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    Poland Secures Derogation for Coal Power in EU Electricity Market Reform

    Estimated reading time: 2 minutes

    In a recent development, Poland has successfully negotiated a derogation allowing the continued use of coal power in its energy mix until the end of 2028, as part of the EU’s electricity market reform. This achievement is seen as a strategic move to ensure energy security in the face of potential power shortages, particularly given the challenges posed by the ongoing Russian aggression in Ukraine.


    Equal Treatment for Nuclear Energy

    Poland’s Minister of Climate and Environment, Anna Moskwa, emphasized that the reform will not discriminate against nuclear energy, ensuring it receives equal treatment alongside other zero-emission technologies. This is significant in light of Poland’s plans to invest in nuclear power as a key component of decarbonizing its energy system in the coming decades.

    The EU’s proposed Electricity Market Design (EMD) aims to introduce more long-term stability in energy pricing and promote renewable energy sources. It includes mechanisms such as two-way contracts for difference (CfDs) and Power Purchase Agreements (PPAs) to support renewable energy and secure minimum profits for producers.

    Enhancing Grid Flexibility and Consumer Choice

    The reform also focuses on enhancing the flexibility of energy grids and expanding the role of the capacity market in the EMD. It encourages the development of energy storage systems and offers consumers more options, such as fixed-rate and time-limited electricity contracts, as well as dynamic pricing arrangements.

    Poland’s successful negotiation of a derogation in the EU’s electricity market reform is aimed at ensuring energy security without compromising climate goals. This development, coupled with equal treatment for nuclear energy and the broader EMD proposals, signifies a significant step toward a more resilient and sustainable energy future in the EU.

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