What will the future of Polish energy look like? Dariusz Marzec, CEO of PGE Polska Grupa Energetyczna, comments on the key challenges and directions of transformation.
Impact is one of the most important economic and technological conferences in Poland, gathering business leaders, representatives of public administration, the world of science and innovation. It is a space for debate about the future – not only in technological terms, but also social, economic and strategic. Every year, the importance of topics related to energy transformation, critical infrastructure security and the role of large state-owned companies in building the resilience of the economy grows.
During this year's edition of the event, a special place was taken by energy – a field that has been in the center of attention of both decision-makers and citizens in recent years. The challenges related to decarbonization, geopolitical instability, growing demand for energy and modernization of infrastructure require a clear vision and decisive actions. The president of PGE Polska Grupa Energetyczna Dariusz Marzec spoke on this matter, presenting the perspective of the leader of the power sector in the country on energy security, innovation and the future of the energy system in Poland.
Safe energy
In uncertain times, the issue of security is extremely important – in various sectors of the economy, including energy. The President of PGE emphasized that energy security is much more than just uninterrupted power supply. In an era of increasing geopolitical challenges, cyber threats and variability of climate conditions, it requires a systemic and holistic approach. He emphasized that today energy security should be understood as a complex, multi-layered system that includes both physical infrastructure and the digital layer as well as economic stability.
– Security is not only about physical protection of infrastructure against potential sabotage or attack, but also resistance to increasingly advanced digital threats. Systems controlling the operation of our generating units and distribution networks must be resistant to hacker attacks. Therefore, every serious investment in the energy sector must now include a cybersecurity component – emphasized Dariusz Marzec.
No less important are the issues of ensuring stable, uninterrupted energy supplies, especially in the context of the growing share of sources dependent on weather conditions. The President emphasized that energy security cannot be analyzed only from the perspective of infrastructure, but also the ability of the entire system to provide energy in a predictable and affordable way.
– Energy security also means stability of supply in all weather and economic conditions. This means having a well-balanced production mix and guaranteeing access to energy at a price that is not only socially acceptable, but also allows maintaining the competitiveness of the economy. We must avoid the threat of energy exclusion – the president noted.
Dariusz Marzec also referred to the recently famous blackout that affected Spain and Portugal. Although this topic has raised many controversies, including attempts to blame renewable energy, the president of PGE called for common sense and avoiding hasty conclusions. In his opinion, the real causes of the failure may be much more complex and require a thorough analysis.
– Blackouts are a very rare phenomenon on a European scale, because power systems are secured on multiple levels. At the time of the failure, Spain was exporting electricity, which proves that there was no shortage of power. In just 30 minutes, as much as 18 gigawatts went out of the system – and not because the sun stopped shining or the wind stopped. It had to be something much more serious, with a wide reach. We know what happened from a technical point of view, but we still don't know the cause. We have to wait for official reports – explained Dariusz Marzec.
The complexity of power systems means that even seemingly local instability can trigger a cascading effect and threaten the operation of the power industry in the entire region. However, as the president of PGE assured, Poland is well prepared for potential crises – thanks to an extensive reserve infrastructure and a security system.
– The power system operates as a coherent, integrated whole. When instability occurs at one point, the entire region is automatically shut down to prevent the problem from escalating. In Poland, we have emergency mechanisms: we have pumped-storage power plants, gas units, power reserves and interconnectors with neighbouring countries. All these elements allow us to respond flexibly in crisis situations – explained the president of PGE.
The context of energy security cannot be analyzed without reference to climate change and the growing number of extreme weather events. According to CEO Marzec, these are not completely new situations for the sector, but they require appropriate preparation of infrastructure and procedures.
– Extreme weather events have always been a challenge for the power sector, especially for coal-fired power plants that need large amounts of water for cooling. Today, there are more of these events, they are more violent, but that does not mean they are completely unpredictable. We are not dealing with something we have not experienced before – the most important thing is to be prepared for such situations – said Dariusz Marzec.
A new wave of investment
Energy transformation is not only a process of replacing outdated sources of generation with more environmentally friendly technologies. It is a deep, systemic reconstruction of the entire power infrastructure, the effects of which will be felt in every area of social and economic life. PGE, as the largest player on the energy market in Poland, does not limit itself to purely operational activities – the investments implemented are aimed not only at modernizing the sector, but also at strengthening technical competences, developing technological support and building modern foundations for the national economy for the coming decades.
