Ensuring the security of power generation systems is a pillar of the proper functioning of each state. Energy security is fundamental to ensure both economic growth and social welfare. As energy storage has not developed in an efficient extent, covering the current and prospective power demand is a major challenge for transmission system operators. Moreover, the activities that are to be taken should be technically and economically justified and need to meet the requirements of environmental protection. Cooperation between neighboring countries in the field of electricity exchange is among the activities undertaken to ensure the safety of the power generation systems. The integration of electricity markets is one of the key challenges of the European Union’s energy policy. The European Commission issued a directive on interconnection, according to which the capacity of interconnections should total 10% of installed capacity until 2020 (and 15% until 2030) in each Member State. The main objective of this study is to assess the changes in electricity imports and exports in 2003–2018 and to investigate the current level of cross-border exchanges between Poland and the neighboring countries. This paper also answers the question of whether Poland will fulfil the obligations set by the European Commission. In addition, the paper presents the risks and the challenges related to fulfilling the mentioned commitments. The results of the study indicate that the development and modernization of network infrastructure in the field of cross-border exchange are necessary because, in the context of the forecasted increase in electricity demand, Polish generation units will not be able to meet the demand.

Capacity remuneration mechanisms have been imposed globally in order to ensure capacity adequacy and prevent a sharp increase in electricity prices in the long-term. The main causes of their introduction are to provide financial support for companies to generate electricity or reduce consumption in peak demand and ensure sufficient incentives for potential investors. The paper aims to review the capacity remuneration mechanisms introduced in various countries. The following mechanisms are discussed: capacity payment, strategic reserve, reliability options, capacity obligations, and capacity auctions. The paper indicates the main advantages of mechanisms and key challenges related to their introduction and operation as well. The paper contributes to the existing literature by extending and updating the knowledge on the capacity remuneration mechanisms in various energy markets. The results indicate that the most complex schemes are market mechanisms. Regardless of the nature of the traded good (call options, certificates, capacity obligation), the second market structure must be introduced and managed. Consequently, the obligations are imposed on (i) the regulatory body (regulator or transmission system operator), generation companies (or demand-side response), trading companies, and consumers. The other challenge of the implementation of various CRMs is related to the transparent treatment of all technologies. All CRMs should be technologically neutral, but ultimately, some units are more favorable due to their greater impact on the reliability of the power system.

The capacity market is a response to potential capacity scarcity in the system. The missing money problem may occur as a result of the dynamic development of renewable energy sources because their capacity factors are significantly lower in comparison to those of conventional generating units. The capacity market is a response to capacity scarcity in dynamic growth in renewable energy sources with lower capacity factors than thermal power plants. It is a support mechanism that provides additional funds in order for generation companies to be ready to produce electricity in system stress events. So far, seven capacity auctions have been held for 2021–2027 delivery periods. Since the vast majority of capacity market units are coal-fired public thermal power plants and combined heat and power plants, the analysis of capacity auction results provides valuable findings on coal consumption in the years to come. With this in mind, the objective of the study is to investigate the potential of coal consumption resulting from the long-term capacity contracts signed thus far. For this purpose, a comprehensive analysis of the capacity auctions’ results is conducted, including the analysis of the duration of the contracts, the structure of ownership, and fuels used in power units. The results show that the figures relating to the consumption of steam coal in units that have won capacity auctions are around 21,306 thousand Mg for 2023 and decreasing to 9,603 thousand Mg for 2035. Although European restrictions were introduced to limit remuneration for high-emission units, the long-term contracts ensure that these will remain in the system and will have an impact on the total consumption of steam coal in the medium- and long-term in the Polish power system.

The paper investigates the supply structure of the capacity market in Poland in the coming years. The results of the capacity auctions conducted in 2018 are analyzed for this purpose. Three auctions were held at that time. The products traded in the capacity market are capacity obligations for the following years: 2021, 2022 and 2023. The auctions were organized in accordance with (i) he Act of December 8, 2017 on the Capacity Market and the (ii) Capacity Market Regulations published by the Polish Power Grid. The source of data used in this study is the official information of the President of the Energy Regulatory Office on the final results of the main auctions for 2021–2023 delivery periods. The list of the capacity suppliers who won capacity auctions contains the type of capacity market units, the volume of capacity obligations, the duration of capacity agreements and the business name of the capacity suppliers. The conducted analysis indicates that the auction for 2021 was won mainly by existing units (45.81%) and refurbishing units (33.51%). In subsequent years, the share of existing generating units is significantly higher and amounts to 91.67% for 2022 and 84.54% for 2023. The results of the study carried out in this paper also show that one energy company, being the owner of power generating daughter companies, has a very high share in these capacity auctions. The PGE Capital Group contracted 51.95% for 2021, 69.92% for 2022 and 64.44% for 2023 of the total capacity obligation. The volume amounts to over 70% of their total installed capacity.

