Poland’s coal mining industry has been profoundly impacted by COVID-19. The country’s coal production is becoming less efficient as it imports cheaper coal from other nations to meet its energy consumption needs. GlobalData predicts that if the country focuses on phasing out coal-based generation, it could receive EU funds that could be utilized for a smoother transition to a greener society and will likely ease the financial burden faced while undergoing the green shift.

Somik Das, Senior Power Analyst at GlobalData, comments: “Poland is the only EU state denying the carbon neutrality by 2050 vow. According to GlobalData, the country generates the largest amount of coal-based electricity within the Eastern European region. Nearly 80% of the country’s 2019 electricity consumption was met by coal and this is likely to reduce to around 75% this year. Amid this rigidity, the pandemic has challenged coal-based generation even further. Generation from coal could be further impacted in the long run and there could be a preference for green sources when it comes to generating electricity.”

The Polish Government could utilize the COVID-19 outbreak as a pretext to shut inefficient coal mines forever. However, this is expected to result in a significant loss of employment within the nation.

Das adds: “The loss in employment can be compensated by opportunities in the clean energy sector. The willingness of the government to move away from coal and incorporate renewable development plans in the economic revival strategy is anticipated to expand the economy with a holistic development of the sector.”