Poland's demand for coal is expected to fall by about 7 million tons next year, affected by falling electricity demand and rising coal and electricity costs, Artur Sobon, the Deputy Minister of State Assets of Poland said on September 4.
Most of Poland's electricity comes from coal, but rising carbon-emissions licensing prices have led to high costs. In addition, Poland's coal industry has to work to deal with the decline in coal demand.
Mr Sobain said the situation in the coal industry is not optimistic, Poland's total electricity generation and coal-fired power generation have declined, and the downward trend is expected to continue. According to data from power plants, demand for coal in Poland is likely to fall by about 7 million tons next year.
According to the output statistics released by Poland's Central Bureau of Statistics, Poland's coal production totaled 57.795 million tons in January-July, down 13.22% from a year earlier. Among them, the output of hard coal was 31.544 million tons, down 12.91 tons from the same period last year, and the output of lignite was 26.251 million tons, down 13.59 tons from the same period last year.
Tomasz Rogala, the chief executive of Poland's largest coal producer pgg Group, said the company had to adjust its coal production to the needs of Polish power plants because it could not open up new markets.
PGG Group produces about 30 million tons of coal a year, but coal production is expected to decline this year as demand falls and the epidemic spreads. Earlier, according to industry sources, as part of the restructuring plan, PGG may increase efforts to reduce production and close several coal mines. PGG annual output will be reduced by more than 10%, sources said.
Another source said the group's goal may be to phase out coal mines in the Silesia coal-producing region by 2036.
However, the company's initial restructuring plan was opposed by unions in July. From then on, the Polish government, PGG and trade unions have been working on a new restructuring plan.
As part of efforts to limit energy imports and protect the country's coal industry, the Polish government recently announced the plans to reduce the obligation of power companies to sell electricity through the Polish electricity exchange. Poland's state-owned assets ministry said in a notice, the government no longer forces Polish electricity companies to sell electricity through exchanges, thereby limiting coal imports and driving domestic coal consumption in power plants.
Source : China Coal Resources Network
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