Dear Sirs,
Poland’s centralized district heating sector is in a transition process that aims to achieve climate neutrality in 2050. The implementation of the EU’s climate and energy goals (the European Green Deal and the „Fit for 55” package) poses a number of decarbonization challenges for the sector and will require energy companies to work closely with both local governments and final customers for heat.
I believe that only full involvement in the transformation of all market participants will make it possible to achieve the assumed decarbonization goals in the timeframe required by the EU legislator. A key challenge for energy companies posed by EU regulations is to meet the criteria for an efficient centralized district heating system, while ensuring the price competitiveness of system heat and minimizing the burden of transition costs on Poland’s residents. This report is a signpost of possible paths for decarbonizing district heating systems, as their starting point are the „Fit for 55” package regulations, commercially available technologies and fuels. This report provides information on the financial effort ahead for heat generators, distributors and final customers.
According to the results of expert analyses by the Polish Association of Heat Energy (PTEC), capital expenditures for the transformation of the centralized district heating sector will, depending on the scenario, amount to between PLN 299 billion and PLN 466 billion by 2050. The process of decarbonizing centralized district heating is a huge challenge for all its participants and beneficiaries; therefore, for the time being, it is the national legislation that seems to be the key element in the process. That legislation should support the sector’s drive for investment and open up new opportunities for financing these projects.
I hope that the proposals contained in this report will provide a starting point for further discussions and changes in the regulatory environment supporting investment in the energy industry.
Handing the report over to you, I hope you will find it an interesting read.
Dariusz Marzec
President of the Management Board
Polish Association of Heat Energy
