Jagiellonian Institute questions the legitimacy of investing in the construction of a new coal-fired unit in Ostrołęka. In view of the upcoming increases in energy prices, the increase in prices of CO2 emission rights and the sharp increase in imports of Russian coal, investing in Ostrołęka C is ridiculous.

According to experts from the Jagiellonian Institute, the increase in electricity prices in 2019 will cost the Polish economy almost PLN 16 billion and PLN 22 billion in 2020 (compared to 2016). To put it into perspective, Poland’s annual budget for science and higher education combined is about PLN 25 billion.

The Institute argues that the increase in wholesale energy prices on the European market results from the increase in greenhouse gas emission allowances due to the reform of the ETS emissions trading system. Since the end of 2017, the cost of emission allowances per ton of carbon dioxide has increased from EUR 6 to current EUR 20-21, peaking at over EUR 25. Rising prices of hard coal have also affected energy price. Poland’s energy sector is 80% based on coal and lignite, and it’s 95% in case of district heating. This means that the prices of CO2 emission allowances will have a very strong impact on the cost of energy. As it turns out, these prices will probably be even higher, as the Polish conventional energy sector has been using free emission allowances so far. Next year, however, the system will cease to function and we will have to bear the costs of expensive allowances.

We have a permanent collapse in the sector which affects 47% of our production, i.e. in the hard coal sector. The price (of a ton of coal - edited) is at the level of 100 dollars, we are extracting - these are the data from September - at 87 dollars per ton, but we are not able to transport it, the import is scandalously high; only in July we imported 28 % from abroad. The construction of units such as the one (planned - PAP) in Ostrołęka is ridiculous

- said Marcin Roszkowski, President of the Jagiellonian Institute.

As the expert says, “there is no coal in Poland”. He warns that further investment in coal-fired power plants means dependence on fuel purchased from Russia.

If we build a hard coal installation that we don't yet have, we actually make a transfer to the Russian Federation. According to September data, imports from Russia have doubled. The construction of a power plant in Ostrołęka is completely groundless.

The Jagiellonian Institute is a right-wing "independent analytical centre for exchanging views and building strategies. The Institute has been funded by Prof. Wojciech Roszkowski, former member of the Law and Justice party (PiS).

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