Poland Coal
Image credit: The half-completed Ostrołęka C power plant. Image credit: Patrick - Google Picasa

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”.

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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.”

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