The article attempts to identify environmental conditions for the development of cogeneration companies in Poland. The article systematizes knowledge about environmental regulations which concern this issue. Within the framework of identified environmental conditions, the authors characterize issues related to national legislation that regulates the operation of cogeneration companies, as well as the requirements resulting from European Union and national regulations in this matter. These regulations, directly and indirectly, affect the long-term future of cogeneration companies and the energy sector as a whole. Undoubtedly, in the current state of environmental regulations in force, the key change for a power company such as a cogeneration company is to meet the requirements for the emission of harmful substances. The change was introduced in 2016 as a result of more stringent emission limits and the adoption of the IED (Industrial Emissions Directive). The implementation of recommendations of the BAT (Best Available Techniques) Conclusions in 2017 additionally tightened the required limits. Undeniably, the key period for cogeneration companies will be 2021 as per the implementation of imposed harmful substances emission’s limits. The article comprehensively discusses the conditions that substantially affect the long-term growth of a cogeneration company and are crucial when making assumptions intended to address strategic development issues in the domestic fuel and power sector.

The volatility of raw material prices and the rising prices of CO2 emission allowances when using fossil fuels to produce electricity and heat are still relevant problems for owners of generating units. The decision-making tools are used in the fuel purchase process. However, these tools should also consider environmental issues.
The article’s main objective is a quantitative analysis of the potential for reducing costs associated with supplying and using hard coal in public power plants as a result of considering the costs of environmental protection and CO2 emission allowances in the process of planning this fuel supply. A mathematical model was developed to optimize the supply of hard coal for the power industry. The tool and elaborated research scenarios made it possible to calculate and analyze the impact of considering the costs of emissions of harmful substances into the environment and CO2 emission allowances on the planning of coal supplies and the reduction of costs related to acquiring and using coal by public power plants. The calculation results were presented on the example of the Polish power sector.
The model’s results confirm that the appropriate selection of coals, taking into account the quality parameters determining the amount of emissions of harmful substances, reduces the amount of these emissions and the total costs of acquiring and using coal in electricity production. However, depending on the considered scenario, the scale of this impact varies. The results of the optimization of coal supplies to power plants and their proper interpretation may constitute an important contribution to making management decisions in energy companies.

The implementation of EU environmental regulations in the energy sector is challenging for the power industry of its member states. The main role is played by documents such as the Winter Package and, especially, the Directive of the European Parliament and of the Council on the emission limits of certain pollutants and the implementation of BAT conclusions in order to achieve the EU’s decarbonization objectives. These regulations impose a greater need to control harmful substances emitted to the atmosphere while using fossil fuels, including hard coal, which is the main fuel for domestic units. At the same time, the decline in domestic fossil fuel production and decrease in the quality of parameters of the hard coal makes it difficult to purchase the proper fuel for power plants. As a consequence, the costs of hard coal increase. The article presents the concept of a mathematical model that can be applied for the optimization of coal supplies. The employment of this model allows one to achieve cost reductions. One of the advantages of the proposed tool, in addition to minimizing the cost of purchase and use of hard coal, is its rational management, especially for companies producing and using hard coal.