Poland’s energy market

Low electricity generation costs led to a shift of production towards lignite-fired sources (up by approx. 2.5 percent), at the expense of gas-fired power plants (down by approx. 30 percent).

In 2013 signs of economic recovery were visible, both in the euro zone as well as in Poland. A strong decline of inflation rate, down to less than 1 percent in Q4, and a significant drop of interest rates were important elements of the 2013 economic landscape. These two factors had a stimulating impact on the consumers’ demand. Ultimately 2013 GDP growth rate was 1.6 percent versus 2 percent reached in 2012.

Economic growth had a small impact on increases of production and consumption of electricity. Full year 2013 electricity production in Poland was 162.5 TWh. According to the transmission system operator (PSE S.A.) 2013 saw an insignificant, just by approx. 0.6 percent, growth of domestic electricity consumption while production rose by approx. 1.76 percent. The electricity surplus was exported to neighboring countries and the volume exported in 2013 was almost 60 percent higher than in 2012. Low electricity generation costs led to a shift of production towards lignite-fired sources (up by approx. 2.5 percent), at the expense of gas-fired power plants (down by approx. 30 percent). No significant changes to the position of generators using hard coal (up by approx. 0.1 percent) were observed. 2013 was another year that saw rising installed capacity of wind farms – reaching 3,462 MW at the end of December versus 2,580 MW a year earlier (up by 41 percent).

GROSS PRODUCTION AND CONSUMPTION OF ELECTRICITY (TWH) IN 2003-2013

YearGross production of electricity in Poland (TWh)YearConsumption of electricity in Poland (TWh)
2003 151.6 2003 140.5
2004 154.2 2004 144.0
2005 156.9 2005 144.8
2006 161.7 2006 149.8
2007 159.3 2007 154.1
2008 155.5 2008 154.8
2009 151.7 2009 148.7
2010 157.7 2010 156.3
2011 163.5 2011 158.3
2012 162.1 2012 159.2
2013 162.5 2013 157.9

Source: Energy Market Agency, Polskie Sieci Elektroenergetyczne (TSO)

electricity production

 2013 (GWH)Percentage
Hard coal-fired power plants 84 566 52.05 percent
Lignite-fired power plants 56 959 35.05 percent
Industrial power plants 9 171 5.65 percent
Wind farms 5 823 3.58 percent
Gas-fired power plants 3 149 1.93 percent
Hydroelectric power plants 2 762 1.69 percent
Other renewable power plants 72 0.05 percent
Total production 162 501 100 percent

Source: Own calculations based on PSE’s data

PRODUCTION OF ELECTRICITY FROM RES (TWH) IN 2003-2013*

RES source type20032004200520062007200820092010201120122013*
Wind farms 0.124 0.142 0.135 0.257 0.472 0.806 1.045 1.823 4.599 3.127 4.295
Hydroelectric power plants 1.672 2.081 2.176 2.029 2.253 2.153 2.376 2.922 2.317 2.032 2.108
Biomass co-firing 0.250 0.620 0.877 1.314 1.797 2.752 4.282 5.243 6.000 6.364 0.786
Biogas-fired power plants 0.056 0.082 0.104 0.117 0.162 0.221 0.301 0.364 0.431 0.529 0.515
Biomass-fired power plants 0.015 0.148 0.467 0.504 0.546 0.561 0.601 0.636 1.055 1.618 0.092
Solar power plants - - - - - - 0.000 0.000 0.000 0.001 0.001

*The above data is related to volumes of electricity generated from RES that were covered by certificates of electricity origin issued by the President of Energy Regulatory Office (ERO)

Source: ERO, GUS (Central Statistics Office)