Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Poland Prioritizes Cheaper Power in Shift Away From Coal

Don't Miss Out —
Follow us on:

April 24 (Bloomberg) -- Poland’s main priority in revamping its energy policy is to reduce the cost of electricity as it shifts away from its reliance on coal-fired generation, the nation’s environment minister said.

Marcin Korolec said he’d like to phase out subsidies for both renewable energy and fossil fuels, though the country also needs to replace power stations some of which are more than 40 years old.

“We are in quite a big crisis,” Korolec said today at a Bloomberg New Energy Finance conference in New York. “We need new investment, but we are living in this paradigm of expensive energy prices. We are facing tremendous questions. Technology will answer the question, and price will answer it.”

The comments indicate how Prime Minister Donald Tusk’s government will balance demands to meet European Commission environment rules while limiting electricity costs. The Commission has censured Poland for its delays in implementing mandates for renewable energy, and the government this month announced plans to reduce subsidies for clean power.

Poland was one of the nations that blocked the commission’s proposal for boosting the price of carbon dioxide emissions. It’s also hosting the annual round of United Nations global warming talks, which start in November in Warsaw.

Korolec expressed skepticism about technology that captures carbon from smokestacks and stores it underground, called CCS, something that could scrub pollution from Poland’s coal plants. Utility scale CCS plants haven’t opened yet.

View on CCS

“CCS is a beautifully romantic story, but I don’t see it,” Korolec said during a panel discussion. “It is cheaper to build a gas plant.”

David Sandalow, assistant secretary for public policy at the U.S. Energy Department, agreed that even the latest carbon capture technologies are too costly to be competitive with other forms of reductions such as energy efficiency and wind power.

“It’s still expensive to strip out carbon from exhaust streams,” Sandalow said on the panel. “We believe it’s important because we need some form of CCS to have an impact on climate change.”

Korolec suggested he’d like to scrap any form of support for energy. “Maybe we have to introduce a phase-out of energy subsidies in all areas, a phaseout of fossil fuel and also renewable energies and concentrate on those technologies which are commercial,” he said.

To contact the reporter on this story: Christopher Martin in New York at cmartin11@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.