Trends in coal use – global, EU and Poland

Abstract

That aim of this paper is to compare trends in global, European use of coal with tendencies in Poland, one of heavy coal dependent countries. Polish power generation is unique among OECD countries, the share of both hard coal and lignite in power generation reaches 81% [1]. Climate policy of European Union is to phase out intensive greenhouse gases sectors, thus to transform Polish power generation into less carbon intensive. Although such policy is generally accepted in Poland, the paste and practically proposed regulation that excludes coal generation from capacity mechanisms, is considered as threat to energy security. Coal is the base for generation for one simple reason, abundant in European scale hard coal reserves and significant capacities in lignite. Natural gas reserves allow to supply about 1/3 of consumption, but prices and supplies dependent hitherto on contracts with GAZPROM did not allow to develop significant generation capacities. Renewable resources are limited, there is not much possibilities for hydro, wind and solar. Poland is also one of the countries of poor air quality, traditional coal based space heating systems plus obsolete car fleet generate vast emissions, especially during the winter. Only recently this became top priority of environmental authorities. This situation is subject to transformation, government, managers are aware that the role of coal needs to be decreased, but there are two main questions, the paste of transformation and the future energy mix. The paper attempts to answer the question whether the expected changes in Polish energy mix are comparable or differ from the global and European tendencies.