Poland Drops Three Spots to 18th in Renewable Energy Investment Ranking

Poland has fallen to 18th place in the Renewable Energy Country Attractiveness Index (RECAI) by EY, down three positions from the previous year. The RECAI, published since 2003, assesses the world's 40 largest markets for renewable energy investment attractiveness. The energy sector transformation in Poland is estimated to cost PLN 1.25 trillion by 2050, according to EY.

The United States continues to lead the ranking, with China moving up to second place, and Germany dropping to third. Belgium rose four spots to 17th, while Argentina climbed three places to 26th due to its new government's economic policies.

EY's report highlights that global investments in green energy reached USD 1.8 trillion last year, with renewable energy capacity increasing by a record 507 GW, two-thirds of which is solar. Despite these advancements, the world remains far from meeting the 2023 COP 28 goal of tripling global renewable energy capacity by 2030. Power grid inefficiencies are a significant obstacle, requiring European investment in distribution networks to double to €67 billion annually by 2025.

EY partner Jarosław Wajer emphasized the need for extensive modernization of Poland's power sector, including generation, distribution, and transmission networks. Financing this transformation is feasible through energy companies, financial institutions, and individual investors. The rapid electrification of industry, transport, and households, coupled with data center construction, will nearly double electricity demand by 2050. Network capacity, management systems, and energy storage will be crucial.

Sebastian Jasinowski of EY Polska noted the attractiveness of battery energy storage systems (BESS) investments in Poland, driven by capacity market auctions, new system services, daily energy price variability, and EU funding. Early energy storage facilities will benefit from high initial revenues, enhancing investment returns.

Source: Do Rzeczy