Industry plays a crucial role in the Polish economy, accounting for 23% of GDP and providing employment for more than 3 million people. Poland is also one of the most industrialised countries in the European Union and represents an important link in European supply chains. At the same time, Polish industry is falling behind in the competitiveness race. The sector’s strong dependence on imported fossil fuels, which raises the risks in energy security and independence, combined with the progressing decarbonisation of the economy, means that without investment in modern technologies Polish companies may be less competitive than businesses from China and the United States. As shown in the latest report by Forum Energii, Modernisation or marginalisation. How can industrial electrification ensure Poland’s security, competitiveness, and economic growth for Poland?, technological solutions enabling the electrification of more than 60% of heat currently used in manufacturing industry are already available. Their implementation would permanently reduce the sector’s dependence on gas and coal prices, thereby strengthening its competitiveness.
Industrial electrification is not only a technological change, but above all a strategic decision about the direction of Poland’s economic development. Our report shows that implementation is possible, provided that electricity prices for the sector are reduced, appropriate support mechanisms are introduced, access to financing is ensured, and a stable regulatory environment is maintained. At the same time, this process must be economically viable and sustainable under market conditions.
– said Joanna Pandera PhD, President of Forum Energii.
Decarbonisation of 17 out of 24 manufacturing sectors is possible
- A 62% reduction in natural gas consumption for industrial heating purposes (approximately 3 billion cubic metres annually).
- A 42% reduction in coal consumption (2 million tonnes annually).
- An 83% reduction in annual oil and oil-derived product consumption.
- A reduction in greenhouse gas emissions of approximately 21 million tonnes of CO₂ annually.
Barriers: energy prices and the electricity grid
2.6 times higher than the cost of energy generated from natural gas. This effectively discourages companies from investing in heat pumps or electric furnaces, even when investment support is available.
Industry is facing a choice today: modernisation or marginalisation. We estimate that the cost of electrification technologies will amount to approximately PLN 67 billion, which is comparable to the funds companies already allocate to replacing and upgrading their production assets. The challenge is not CAPEX, but OPEX — the operating costs resulting from electricity prices. Without appropriate support mechanisms and access to affordable, zero-emission energy, Polish industry may not be able to carry out the transition, and the market for industrial equipment may become dominated by suppliers from outside Europe, primarily from China.
– added Marcin Dusiło, Industry Programme Lead.
