Call centre:
22 201 36 60
What is the heating market like in Poland?
Poland’s heating industry definitely needs changes dictated by current climatic and economic conditions. Until now, a very large part of the coal used in Poland has been imported. The raw material used in the Polish heating industry came from domestic deposits to a relatively small extent. The coal shortage resulting from the geopolitical situation requires replenishment and is a challenge for our heating market.
What is the heating industry? What changes in this sector can be expected shortly? What is the current situation of the Polish heating industry? Let’s explain this.
Heating industry: what is it?
To put it simply: the heating industry is a branch of the energy industry that produces and distributes thermal energy. At the heart of the modern heating industry are district heating systems consisting of, among other things, the places where heat is generated, i.e. plants, and the district heating networks through which it is transmitted to consumers. It is worth noting that there is both industrial heating and district heating, which primarily secures the needs of urban households. In the countryside, the vast majority of households rely on their own central heating system.
District heating vs. heating engineering: differences
It might seem that heating industry and heating engineering are terms that are used interchangeably. Meanwhile, they are fundamentally different. We explained the importance of the heating industry above, so now let’s try to define precisely what heating engineering is. This term is used to describe a branch of technology whose main focus is on solutions for efficient heating of premises. In other words, heating engineering is a term referring to all installations and systems by which sufficient heat can be supplied to residential and commercial premises, etc.
Heating industry: the basics of the problems
Under Polish climatic conditions, the importance of an efficient heating market cannot be overstated. It is hard to imagine surviving the chilly autumn and winter months without access to municipal heating. Potential breakdowns have a very large impact on the comfort of daily life, and the cost of fuel and, consequently, heating bills, constitute a very serious item in the household budget of many Poles. Unfortunately, there is no denying that the Polish heating and power industries face many challenges today. What are they?
Ageing infrastructure. For many Polish heating plants, this is one of the most important problems. Unfortunately, the infrastructure often needs to be replaced or renovated, which means significant costs. Here, it is worth noting that inefficiently operating district heating systems can lead to a situation where it will be difficult to meet consumer demand. Potential failures are also a major threat.
EU climate policy. Progressive climate change has led to a situation in which the Polish heating industry is forced to seek alternative energy sources. The use of coal, which is a popular and at the same time highly emissive fuel in Poland, means that a large number of emission allowances must be purchased. The European Emissions Trading Scheme (ETS) is designed to reduce greenhouse gas emissions. The European Union specifies maximum emission allowances, and companies can receive these allowances or buy them. Their price has gone up quite a bit recently, which means rising costs.
Depleting resources. The search for new energy sources is also forced by the non-renewable nature of many of the deposits used in both the global and Polish heating industries. An example is coal, already mentioned many times in this article, which is one of the most popular energy raw materials. However, one must bear in mind that its resources are not unlimited.
Currently, one of the best ways to optimise the heating system in Poland is considered to be high-efficiency cogeneration, which is an energy production process during which both electricity and heat are produced. Cogeneration (CHP, combined heat and power) allows more efficient use of fuels than if heat and power were produced separately. In CHP systems, producing the same amount of power and heat will require using a smaller portion of fuel.
There is no doubt that the heating sector in Poland needs fundamental changes. Their paths are described in two major policy documents: The National Energy and Climate Plan 2021-2030 (NERP) and Poland’s Energy Policy until 2040. (PEP 2040). According to PEP 2040, by 2040, the heat demand of households is to be met through system heat or individual sources, which, however, must be low- or zero-carbon in nature. The transition of individual sources towards low emissions is to be made possible by heat pumps, electric heating and solar PV. Ultimately, with these technologies, the coal will be abandoned[1].
What is the condition of the heating industry in Poland?
According to data reported by the Energy Regulatory Office, at the end of 2020 in the regulated heat market, there were 387 heating companies licensed by the President of the Energy Regulatory Office. It is worth noting that in 2020, the value of installed thermal power remained at the level of 53,271.1 MW, while the length of the networks owned by companies with a license was 22,123.1 km. Although the share of coal fuels has decreased in Poland (while the share of renewable energy sources and gas fuels has increased), they are still the most popular. In 2020, as much as 68.9% of fuels used to produce heat, were coal fuels. According to the Energy Regulatory Office, for effective investments in the energy transition, a major problem is not only the increases in the price of CO2 emission allowances but also the rather rapidly rising cost of purchasing fuels, especially coal and natural gas[2].
Modern heating industry: a summary
Currently, many directions of change are indicated for the modern heating industry in Poland. However, among the innovations that are expected to offer the greatest hope, PEP 2040 mentions heat storage, which will make it possible to improve the operational security of the power sector, electricity storage facilities and hydrogen technologies[3].
[1] „Ciepłownictwo i kogeneracja”, https://www.gov.pl/web/klimat/cieplownictwo-i-kogeneracja, [dostęp: 03.07.2022 r.]
[2] https://www.ure.gov.pl/pl/cieplo/charakterystyka-rynku/10165,2020.html, [dostęp: 03.07.2022 r.]
[3] „Ciepłownictwo i kogeneracja”, https://www.gov.pl/web/klimat/cieplownictwo-i-kogeneracja, [dostęp: 03.07.2022 r.]
Written by: Paweł Kwasowiec
CHP Sales Manager
Leave a reply
Pozostałe aktualności
Gas Engine vs. Gas Turbine – Key Differences
Principle of operation Although both engines and gas turbines are used to produce electrical and thermal energy, they differ fundamentally in the way they achieve this goal. Both devices use the energy of […]
CAT ENGINE SERVICE IN DIFFICULT SEA CONDITIONS ON DRILLING PLATFORMS IN THE BALTIC
In 2022, Eneria began repair work on the CATERPILLAR engine group on the PETRO GIANT drilling platform, owned by LOTOS Petrobaltic. This demanding task is carried out in difficult sea conditions, where equipment […]
Cogeneration – an effective and ecological solution for your company
Modern companies are looking for more and more efficient and ecological energy solutions. One such solution is cogeneration, which is the process of simultaneously generating electricity and heat in one technological cycle. Cogeneration […]