Poland's leading power utility, PGE has announced plans to cease electricity production at the four remaining coal-fired units of its Rybnik power plant by the end of 2025. According to a report from the Polish Press Agency on Thursday, this decision will impact units with a combined power capacity of 900 megawatts (MW), which are currently operating under capacity market contracts set to expire in 2025.
Coal has traditionally dominated Poland's energy mix, but state-controlled utilities like PGE are increasingly finding coal-fired generation less profitable. The industry is facing growing challenges, including a shift towards renewable energy and banks' reluctance to finance coal assets. In response to these pressures, PGE has already phased out four other coal units at the Rybnik plant and plans to replace them with a new 882 MW gas-fired unit, expected to be operational by the end of 2026.
PGE confirmed in an emailed statement that this decision had been in place since 2020, although the deadline for ending heat production at the coal-fired units has been extended until August 31, 2026. This shift is part of PGE's ongoing strategy to expand its renewable energy capacity and reduce its reliance on coal, in line with broader trends in the European energy sector.