Recent dynamic changes in global fossil fuels markets and the European carbon dioxide emission allowances system have significantly impacted the energy sectors. These fluctuations also influence district heating (DH) markets where coal and natural gas remain dominant energy vectors in numerous European countries. District heating markets are distinct from other commodity markets due to their local nature and distribution requirements. Consequently, they can operate under various market models and have different price design policies depending on the country and region. With these considerations, this study aims to review and analyse the current market models and regulations of price formulation in the context of final prices in selected district heating markets. The primary objective is to conduct an in-depth analysis of the key district heating markets in Poland and compare the outcomes with the markets of neighbouring countries, including the Czech Republic, Slovakia, Lithuania, Latvia, Estonia, and Germany. Poland is taken as an example due to its high dependence on fossil fuels and its vulnerability to current global price fluctuations. The results indicate that Poland has one of the most regulated district heating markets, and these regulations can impact the profitability of district heating companies with high prices of fuel and carbon certificates observed in global markets. To create incentives for potential investors and incumbent companies to develop more sustainable and low-emission district heating markets in Poland – where energy transition processes are still underway – it is recommended to increase the frequency of formulation and approval of tariffs.

Increasing the share of energy production from renewable sources (RES) plays a key role in the sustainable and more competitive development of the energy sector. Among the renewable energy sources, the greatest increase can be observed in the case of solar and wind power generation. It should be noted that RES are an increasingly important elements of the power systems and that their share in energy production will continue to rise. On the other hand the development of variable generation sources (wind and solar energy) poses a serious challenge for power systems as operators of unconventional power plants are unable to provide information about the forecasted production level and the energy generated in a given period is sometimes higher than the demand for energy in all of the power systems. Therefore, with the development of RES, a considerable amount of the generated energy is wasted. The solution is energy storage, which makes it possible to improve the management of power systems. The objective of this article is to present the concept of electricity storage in the form of the chemical energy of hydrogen (Power to Gas) in order to improve the functioning of the power system in Poland. The expected growth in the installed capacity of wind power plants will result in more periods in which excess energy will be produced. In order to avoid wasting large amounts of energy, the introduction of storage systems is necessary. An analysis of the development of wind power plants demonstrates that the Power to Gas concept can be developed in Poland, as indicated by the estimated installed capacity and the potential amount of energy to be generated. In view of the above, the excess electricity will be available for storage in the form of chemical energy of hydrogen, which

The Polish power generation system is based mostly on coal-fired power plants. Therefore, the coal mining sector is strongly sensitive to changes in the energy sector, of which decarbonization is the crucial one. The EU Emission Trading System (EU ETS) requires power generating companies to purchase European Emission Allowances (EUAs), whose prices have recently soared. They have a direct impact on the cost efficiency of hard coal-fired power generation, hence influence the consumption of hard coal on the power sector. In this context, the objective of this paper is to estimate the hard coal consumption in various regions of Poland under selected forecasts of the EUA price. To investigate this question, two models are employed:

 - the PolPower_LR model that simulates the Polish power generation system,

 - the FSM _LR model that optimizes hard coal supplies.

Three scenarios differentiated by the EUA price are designed for this study. In the first one, the average EUA price from 2014–2017 is assumed. In the second and third, the EUA prices are assumed accordingly to the NPS and the SDS scenario of the World Energy Outlook. In this study we consider only existing, modernized, under construction and announced coal-fired power generation units. The results of the study indicate that regardless of the scenario, a drop in hard coal consumption by power generation units is observed in the entire period of analysis. However, the dynamics of these changes differ. The results of this analysis prove that the volume of hard coal consumption may differ by even 136 million Mg (in total) depending on the EUA prices development scenario. The highest cumulated volume of hard coal consumption is observed in the Opolski, Radomski and Sosnowiecki region, regardless of the considered scenario.

