Following the Polish parliamentary elections in October 2023, Paulina Hennig-Kloska was appointed as the Climate and Environment Minister in the cabinet led by Prime Minister Donald Tusk. In this exclusive interview, the first to appear on an English-speaking news site, we discuss Poland’s future energy mix and the role of nuclear, geothermal and renewable gases within it, a just and fair phase-out of coal, the advancement of new mobility technologies and the importance of transforming the grids amid the growing renewable installed capacity.
Q: It is believed that nuclear energy and renewable energy sources (RES) are set to be the pillars of Polish energy policy. However, what role will other sources of clean energy play in Poland’s energy mix, especially when it comes to geothermal energy, bioenergy, and hydrogen?
A: At the Ministry of Climate and Environment, we are working non-stop to create regulations conducive to the development of the hydrogen economy. The European Union’s hydrogen strategy points to the important role of hydrogen in the decarbonisation of industry and transport. The support was mainly intended for the production of hydrogen by electrolysis and this means that it should be considered not so much as an energy source, but as a way to decarbonise sectors for which switching to electric power is difficult. It follows that a new RES capacity will need to be deployed to produce hydrogen, however, converting the hydrogen produced in this way into energy supplied into the power grid makes limited economic sense. The role of hydrogen in the energy context thus boils down to balancing the power grid. In contrast, it will be used extensively to decarbonise the industry and heavy transport. We are also supporting the development of municipal biogas plants, which is part of a broader policy of a circular economy and making our country independent of external energy supplies. Currently, the National Environmental Protection and Water Management Fund’s programme “Development of cogeneration based on municipal biogas,” proposes 1.5 billion Polish zlotys for energy generation precisely using municipal biogas and applications for this funding can be submitted until 30 June.
Q: What plan does the government have for the energy transformation in Bełchatów and the Łódź Voivodeship? The previous government (your predecessors) suggested that Bełchatów is a “likely location for the third nuclear power plant.”
A: Bełchatów is on the list of locations included in the “Polish Nuclear Power Programme”. However, I would like to point out that the process of selecting the second site for the nuclear power plant envisioned in the PNPP is still underway. This is a long-term process that will identify several locations for further in-depth specialised studies and public consultation.
Q: The European Parliament recently adopted a resolution in support of the geothermal energy strategy in the EU, which also called for support for regions during transformation, including coal regions transitioning to geothermal energy. What role will geothermal energy play in Poland’s energy mix, especially in the context of a just transition?
A: Utilising the Earth’s heat is an essential part of the process of the decarbonisation of district heating and ensuring fuel security for the Polish economy. Poland has a large potential for geothermal waters, with reservoirs found in approximately 50 per cent of the country’s area, particularly in central and northwestern Poland. The temperature of some of them exceeds 80 or even 90 oC. The development of geothermal energy as one of the renewable energy sources is, therefore, an important goal of our “Polish Energy Policy until 2040” and the “National Raw Materials Policy until 2050.” Our Ministry has prepared a “Multi-Year Programme for the Development of the Use of Geothermal Resources in Poland” with a development perspective until 2050, which will be updated and supplemented in the near future. Let me add, in the first call of the Priority Programme of the National Fund for Environmental Protection and Water Management “Accessing Thermal Water”, 15 geothermal exploration and prospecting boreholes received funding for implementation. Of these, four have already been completed, eight are under construction and preparatory work is underway in three cases. In the second call, 30 projects submitted by municipalities qualified for funding. Work on drilling these boreholes will span the next two or three years. Poland is also home to the largest geothermal research borehole in the world, the Bańska PGP-4 with a depth of 7 km, located in Szaflary, Podhale region. Under all Priority Programmes, a total amount of some 3.5 billion Polish zlotys has been and will be allocated for the development of geothermal energy in district heating. We will develop technologies related to the use of heat from water reservoirs, surface watercourses or mine water, and support new investments related to the use of earth heat in agriculture, such as in greenhouses, which have a high demand for thermal energy.
Q: When does the government plan to present a just transition plan for Silesia?
A: Poland’s electric power system was constructed on the basis of hard coal and lignite, so despite the ongoing transformation, a sudden decarbonisation of this system is impossible. It is impossible to move away from coal within a year, but it is certain that its share in the Polish electric energy mix will gradually decrease, as maintaining a high dependence on fossil fuels reduces the resilience of our economy to market price and supply fluctuations. Estimates of the rate at which we will decarbonise the system are contained in the following government documents, which are updated periodically: PEP2040 (National Energy Policy until 2040), NAPE 2021-2030 (draft National Energy and Climate Plan until 2030 was published in March 2024) The timetable for transitioning away from thermal coal is also included in the social contract made in 2021.
Q: Will the energy transformation be a tool for addressing regional inequalities in our country – is the government considering a dedicated support package for the development of RES and clean transportation in smaller cities and regions most affected by depopulation?
A: Energy transformation is a process that is spread out over years and its effectiveness depends on multiple factors. We are primarily concerned with social responsibility and justice, as well as climate and economic benefits. Investments in RES not only ensure the country’s energy security but are also an opportunity for new jobs and additional revenue for municipal budgets. This is a way to level the social, economic and climate playing field, as the funds raised will enable smaller towns to finance projects that improve the quality of life of their residents. Currently, one of the biggest challenges for the ministry is the transformation of Silesia and Greater Poland. Greater Poland, for example, is gaining new development opportunities by replacing coal with green technologies. Investments in wind and solar power have been underway for many years in municipalities such as Przykona and Margonin, for instance, and are proof that local governments are also actively involved in the energy transition.
