Poland to Keep Coal Power Plants on Standby Amid Energy Security Concerns

Poland’s government is preparing a contingency plan to bolster energy security, including the potential leverage of coal-fired power plants in a “cold reserve” capacity. The move, announced alongside agreements to build new gas-fired power plants in Rybnik and Gryfino, reflects a pragmatic approach to balancing energy transition goals with the need for reliable power supply, particularly given geopolitical uncertainties and volatile gas prices.

New Gas Capacity and a Shifting Energy Landscape

On March 4, 2026, PGE Polska Grupa Energetyczna finalized contracts for the construction of new gas-fired power plants in Rybnik and Gryfino, representing a combined investment of approximately 6 billion złoty (roughly $1.46 billion USD, based on current exchange rates). These plants, each with a capacity of around 600 MW, are intended to increase the flexibility of the Polish power grid and provide additional capacity during peak demand periods. The contracts were awarded to a consortium led by Polimex Mostostal and Siemens Energy, and include a 12-year service agreement, according to a press release from PGE.

The announcement of the gas plant construction coincided with discussions regarding the future of coal-fired power generation in Poland. Energy Minister Miłosz Motyka acknowledged concerns raised by trade unions, particularly those affiliated with Solidarność, who feel misled by previous agreements regarding the Rybnik power plant. These unions argue that a 2021 social agreement stipulated the plant would operate until 2030, a timeline now potentially jeopardized by the shift towards gas and renewable energy sources. Motyka stated that workers were “cheated by the previous government” if commitments were made without securing the necessary corporate financing to support the plant’s continued operation.

The “Cold Reserve” Concept and Regional Precedents

Responding to questions about the future of coal, Minister Motyka revealed the government is considering maintaining some coal-fired blocks in a “cold reserve” – a state of readiness allowing for rapid activation in the event of supply disruptions or peak demand. This isn’t a novel idea, he noted, pointing to similar strategies implemented in other European countries. The concept was previously proposed under a different framework, known as NABE (Narodowa Agencja Bezpieczeństwa Energetycznego – National Agency for Energy Security), but was not fully implemented by the prior administration.

The rationale behind the cold reserve is to provide a readily available source of power during potential crises, ensuring energy security without the ongoing operational costs associated with continuously running coal plants. Motyka emphasized that any decision regarding the cold reserve would be based on economic justification and the operational efficiency of the remaining coal blocks. He also highlighted the example of Italy, which is considering reactivating its coal-fired plants due to high gas prices, demonstrating the broader European trend towards reassessing the role of fossil fuels in energy security.

Impact on Workers and Local Economies

The transition away from coal raises concerns about job losses in mining regions like Rybnik. Currently, the Rybnik power plant employs 430 workers, with the new gas-fired facility expected to create 52 positions. PGE is reportedly working on plans to leverage the skills of existing employees in new segments of the energy sector, recognizing the value of their expertise. Minister Motyka stressed the importance of securing employment for these workers, acknowledging that qualified energy sector professionals are difficult to replace.

Market Mechanics and Regulatory Framework

The government’s approach to maintaining energy security involves a combination of market mechanisms and regulatory adjustments. The existing capacity market, designed to incentivize investment in power generation, has been extended through a recent legislative amendment. The government is also exploring options for extending this mechanism further or establishing a dedicated cold reserve framework. This support is intended to ensure that conventional power sources remain available while the country transitions towards renewable energy and, eventually, nuclear power.

The decision to potentially utilize coal in a cold reserve capacity also reflects broader concerns about reliance on imported gas. As Minister Motyka pointed out, Poland possesses domestic coal reserves, offering a degree of energy independence. This consideration is particularly relevant in light of geopolitical instability and fluctuating gas prices, as evidenced by the situation in the Middle East.

Financial Implications and Investment Signals

The 6 billion złoty investment in the new gas-fired plants signals PGE’s commitment to diversifying its energy portfolio and enhancing grid flexibility. The project is expected to contribute to the stability of the Polish power system and reduce reliance on less predictable energy sources. However, the long-term financial viability of these plants will depend on gas prices and the evolving regulatory landscape. The potential for extending the capacity market mechanism provides some assurance for investors, but ongoing uncertainty remains regarding the future of coal and the pace of the energy transition.

What’s Next: Procedural Steps and Ongoing Assessments

The immediate next steps involve the construction of the gas-fired power plants in Rybnik and Gryfino, with completion targeted for 2030. Simultaneously, the government will continue to assess the feasibility and economic viability of establishing a cold reserve of coal-fired blocks. This assessment will involve evaluating the condition of existing plants, the cost of maintaining them in reserve, and the potential benefits in terms of energy security. The Ministry of State Assets is responsible for providing the necessary data for this evaluation, while the Ministry of Climate and Environment will focus on developing the regulatory framework. Further decisions regarding the capacity market mechanism and the cold reserve will be made in the coming months, based on the outcome of these assessments.