Poland, the European Union’s most coal-dependent nation, is looking to revise its plans to separate coal assets from state utilities, according to Jakub Jaworowski, the Minister of State Assets. The country’s energy transition has faced challenges, with the previous government failing to finalize the creation of a new entity, known as NABE, to handle coal assets. Jaworowski described the NABE plan as a “nuclear option” and hinted at the possibility of alternative approaches without specifying details.
Last week, shares of major utilities like PGE SA, Tauron Polska Energia SA, and Enea SA fell by as much as 7%following Finance Minister Andrzej Domanski’s statement that the next year’s budget has no provisions for the NABE spin-off. However, Jaworowski stressed that resolving the issue remains a priority for the current administration. He emphasized the need for a well-thought-out plan rather than rushing the process.
Poland’s energy transition, estimated to cost over $300 billion, is reliant on external financing, but environmental concerns are making banks hesitant to participate. With more than 60% of Poland’s electricity coming from coal-fired plants, the government faces the challenge of balancing power demand, costs, environmental considerations, and the needs of affected communities and workers. Jaworowski acknowledged that coal plants will eventually be phased out but stressed the importance of finding the right timeline.