The government offers a wide range of opportunities to support RES development. These include the auction system, the FIT/FIP tariff system, or subsidy programs for the development of civic energy such as the “My Electricity” programme. We will continue to develop these instruments. Equally strong emphasis will be placed on the development of distributed energy in the form of wind farms, photovoltaic farms, clusters, energy cooperatives and communities, biogas plants and biomethane plants. We are working on the proper programming and positioning of EU funding, coming not only from the National Plan for Recovery and Increasing Resilience until 2026 (up to 3.1 billion euros), but also the mobilisation of funding under the “European Funds for Infrastructure, Climate, Environment 2021-2027” Programme (up to 1.8 billion euros). The beneficiaries of these funds are especially urban residents. The National Environmental Protection and Water Management Fund (NFOŚiGW) is subsidising green projects aimed at improving air quality and including thermal modernisation of buildings under the “Warm Housing” Programme for multi-apartment buildings and the “Stop Smog” Programme for energy-poor residents of municipalities, including urban municipalities. The Ministry of Climate and Environment is also coordinating work on a draft act amending the Environmental Protection Law and some other laws. This draft stipulates the obligation to develop municipal climate change adaptation plans for cities with a population of 20,000 or more. Cities will also be required to report on the implementation of adaptation measures included in the plan on a 2-year basis. Local government units will be able to obtain EU funding for the development and implementation of urban adaptation plans, the development of green-blue infrastructure and sustainable rainwater management systems involving green-blue infrastructure, and other initiatives. We believe that all these measures will allow the energy transition process to be carried out smoothly and at the same time effectively, and regional inequalities to be redressed.
Q: According to our information, the Polish Alternative Fuels Association (PSPA) has provided you, as well as your colleagues in the Polish government, with a White Paper on New Mobility document with 120 proposed legal changes. Which of the listed proposals does the ministry plan to address in the near future (for example, expanding charging infrastructure – can we expect closer cooperation with local governments)?
A: I confirm that we have received the New Mobility White Paper from the Polish Alternative Fuels Association and are analysing the demands contained therein. There are certainly some that will be included such as separation of the role of the operator of a publicly accessible charging station from that of the owner, changes to the regulations on technical tests conducted by the Office of Technical Inspection, or changes to the regulations on clean transport zones. Many of the demands address the issue of developing a distribution network for charging stations. However, it is worth noting that the economy around us is in the process of transitioning to zero-carbon, which in many cases means electrification. However, limiting the problem only to charging stations is a shallow approach. Transmission and distribution network development activities have been carried out continuously for years and their scale is enormous. The costs are also huge. Therefore, it is not possible to expand solely for charging stations, because the needs of RES sources are just as important. For some, probably, more important. We try to ensure synergy between all the necessary activities. We cannot, for instance, introduce regulations that apply to the transmission network or expressways, because doing so will disincentivise the public from making a change.
We have managed to free up both EU and NRRP funds, and a large part of them will be used to develop our country’s power grid. This will allow us to make network investments with external funds, because, it is worth emphasizing, some of the changes advocated by PSPA, if not for our efforts to secure funds, would result in a financial burden on society, which, given the level of energy prices, is unacceptable.
Q: In the context of the coal phase-out, what plan does the ministry have to increase energy efficiency in buildings?
A: Energy efficiency is undeniably closely linked to the thermal modernisation of buildings and the replacement of fossil fuels with a more efficient, yet environmentally friendly heat source. To this end, the “Clean Air” Priority Programme was created to subsidise the replacement of coal-fired boilers and the possibility of thermal modernisation of single-family housing. Since the cost of replacing such a number of heating devices is significant and no country would be able to cover it with domestic funds, we had to obtain EU funding for its implementation. Therefore, carrying out thermal upgrading activities under the Programme will be done using funds from the National Recovery and Resilience Plan. To the same end, necessary changes will also be made to the “Clean Air” Programme – its budget will be supplemented by up to 3.1 billion euros from the NRRP. At the same time, as of December 2022. The programme is co-financed with funds made available by the Polish Development Fund (PFR) to pre-finance investments planned in the NRRP. The total amount donated by the PFR for this purpose so far is more than 2,079 million Polish zlotys. That is not all, as we are constantly working at the ministry to improve the program, especially on eliminating the possibility of subsidising the purchase of inefficient heat pumps. We are also considering the possibility of introducing the need for comprehensive thermal modernisation of the building before purchasing and installing a heat pump.
Q: In the near future, can we expect new legislative proposals regarding the adaptation of the grid to a significant increase in renewable energy connections, as well as the development of energy storage?
A: Poland will consistently develop RES, which are key to successfully carrying out the energy transition. Currently, the installed capacity of RES is close to 29 GW, but by 2030, in less than six years, it will exceed 50 GW. However, the rapid development of RES must be followed by investments in network infrastructure. This is a prerequisite for realising the potential of RES. It is the grids that currently represent the bottleneck in achieving our energy transition ambitions. We have tools such as cable-pooling and direct line to optimise not only capital costs but also to utilise the existing network connection capacity. We will develop these instruments at the same time looking for new solutions, for example, energy storage, which will allow us to increase the flexibility of grid operation and manage surplus energy produced by RES installations for the electrification of further branches of the economy or production of green hydrogen, among other measures. Equally important to us is the reduction of administrative barriers. Legislative work is currently underway that will shorten procedures of this type, and thus affect the acceleration of investment in zero-emission generation sources. The pace of new installations, investments in the power grid and energy storage will determine how quickly green energy will power households and the entire economy. This is a prerequisite for strengthening energy security, building a competitive advantage for our businesses and increasing opportunities to attract new investments.