EU Energy Policy

Polish coal plant outlook hinges on capacity payments

National capacity payments could be the only way for Poland’s utilities to keep their coal-fired power plants in profit National capacity payments could be the only way for Poland’s utilities to keep their coal-fired power plants in profit.
By Andreas Walstad 3 July 2018 0 31576
A coal-fired power plant in Poland. (Zepak)

Poland’s coal-fired power operators are betting on capacity payments to keep them profitable, but the measures may be challenged by a set of new EU regulations that could ban such subsidies for coal plants from 2025. 

Capacity mechanisms – which are funded by end-users – are designed to ensure plant operators receive stable and predictable revenue streams in return for making generation capacity available in the future. However, draft EU electricity market reforms proposed by the European Commission in late 2016 include an emissions performance standard...