In a present marked by the transition to sustainable energy, Poland has surpassed 30 GW of installed capacity in wind and solar energy, consolidating its progress in renewable energy. According to data from Polskie Sieci Elektroenergetyczne (PSE), by early October 2024, the combined capacity reached 30,479 MW, with an increase of 3,333 MW in 2024 and a total rise of 26,728 MW since 2014.

This growth is mainly attributed to photovoltaic solar energy, which is experiencing significant expansion. By early September 2024, photovoltaic capacity reached 19,942 MW, compared to just 21 MW in 2014. Poland surpassed the 10 GW mark in solar energy in 2019, reflecting the rapid development of this energy source.

On the other hand, wind energy is growing at a slower pace, with 10,537 MW installed by early October. This growth is impacted by the “Distance Law,” which limits the construction of onshore wind farms and the adoption of more advanced technologies.

The 2016 version of the law stipulated that onshore wind farms had to be located at a minimum distance of 10 times the height of the turbine from residential buildings, which restricted wind development. In 2023, it was amended to reduce the minimum distance to 500 meters, allowing local governments to adjust it even further. Public consultations before approving new projects were also introduced. Despite this, several wind farms have been developed through auctions in recent years.

In the coming years, the increase in onshore wind capacity is expected to be slower due to the lack of new projects since 2016. However, offshore wind energy is expected to gain momentum around 2026 when new constructions are set to begin.

Other renewable energy sources, such as hydroelectric, biomass, and biogas, show more limited growth. According to the Energy Market Agency (ARE), by the end of August 2024, hydroelectric capacity reached 981 MW, biomass 965 MW, and biogas 307 MW.

In total, Poland’s installed electricity capacity by the end of August was 79,082 MW, with 45% coming from renewable sources. Photovoltaics lead the growth, while other renewable technologies still face slower development.

Driving Policies

Poland’s progress in the renewable energy sector is no coincidence. It is backed by the Energy Policy of Poland until 2040 (EPP2040), approved in 2021. This plan sets ambitious objectives for the transformation of the energy sector, with the goal of reducing coal-based energy generation to a maximum of 56%, increasing the share of renewable sources to at least 23%, and reducing greenhouse gas emissions by 30% compared to 1990 levels. These measures aim to align Poland with the environmental requirements of the European Union and the Paris Agreement.

In addition, the Polish government has implemented key fiscal incentives to encourage the adoption of renewable energy. In 2019, the VAT on photovoltaic energy was reduced from 23% to 8%, which has facilitated the expansion of this technology in the country. These types of incentives have been crucial in making solar panel installation more accessible at the residential and commercial levels.

Technology-Specific Goals

Poland has also defined specific goals by technology in its energy strategy. Offshore wind capacity is expected to reach 5.9% of the energy mix by 2030 and 11% by 2040, while the solar capacity target is 7.8 GW by 2030. These figures underscore the country’s commitment to diversifying its energy matrix and reducing its dependence on coal.

In line with these goals, a recently adopted Renewable Energy Amendment Law seeks to simplify administrative procedures for the installation of renewable energy projects. Key reforms include the exemption of construction licenses for photovoltaic installations up to 150 kW, a significant increase from the previous 50 kW limit. Additionally, a National Contact Point has been established to provide detailed information on the administrative procedures necessary to implement renewable energy projects, which facilitates the permitting process for investors. This law also clarifies provisions related to Power Purchase Agreements (PPAs), which could encourage collaboration between clean energy producers and consumers.

Obstacles

Poland’s main challenge is its historic dependence on coal. Although the goal is to phase out coal mining by 2049, some experts believe this target is unrealistic without adequate compensatory measures.

In fact, in 2020, only 10.75% of Poland’s energy came from renewable sources, well below the 15% target set by the European Union for that year. This gap reflects the country’s difficulties in moving away from its intensive use of coal, a resource that has been fundamental to its energy matrix for decades.