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Minister: Polish energy companies have no economic reason to sell coal assets

Jakub Jaworowski, the Polish Minister of State Assets, said that an analysis by the government had revealed no economic basis for a spinoff of coal assets. He also stated that there was a need for a support system for coal plants at European Union levels beyond 2028.

Poland is working on reducing its dependence on coal, as renewable energy sources take a greater share of the market. However, it still requires a mechanism that supports conventional power plants to provide electricity during times when renewable generation is intermittent.

In a press statement, the ministry stated that the assumptions used for the previous coal assets plan were based upon power prices in 2022. These were higher due to the conflict in Ukraine.

Since then, power prices have more than halved and the share renewable energy continues to grow.

State-controlled utilities, under pressure from falling coal profits, have stopped paying dividends. Now they are calling for a program to help cover the costs of operating coal plants.

Last month, the country's largest utility PGE said that it would be able to resume dividend payments more quickly if the profitability issue for coal assets was resolved.

The ministry noted that, under the current rules, payments for capacity of high-emission sources will be prohibited from 2028. However, Poland needs additional support mechanisms in order to avoid a gap in power supply from 2029. (Reporting by Marek Strzelecki; writing by Anna Wlodarczak-Semczuk; editing by Jan Harvey)

(source: Reuters)