Belchatow coal-fired power plant

The Polish government is working on legislation designed to help the country’s coal –fired power producers invest in new generating capacity.

The energy ministry’s Krzysztof Tchorzewski said at an energy conference this week, “The ministry has startedBelchatow coal power plant to work on the capacity market and once we have the draft bill we will address the European Commission. I think that the draft bill will be ready after the summer holidays.”

Coal power plants currently generate more than 80 percent of electricity in Poland, but many are old and need to be replaced to avoid power shortages in the future.

State-owned power plant operators have said wholesale electricity prices are too low to justify new investments so the government is working on a scheme to provide them with incentives. But this will need approval from the European Commission as it might count as state aid.

The scheme under consideration would pay producers to keep power plants online to generate electricity as and when needed.

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