Surging carbon price presents growing risk to Poland's biggest utility
- Sep 12, 2018 12:58 pm GMT
Poland’s biggest utility, PGE, should accelerate plans to diversify away from coal, as surging carbon prices underscore risks gathering around its present PLN 21 billion ($5.6 billion) coal power investment programme, write Gerard Wynn of IEEFA (Institute for Energy Economics and Financial Analysis) and Paolo Coghe of the Paris-based indepdent consultancy Acousmatics. Courtesy Energy and Carbon Blog.
To date, PGE has deferred plans to diversify away from coal, for example into offshore wind, until the mid- to late-2020s, and only after a massive investment programme has cemented the utility’s dependence on coal, already at 91% of total generation.
In mid-June, the Institute for Energy Economics and Financial Analysis (IEEFA) highlighted two key risks around these coal power investments, both beyond PGE’s control: rising European carbon prices, and dependence on Poland’s new capacity market.
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