Poland has set a new benchmark in renewable energy deployment. As of April 2025, the photovoltaic generation capacity reached 22,074 MW, while onshore wind farms totalled 10,868 MW, according to the latest figures released by Polskie Sieci Elektroenergetyczne (PSE), the national transmission system operator.

This marks a significant increase compared to the 21 GW of renewables reported by Strategic Energy Europe in March 2025, reflecting a surge of over 12 GW year-on-year and highlighting the pace of Poland’s solar energy transition.

This achievement positions Poland as a leading player in Central Europe’s green transformation. However, the accelerated deployment is also putting pressure on grid stability, raising new challenges in matching supply with demand due to the variable nature of renewables.

Generation dynamics and balancing challenges

According to the report “Assessment of Commercial Balancing Quality”, PSE warns that Poland’s national system is experiencing systematic imbalances between contracted energy volumes and actual production or consumption. In the second half of 2024 alone, imbalances exceeded 1,000 MW in 20% of settlement periods and surpassed 2,000 MW in 3.3% of cases, a level considered critical for grid stability.

“The system regularly suffers from oversupply during peak PV hours (10:00 to 16:00), and shortages during morning and evening demand peaks,” the report states. These fluctuations occur frequently and impact both operational safety and economic efficiency.

Such deviations are not only the result of forecasting errors but also of market behaviours. “The balancing market is being systematically used by participants to inject surplus energy or cover deficits without bearing the true cost of imbalance,” the report stresses.

Reforming incentives and enhancing price signals

To respond to the growing presence of renewables, PSE has pushed for regulatory reforms, including the rollout of dynamic pricing schemes aimed at increasing system responsiveness. In its publication “Dynamic Electricity Prices as a Key Incentive”, PSE notes that “dynamic prices are a fundamental tool to encourage consumers and producers to adjust their behaviour based on the availability of renewable resources”.

The strategy is designed to shift consumption to times of high solar or wind output, easing pressure on the system and reducing the need for fossil-based backup or costly imports.

“The success of the energy transition largely depends on the ability of consumers to adapt their habits,” says Konrad Purchała, Vice President of PSE. “We must raise awareness about the value of flexibility and the economic benefits it brings.”

Still, balancing performance has yet to improve significantly. By December 2024, only half of all market intervals remained within the acceptable ±500 MW deviation range, reinforcing the need for stronger financial incentives to ensure disciplined market participation and optimal resource use.

A structurally evolving power system

Another critical concern raised by PSE is the rising share of non-centrally dispatched generation (nJWCD) — including small-scale PV and other units not subject to direct operational control. Currently, these sources account for nearly 60% of the total installed capacity, complicating dispatch planning and increasing the risk of imbalances.

“The only way to coordinate such distributed resources is through appropriate price signals,” PSE notes. This underpins the agency’s efforts to redesign balancing mechanisms by incorporating pricing components such as Alpha and DK, which vary according to the level of imbalance and system costs.

Poland has reached a historic milestone in renewable capacity, surpassing 33 GW combined across solar and wind. This is a major step forward in meeting climate goals and strengthening energy independence. However, it also demands structural changes in grid operation and market design, especially in balancing mechanisms, price signalling, and stakeholder participation.

As PSE concludes, “Without improvements in balancing quality, the system will not be able to accommodate further renewable growth without risking instability.”