{"id":42701,"date":"2020-10-20T16:08:07","date_gmt":"2020-10-20T15:08:07","guid":{"rendered":"https:\/\/www.climatechangenews.com\/?p=42701"},"modified":"2020-10-21T09:08:00","modified_gmt":"2020-10-21T08:08:00","slug":"polands-largest-utility-announces-pivot-coal-renewables","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2020\/10\/20\/polands-largest-utility-announces-pivot-coal-renewables\/","title":{"rendered":"Poland’s largest utility announces pivot from coal to renewables"},"content":{"rendered":"

Poland’s largest utility has said it wants to get rid of its coal assets and invest in renewables, becoming carbon neutral by 2050.<\/strong><\/p>\n

PGE, which is majority state-owned, revealed plans on Monday to transfer its coal mines and power stations to a new state-owned entity. The strategy depends on the Polish government agreeing to manage the coal business and the European Commission giving approval for state aid, which are both uncertain.<\/p>\n

“Within a decade, the PGE Group will become a completely different company,” said PGE president Wojciech D\u0105browski in a statement<\/a> on the new strategy.<\/p>\n

Currently, more than 80%<\/a> of PGE’s electricity generation is based on coal. This has made it difficult for the company to attract financing as many banks have vowed not to support coal.<\/p>\n

In response to an investor question, D\u0105browski reportedly said<\/a> that if it did not separate its coal assets, the business would go bankrupt in a year and a half.<\/p>\n

By cutting coal loose, the company is aiming to generate 50%<\/a> of its electricity from renewable sources by 2030 and 100% by 2050.<\/p>\n

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Analysts praised PGE’s enthusiasm for renewables but said the company should take responsibility for closing down its coal assets, not pass them to another arm of the state.<\/p>\n

“It means that this coal phase-out and shutting down coal power plants and lignite mines will be on Polish taxpayers,” said Robert Tomaszewski, energy analyst at Polityka Insight. “We’re going to pay for it.”<\/p>\n

Alexsandra Gawlikowska-Fyk, an analyst with Warsaw-based Forum Energii, added: “PGE is just saying ‘OK we don’t want this coal anymore, let the Polish state carry the issue of coal phase-out’. This shouldn’t be the case. PGE should take responsibility because these are their assets.”<\/p>\n

Greenpeace characterised it<\/a> as “just a transfer of dirty assets from one pocket to another” and as “an escape from responsibility for the real transformation necessary to counteract the climate crisis”.<\/p>\n

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The company also plans to invest in fossil gas which its president Wojciech D\u0105browski sees<\/a> as a “transition fuel” for the next 20 years. Gas is less polluting than coal when burned, but methane leaked in the extraction process can worsen its climate impact.<\/p>\n

Tomaszewski said PGE’s CEO told him that the company hopes to transfer the gas plants to hydrogen by around 2040. Hydrogen can be produced with renewable energy.<\/p>\n

Following this announcement, PGE’s shares rose<\/a>. The firm’s ambition was praised by Karl Zammit-Maempel, head of energy at Cop26 climate action champions, and Polish climate minister Michal Kurtyka<\/a>.<\/p>\n

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Very impressive to see new strategy from Polish utility PGE, with 85% emission reduction aim by 2030, big expansion of renewable energy and net zero by 2050 #RaceToZero<\/a> https:\/\/t.co\/0NKArEzFYo<\/a><\/p>\n

— Karl Zammit-Maempel (@climatekarlzm) October 19, 2020<\/a><\/p><\/blockquote>\n