POLAND Law and Practice Contributed by: Tomasz Młodawski, Krzysztof Cichocki, Łukasz Wyszomirski and Krzysztof Fasula, Sołtysiński Kawecki & Szlęzak
Cross-border electricity flows are triggered by the price spreads and algorithms applied within the SDAC and SIDC shared books; this means that the electricity is typically exported from the country (bidding zone) with lower prices to the country (bidding zone) with higher prices – up to the available transmission capac- ity. This model is designed to maximise economic efficiency and promote price convergence between markets. 2.3 Supply Mix of Electricity Poland’s electricity generation mix in 2025 remained heavily dominated by fossil fuels, though the share of renewables has grown substantially in recent years. Hard coal and lignite together accounted for approxi- mately 52% of gross generation, operated primar- ily by the state-controlled utilities PGE, Enea and Tauron. PGE’s Bełchatów lignite complex (the larg- est single-site CO₂ emitter in Europe) and the Turów plant account for the majority of lignite-fired output. Natural gas plays an increasing role as a transitional and balancing fuel, contributing approximately 13% of generation. Renewable energy sources together accounted for approximately 32% of the mix, with onshore wind share at 14.2%, the solar PV share at 12.1%, the bio- mass share at 4.5%, and the hydropower share at 1.5%. The rapid expansion of solar PV – from near- zero in 2015 to over 23 GW of installed capacity by late 2025 – has been the single most significant struc- tural change in the generation mix in recent years, resulting also in significant volatility of prices and non-market redispatching affecting solar generation volumes. Onshore wind capacity stands at approxi- mately 11 GW and is expected to grow further as the liberalised planning framework takes effect. Poland remains one of the more carbon-intensive power systems in the EU, though the trend is clearly downward as ageing coal capacity retires and vari- able renewable generation expands. The country is broadly self-sufficient in electricity on an annual basis; however, the growing share of weather-dependent generation and the planned retirement of coal units will progressively increase the importance of intercon- nectors, demand-side flexibility and energy storage in maintaining system balance.
The government’s updated National Energy and Cli- mate Plan sets a target of 32.1% for the share of renewables in gross final energy consumption by 2030, as Poland’s contribution to the EU-wide 2030 renewable energy target. This target encompasses renewable energy consumption across the electricity, heating and cooling, and transport sectors. Accord- ing to current projections, the share of renewables in gross final energy consumption may reach approxi- mately 61.7% by 2040. In the electricity sector spe- cifically, Poland is projected to achieve approximately 65% of renewables in final electricity consumption by 2040. 2.4 Market Concentration Limits There are no statutory caps on the percentage of gen- eration capacity or supply volume that a single entity may hold in Poland. Market concentration is instead governed by the general competition law framework established under the Act on Competition and Con- sumer Protection (“UOKiK Act”), under which a market share exceeding 40% gives rise to a rebuttable pre- sumption of a dominant position. The holding or acqui- sition of a dominant position is not prohibited as such, but the abuse of a dominant position is prohibited. Market concentration is assessed on a case-by-case basis rather than by reference to fixed sector-specific thresholds, and the relevant geographic market may extend beyond Poland, given the country’s integration into the European Internal Electricity Market. The principal laws governing market concentration in the electricity sector are: • the Act on the Protection of Competition and Con- sumers, which establishes the general competition law framework applicable to mergers, acquisitions, anti-competitive arrangements and abuse of domi- nance; and • the Energy Law, under which the President of ERO monitors the functioning of the electricity market and the level of competition within the sector. The President of UOKiK is the principal authority responsible for enforcing competition law rules relat- ing to market concentration and abuse of dominance, and has the power to:
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