Poland seeks to nationalise coal plants so firms can finance green investments

(EurActiv, 22 Apr 2021) The Polish government is planning to nationalise dozens of coal plants and use public money to keep them running to allow state-owned energy companies to invest in greener alternatives. EURACTIV’s media partner, Climate Home News, reports.

The proposal by the ministry of state assets is part of negotiations between the government and energy companies to restructure the ailing coal sector.

Under the plan, 70 lignite coal units, which generated more than half of Poland’s electricity in 2020, will be purchased by the state and handed over to a single state-run National Energy Security Agency (NABE).

In a statement, the ministry said this would enable a “gradual and long-term transformation of the power sector” by replacing coal with low-carbon and green sources. In 2020, Poland’s share of electricity generated from coal dropped below 70% for the first time.

The merger of coal assets into a single entity is designed to give three state-owned energy companies – PGE, Enea, and Tauron – fiscal space to develop clean energy sources.

Jacek Sasin, Poland’s deputy prime minister and minister of state assets, said banks were becoming reluctant to finance companies with carbon-intensive assets in their portfolio. He added pollution allowances required by the European Union to burn coal had become more expensive than the coal itself.

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EurActiv, 22 Apr 2021: Poland seeks to nationalise coal plants so firms can finance green investments

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