Poland extends capacity market support for high-emission power plants until 2028 despite EU regulations. The move awaits European Commission approval.
Presidential Approval for Market Reform
Polish President Andrzej Duda has signed an amendment to the Capacity Market Act, allowing high-emission power plants to continue receiving capacity payments until the end of 2028. The law introduces four additional capacity auctions covering the second half of 2025 and delivery years 2026-2028. Although EU regulations prohibit support for power units emitting over 550 kg CO2 per MWh from mid-2025, Poland is utilizing a temporary exemption introduced in the revised EU Electricity Market Directive (EMD) of June 2024. However, the new provisions require approval from the European Commission before contracts can be executed.
Financial Impact on Consumers
The cost of extending capacity payments is estimated at PLN 563 million for H2 2025, PLN 3.33 billion in 2026, PLN 2.80 billion in 2027, and PLN 2.59 billion in 2028, amounting to a total of PLN 8.5-9 billion over four years. The capacity market, operating since 2021, ensures energy security by compensating power plants for readiness to supply electricity during peak demand. However, Polish consumers will bear the financial burden through additional electricity charges.