Energy transformation will protect Poles from rising energy prices

Despite the destabilization of electricity prices due to the energy crisis caused by the war in Ukraine, thanks to the government program "Solidarity Shield," Poles have not experienced significant price increases. 

Onet.pl reported.

However, freezing tariffs is a temporary measure, and the key to limiting the future increase in energy prices lies in the transformation of the energy market.

The necessary modernization and expansion of the distribution network are also crucial to prepare it for increased energy demand and the integration of new distributed generation sources from renewable energy.

Actions that will effectively reduce prices can be achieved through the involvement of state-owned companies such as PGE, which will allocate a total of 10 billion zlotys for freezing energy prices this year. Tauron will contribute an additional billion, and Enea has already allocated nearly 1 billion zlotys in the first quarter alone. These funds subsidize household bills, allowing them to pay approximately 40% of the market price for electricity. The financing from state-owned companies and, as a result, the protection program, also play a crucial role. Last year, the PGE Group paid a total of 26.5 billion zlotys (almost 6 billion euros) in taxes.

However, freezing energy prices is a temporary measure aimed at protecting Poles from the consequences of the energy crisis caused by Russia's aggression. Ultimately, the key to limiting the growth of energy prices in the future is the implementation of energy transformation in the Polish market.

Energy transformation is the only way to permanently stop the increase in energy production costs. Firstly, by generating electricity from renewable sources, the country becomes independent of foreign energy resources. Secondly, Poland will not have to bear high costs for greenhouse gas emission quotas. In 2021 alone, one energy company spent 11.6 billion zlotys on purchasing them, and in 2022, this amount reached 20.3 billion zlotys.

Therefore, the investments already made in offshore wind farms, photovoltaic farms, and replacing heat sources with low-emission ones are of great importance for Poland's development prospects. Equally important is the necessary modernization and expansion of the distribution network to prepare it for increased energy demand and the integration of new distributed generation sources from renewable energy.

According to experts' estimates, investments in distribution networks, modern distribution, and renewable energy will absorb up to 600 billion zlotys (132 billion euros) over the next 7 years.

This means that support for energy companies, which bear the burden of Poland's energy transformation, is necessary. Only with additional funds, primarily from the European Union, as well as the involvement of their own profits, can the investment gap resulting from Poland's goal of achieving climate neutrality be filled.

In the autumn of 2022, Russia began regularly shelling Ukraine's energy infrastructure. In December, due to Russian shelling, half of Ukraine's power system was taken out of operation. And after the attacks on December 16, a state of emergency was declared in the energy sector.

The Russians launched over 1,200 missiles and drones at our country's power system.

More than 200 of them hit their targets. 50% of power plants and over 40% of the network suffered significant damage. Approximately 12 million Ukrainians were left without electricity every hour.