The Polish government will complete its takeover of coal assets from state-run utilities – PGE, Enea and Tauron in the second or third quarter of 2022, a draft document published by the state assets ministry said. Poland generates most of its electricity from polluting coal, but under rising pressure from the European Union and with carbon emission costs surging, it has encouraged more investment in low emission sources. The government plans to take over the coal assets owned by its utilities, except from hard coal mines, and then transfer them to a new state-owned company. The coal assets are associated with high levels of debt and their continued use has weighed on the financial results of the state-run energy groups.
Officials have said the industry needs a new model to help it fund green projects as banks have shied away from backing coal-dependant companies. Environmentalists have slammed the proposal, saying it does not solve the coal problem in Poland.