– The entire distribution network in Poland is currently undergoing a fundamental transformation, comparable to the industrial revolution. Today, we manage it completely differently than five or ten years ago. Intelligent management systems that can respond in real time to unusual situations, supply interruptions or sudden changes in energy flows are becoming increasingly important. This requires new competencies not only from managers, but above all from technicians and engineers who operate this modern infrastructure every day – said Dariusz Marzec.
The scale and nature of PGE's investments mean that their impact goes far beyond the energy sector. The company is becoming a significant driving force in the Polish economy – both in terms of direct expenditure and the growth in demand for products, services and technologies. Thanks to its consistent approach to localizing the supply chain, a large part of the funds remains in the country and supports the development of Polish enterprises.
– As much as 85% of our investments in the distribution area go to domestic suppliers, which means that we support domestic industry and jobs. In the case of new gas blocks, half of the funds also remain in Poland. This shows that investments in the energy sector are a powerful development impulse for the entire economy – from large contractors to smaller companies providing specialist components and services – noted Dariusz Marzec.
One of the most important pillars of this strategy is the development of offshore wind energy. The Baltica 2 project, implemented by PGE in the Baltic Sea, has the potential to become a breakthrough undertaking not only due to its scale, but also as a symbol of modern and low-emission energy of the future. Offshore is an area that requires significant investments and advanced know-how, but can provide Poland with lasting and stable sources of energy.
– Offshore is essential if we are serious about energy transformation. It is not the cheapest technology, but it provides unprecedented scale and long-term stability of supply. Our Baltica 2 wind farm is 190 square kilometers of surface area at sea, located 40 kilometers from the shore. Such infrastructure simply cannot be physically built on land. It is an investment in the future that we need and for which we have no alternative – said Dariusz Marzec.
The development of offshore energy also requires the creation of an appropriate logistics and service base. PGE is actively expanding port infrastructure, which will not only serve offshore projects, but will ultimately become a permanent part of the national maritime economy. Such activities increase the resilience of the energy system and at the same time create new opportunities for other industries.
– We are building a modern connection infrastructure and expanding the Port of Gdańsk by 21 hectares – an installation port is being built there, which will be transformed into a container port after the project is completed – Marzec enumerated.
– We are also investing PLN 120 million in the service port in Ustka. It will serve not only the Baltica 2 farm, but also other projects that we plan to implement as part of the development of offshore wind energy. These are investments that will stay with us for decades – he added.
In the face of public debates on the direction of energy transformation, voices are emerging that Poland should focus on nuclear power and continue developing the coal sector as a “bridge technology”. President Marzec unequivocally responded to these proposals, emphasizing that the future of energy does not lie in one dominant source, but in a reasonably diversified mix that will provide flexibility and security.
– Coal in our assets will end in the second half of the 2030s. We must make decisions today on what to replace this capacity with. Energy transformation is not a sudden revolution, but an evolutionary change in the structure of the energy mix. Nuclear power has its place in it, of course, but it will not be an independent pillar of the system. We also need gas sources, developed storage infrastructure and dynamic development of renewable energy sources. Only such a composition will provide Poland with security, flexibility and resistance to market changes – emphasized Dariusz Marzec.
Direction – the future
Energy transformation is not a choice, but a necessity – this is the opinion expressed by the president of PGE, emphasizing that basing the future of Polish energy on coal is a road to nowhere. This raw material is becoming increasingly difficult and expensive to obtain, and its energy and environmental parameters are becoming less and less favorable.
– You can't dig hard coal to the core of the earth. We've been extracting it in Poland for over a hundred years – today it's deep, it's sulphated, and its exploitation is very dangerous. The claim that it can be used to build the country's energy security is pure political demagogy – said Dariusz Marzec.
As the sources of generation change, the structure of the energy system is also changing. While in the past, energy was transmitted from large blocks located mainly in southern Poland, today we are dealing with a distributed model in which energy is produced locally – throughout the entire territory of the country.
– Transformation is not only a question of how we produce energy. There used to be large sources distributing energy throughout the country, located in Silesia. Today we have hundreds of distributed generating units. Energy flows in all directions. This changes the logic of the entire system, which is why we invest so much in the modernization of transmission networks – explained the president of PGE.
The geopolitical environment is not without significance for the future of the sector. Political stability directly affects investment costs and the availability of financing, which may determine the pace and scale of transformation.
– We finance multi-billion projects, and geopolitical instability translates into the cost of money and the approach of financial institutions to long-term risk. Currently, we do not see serious threats, but we must remember that political uncertainty never favors the economy – concluded Dariusz Marzec.
The publication's partner is PGE
