energy has created a need for energy storage solutions. Through power market auctions for 2021-2028 and supplementary auctions for 2021-2025, battery energy storage was contracted in the amount of 9.5 GW power capacity and in December 2024’s power market auction alone, a record 2.5 GW of storage capacity was contracted.  

In the spring 2025, Poland rolled out a $1.09 billion energy storage co-financing program, backed by the EU’s Modernization Fund, that is set to transform the country’s grid infrastructure. This subsidy scheme is targeting over 5 GWh of new storage capacity by 2028. The program aims to improve the stability of Poland’s National Energy Network (KSE) and bolster the country’s energy security by supporting the construction of medium to large-scale electricity storage facilities. Eligible projects must have a capacity of at least 2 MW/4 MWh, connected to the distribution and transmission network at all voltage levels.

Hydrogen

In 2021, the Council of Ministers adopted the Polish Hydrogen Strategy until 2030 with an outlook until 2040. The Strategy specifies three key areas: industry, the power generating sector, and transport, which, when completed, will enable Poland to become a beneficiary from hydrogen technologies.

Hydrogen is a priority in Poland in alignment with European Union energy policy. The European Union (EU) aims to increase the use and importance of electrolysis generated hydrogen in the energy and transport sectors. Poland produces 1/3 of a total amount of hydrogen produced in Europe. Poland has a hydrogen strategy in place, and the construction of two green hydrogen electrolysis plants in Konin and Oława has been accomplished. An amendment to the Energy Law, conventionally called the Hydrogen Law, entered into force in January 2025 establishing a regulatory framework for the development of hydrogen economy in Poland.

Natural Gas

In 2024, nearly 17 billion cubic meters of gas were transmitted through the transmission system pipelines managed by Gaz-System. Domestic gas storage facilities had a capacity of 3.33 billion cubic meters at the end of 2024. Poland consumes about 20 billion cubic meters (bcm) of gas annually. Before the 2022 Russian invasion of Ukraine, Poland relied mostly on Russia for its gas supply. The gas port in Swinoujście, along with the Baltic Pipe, is a key source of gas supply for Poland, capable of covering about 40% of the country’s demand when fully utilized. Poland opened its first LNG terminal in Swinoujście in 2015. Since then, Poland has also increased its imports of LNG from Qatar and the United States. Poland’s LNG terminal in Swinoujście is the first onshore regasification facility in the Baltic Sea region. This facility receives shipments from the United States and Qatari suppliers under long-term contracts, as well as a series of auxiliary deliveries secured via the spot market.

In September 2022, Poland inaugurated the Baltic Pipe, natural gas pipeline that will enable Poland to import up to 10bcm of gas annually from Norway. The project, supported by the Trans-European Networks for Energy, enhances the diversification of gas supply in Central-Eastern Europe and the Baltic States by opening a new import route from the North Sea to the EU. 

In addition, in 2024 the Polish government contracted a Floating Storage Regasification Unit (FSRU) that is to be operational early 2028; it will be in the Bay of Gdansk with plans for possible expansion. This investment will allow Poland to accept delivery of 12 bcm of liquefied natural gas per year. In addition to transporting liquefied gas, the tanker would also enable reloading and bunkering (refueling) of LNG-powered vessels. 

Poland also has its own reserves of natural gas. Domestic natural gas production currently covers approximately 20% of demand. In July 2025, a Canadian company’s discovery of a large oil field near Swinoujście in the Baltic Sea gained significant attention, but it is one of many exploration projects in Poland. By June 2025, six wells had been completed, and five more were underway. In 2025, 44 exploration licenses for oil and natural gas were issued, with 182 active production licenses. Poland’s largest natural gas deposits are Bronsko (10.8 billion cubic meters) and Przemysl (8.7 billion cubic meters).  The Polish Geological Institute continues to monitor exploration activities closely.

Web Resources

  • Energy Information Administration
  • Ministry of Climate and Environment
  • Energy Regulatory Agency
  • Energy Market Agency 
  • Polish Committee of Electric Energy
  • Association of Polish Power Plants
  • Polish Association of Professional Combined Heat and Power Plants
  • Polish Power Transmission and Distribution Association
  • Chamber of Industrial Power Plants and Energy Suppliers
  • Polish Chamber of Power Industry and Environmental Protection
  • Association of Energy Trading
  • Polish Wind Energy Association
  • Polish Economic Chamber of Renewable and Distributed Energy
  • Polish Offshore Wind Energy Society
  • Polish PV Association
  • Chamber of the Natural Gas
  • Polish Energy Storage Association
  • Institute for Renewable Energy 

For more information about the Energy Sector, please contact:  
U.S. Commercial Service Poland
Commercial Specialist: Katarzyna Szyndel
E-mail:  Katarzyna.Szyndel@trade.gov

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