In the era of the fight against global warming and in light of the search for energy with the least possible impact on the environment, interest in hydrogen has become a natural direction of development. Striving for a zero-emission Europe by 2050, the EU promotes low-emission and ultimately emission-free hydrogen for the widest possible use in the economy. Poland has developed a strategic document specifying the necessary activities for the use of hydrogen in the economy, which should at the same time maintain its competitiveness. Poland is currently the third producer of hydrogen in the European Union, which enables strategic thinking about maintaining Poland as a leading player on the hydrogen market in the long term. Currently, hydrogen in Poland is produced by (usually large) state-owned enterprises for their own needs with only a small margin of its resale. This is conventional hydrogen that is mainly obtained from natural gas. Therefore, it is difficult to talk about the hydrogen market, which must develop so that this raw material can be widely used in many branches of the modern economy. However, this requires taking a number of legislative, research and development and investment activities, as well as directing the national energy transformation to renewable energy sources, which may ultimately reduce the costs of pure hydrogen production. A number of actions have been taken, but the delay in legislative actions is slowing down the creation of the hydrogen market and is limiting the interest of private businesses in engaging in transformation activities.

The paper investigates the competitiveness of the Polish hard coal mining sector as a fuel source for heat and power generation. The main objective of the study is to make a quantitative assessment of the impact of the price relationship between domestic and imported steam coal on the consumption of domestic fine coal in the Polish heat and power generation sector. For this purpose, a long-term mathematical model of the Polish steam coal market is employed and scenarios that mimic the relationship between domestic and imported steam coal prices is developed. The following results are analysed:

- the volume of total domestic steam coal consumption under the scenarios analysed,

- the absolute difference in domestic steam coal consumption under the scenarios analysed in comparison with the scenario 0%,

- the total imported and domestic steam coal consumption in the period analysed.

In addition, the results were depicted in cartograms in order to present the distribution of domestic and imported coal consumption in the various regions of Poland.

The results of the study indicate that the supply of steam coal in Poland can be completely covered by domestic mines when the price of domestic coal is from –40% to –20% lower than that of imported coal. For the remaining scenarios, the consumption of imported coal increases and reaches its highest value in the scenario +40%, in which imported coal covered of 71% of total steam coal consumption in Poland over the period.

The conclusions presented in this paper provide valuable findings and policy insights into the competitiveness of domestic mines and management of domestic production both in Poland and other countries in which power generation systems are mostly dominated by coal.

Energy transition is a process that affects entire regions, not only reducing the prevailing socio- -economic conditions but most importantly, creating a new framework of functioning for their inhabitants. The changes that are taking place can be described as territorial stresses, which are factors that affect not only the psychological well-being of residents but also the economic, demographic, technological and ecological conditions of the regions. The article presents the partial results of research work conducted within the EN TRAN CES project. The authors compare two carbon-intensive regions: Kraków Metropolitan Area (high air pollution area) and Silesia (coal mining area). Comparing the results of the two components and thus the research methods: - the identification and systematization of the socio-cultural stress situation (a component describing events relevant to the transformation of the regions from 1945–2022 and the sparing of its significance on the development conditions in the regions; - the assessment of the adaptive capacity of the residents based on their attachment to the place, individual adaptation strategies for resolving tensions and the level of life satisfaction (socio-psychological component).

This article presents the results of a study of the determinants of energy transformation of coal-dependent regions. The case study was on the region of Silesia. This region is the main producer of hard coal and coking coal in Poland, with nineteen mines and numerous coal-fired power plants. Silesia is highly industrialized and urbanized, contributing significantly to Poland’s GDP. However, it is also a leader in terms of methane and carbon dioxide emissions. The study used an approach based on Alvin L. Bertrand’s ‘stress-strain’ theory, to investigate the socio-cultural stresses emerging as a result of the interaction of external factors and internal process dynamics within the region itself. Then, using Marc Wolfram’s systems-based analytical framework approach, the current transformative capacity of Silesia was analyzed. The theoretical framework adopted assumes that socio-cultural stress can be inferred from past situations of tension, influencing the social structure of the region and shaping accepted patterns of adaptation to change. Socio-cultural stress emerges as a key determinant of a region’s coping strategy and shapes its ability to transform in the long term. The research approach presented in this article adopts a comprehensive framework that integrates socio-cultural, socio-ecological and technological dimensions, providing a holistic view of a region’s transformation challenges and opportunities. The research was conducted using focus group interviews and a structured interview questionnaire. Participants in the research were individuals representing a diverse community of experts and activists involved in the energy transition process in Silesia, including local government officials, businesses, professional associations and social activists.