Challenges, Concerns, and Perspectives for Poland's Energy Transition during Global COVID-19 Pandemic
| Pages | 169-173 |
| Published date | 01 August 2020 |
| Date | 01 August 2020 |
| DOI | 10.3366/gels.2020.0022 |
COVID-19 has brought significant damage to almost every market. The Global economic shock is also having widespread adverse effects on investments in the energy sector, resulting in their drop by one-fifth in 2020. According to the European Commission's spring forecast the EU countries economies will shrink by 7.5% this year, and the coronavirus crisis is set to cause the worst recession in EU history. At the same time, a significant rebound is expected in 2021. When companies re-evaluate their way of operating within the confines of this global pandemic, it will be vital for them to adopt a more comprehensive and creative approach to the changes necessary for their economic survival and further recovery.
To reach the EU reduction targets, also included in the EU NDCs submitted under the Paris Agreement, effectively reducing GHG's emissions by moving efficiently from fossil fuel to low-emission energy sources, Poland is facing a massive challenge. It is evident that the energy sector in Poland is under huge pressure politically, socially, and financially. The European Green Deal adopted on 11 December, 2019, which allows the EU to become climate neutral by 2050, including a huge economic plan. Poland will find it extremely difficult to replace coal with other sources, i.e. renewable energy at a fast pace. Despite the fact,-that the level of hard coal and lignite output in Poland has been gradually decreasing approx. from 95,6% in 1990 to 76.8% in 2018 in electricity generation and from 86.5% to 79.3% in district heat generation Poland is still coal-based (Eurostat data). Despite decreasing hard coal output, Poland is the largest hard coal producer in the European Union. The Polish hard coal and lignite mining industry employ approximately 80,000 people who display solidarity and are understandably resistant to change which could cause hardship. Worthy of note is that the number of workers employed in the Polish mining sector amounts to around half of the total number of mining sector employees in Europe (approx. 57%).
Despite offering employees the option to retrain in another industry and severance pay deals the widespread proposed closure of mines threatens the heart of the employee force. Add to this the fact that Poland imported 16.4 million tonnes of coal in 2019 as this was deemed financially tactical. The reduction of coal-fired power would result in substantial financial commitments especially in the initial stages of energy...
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