After months of discussion, denial and debate, the controversial 1GW Ostrołęka C facility, hailed as the last coal plant in Poland, has had financing suspended, according to a joint statement by development partners Enea SAA and Energa SA.
The reasons stated include changes “in a number of circumstances” including “planned changes in the EU’s policy with regard to the electricity sector” and the “so-called Green Deal, and action plan to ensure EU climate neutrality by 2050”.
EU launches Green Deal Investment plan to meet climate targets
Polish state utility secures EIB funding to accelerate energy decarbonisation
GE, China, persisting in ill-advised African coal power proposals – IEEFA
Michal Hetmanski from Warsaw-based think tank Instrat said: “Rising carbon prices are leaving existing coal power plants with financial trouble. Building new coal with the hope that annual profits would cover CAPEX was highly unrealistic and this has finally sunk in for Energa and Enea.
“We’ve shown that the companies would have been looking at a loss of €1.5 billion over 30 years for Ostrołęka C – almost the entire value of the investment to build the plant in the first place.”
Enlit Europe will gather in Milan between 30 November and 02 December 2021 and will feature innovative companies accelerating decarbonisation at Europe’s largest gathering of companies driving and leading the energy transition. Are you going to be there?
Click here to join us in Milan.