The European Commission has granted Poland a derogation allowing the country to keep its coal-fired power plants operating within the EU’s capacity market until the end of 2028, providing a temporary reprieve for Europe’s last remaining coal producer.
The decision enables the Polish government to extend financial support to coal units that exceed the EU’s emission cap of 550 grams of CO₂ per kilowatt-hour (kWh), a limit set under the EU Regulation 2019/943. The approval applies from 1 July 2025 through 31 December 2028 and covers both hard coal and lignite power plants.
The move offers a lifeline to Poland’s coal sector, which still underpins much of the country’s power generation. While the EU is accelerating efforts to phase out fossil fuels in line with the Paris Agreement, Poland remains heavily reliant on coal for electricity and heating — a stance that has increasingly set it apart from other member states.
Under the derogation, supplementary capacity auctions will be permitted if Poland’s main auctions fail to secure adequate generation capacity to meet the national reliability standard. These short-term contracts, limited to a maximum of one year (or six months for 2025), will be available to coal-fired units that exceed the CO₂ threshold.
However, the European Commission’s approval comes with strict conditions. Poland must:
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Update its National Resource Adequacy Assessment (NRAA) with a 10-year projection plan, analyzing plant closures, new constructions, and temporary shutdowns.
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Conduct detailed modeling to accurately estimate future electricity exports and imports based on sound economic assumptions.
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Demonstrate that maintenance and refurbishment schedules reflect actual operational plans and national conditions.
The Commission emphasized that the derogation should not undermine the EU’s long-term decarbonization objectives and is intended as a transitional measure to maintain grid reliability during Poland’s energy transition.
Poland’s dependence on coal remains significant, accounting for the vast majority of its power generation. Industry experts estimate the Polish state spends about €235,000 per hour subsidizing coal operations.
Elsewhere in Europe, countries including Germany, the Czech Republic, and Slovenia have accelerated coal phase-outs, selling or shutting down key plants to meet EU divestment and climate targets.
While global efforts continue to shift toward renewable energy, the Energy Information Agency recently reported that coal consumption could rise in several nations over the next decade due to slow renewable deployment and energy security concerns.
For now, Poland stands as the EU’s last coal stronghold, facing growing pressure to align its energy system with Europe’s green transition.
