The development of renewable energy in Poland remains strong. According to Polskie Sieci Elektroenergetyczne S.A. (PSE), installed capacity reached 21,618 MW in solar photovoltaic energy and 10,852 MW in wind energy in early 2025. This brings the country’s total renewable generation to over 32 GW, reinforcing its position in the energy transition.

Since Poland exceeded the 30 GW mark in October 2024, the expansion of new capacity has continued at a rapid pace. However, this growth has also introduced structural challenges in the electricity market, particularly regarding price fluctuations and grid stability.

The Polish electricity market operates with dynamic pricing, meaning that the cost of electricity fluctuates based on real-time supply and demand. According to Konrad Purchała, Vice President of PSE, “the increasing share of renewable energy in the electricity mix is creating greater price volatility compared to previous years”.

Price fluctuations have intensified as intermittent sources such as wind and solar account for a larger share of the electricity supply. During periods of high renewable generation, prices can drop to negative levels, impacting the profitability of producers. Conversely, when solar and wind availability is lower, prices can surge, creating uncertainty for consumers and businesses.

The role of the electricity market in new investments

Despite the growth of renewable energy, the Polish electricity market presents risks that could slow down future investments. Price volatility and the lack of large-scale energy storage mechanisms make it difficult for investors to plan new projects.

According to Purchała, “dynamic pricing can encourage consumers to adjust their demand based on the availability of renewable energy”, which would help stabilise the system and optimise the use of clean energy.

To ensure the long-term sustainability of renewable expansion, key actions should include:

• Strengthening price compensation mechanisms to protect renewable energy producers from severe losses.
• Developing energy storage systems to balance supply and demand fluctuations.
• Implementing strategies that promote demand flexibility to optimise grid stability.

Challenges in integrating additional renewable capacity

The rapid growth of renewable energy has tested Poland’s electricity infrastructure. “The power system must adapt to a more decentralised and flexible generation model to avoid grid congestion”, Purchała states.

The main challenges for integrating additional renewable capacity include:

• Limited transmission capacity: The existing grid is not always able to handle large volumes of decentralised renewable generation.
• Lack of incentives for energy storage: Without effective storage solutions, excess production during peak renewable generation hours cannot be efficiently utilised.
• Need for digitalisation: Advanced technologies could enhance the real-time management of supply and demand, reducing system instability.

Comparison with other European countries

While Poland has made significant progress in renewable energy, it still faces challenges compared to other European nations. Germany, for example, has surpassed 140 GW of combined solar and wind capacity, while Spain has reached 70 GW.

The key difference lies in the fact that these countries have successfully implemented flexibility markets and energy storage infrastructure, enabling them to better manage renewable generation variability and mitigate price volatility.

The future of Poland’s energy market

To achieve a more stable and sustainable electricity system, Poland must advance in implementing dynamic tariffs, allowing consumers to adjust their demand based on renewable energy availability. Additionally, the development of energy storage infrastructure and the integration of digital technologies will be crucial in optimising electricity distribution.

In this context, the role of the electricity market will be decisive. As Purchała concludes, “the success of the energy transition will depend on consumers’ ability to adapt their consumption and on the regulatory framework to encourage new investments in infrastructure”.