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Minister Anna Moskwa met with miners at Lubelski Węgiel Bogdanka S.A.

The Minister of Climate and Environment Anna Moskwa spoke about maintaining the role of Polish coal as a fuel for the available power stabilizing the Polish Power System at Lubelski Węgiel Bogdanka S.A.

The Assumptions for an update of Poland's Energy Policy until 2040 adopted in March 2022 after Russia's aggression in Ukraine (PEP2040) pointed to the need to introduce a fourth pillar - energy sovereignty - into PEP2040. Among other things, the assumptions indicate a reduction in the role of imported gas as a transition fuel, while increasing the role of domestic coal. This will allow Poland to significantly improve both its trade balance and strengthen its energy sovereignty. There will be an unprecedented expansion of new capacity by 2040. There is a dynamic development of RES, which already produces nearly half of the electricity - RES capacity will reach about 50 GW in 2030. Due to the expected dynamic development of weather-dependent sources, the priority is to provide conditions for their safe increase in the National Power Grid. While keeping existing coal-fired units operational may require modernizations, extending the life of these units is essential to ensure energy security and sovereignty.

Before we have nuclear power and developed energy storage technologies, we need to ensure conditions for the safe growth of renewable energy sources in the Polish Power System. We are increasing expenditures on network modernization, and creating solutions to optimize the use of existing connection capacities. We have worked out solutions with the coal industry that will promote a fair transition.

 Minister Anna Moskwa said after meeting with miners.

Lubelski Węgiel Bogdanka is assuming an update of its strategy which will show us the directions of further development up to and beyond the key year 2049. We tentatively see our future based on the concept of a multi-commodity concern. However, for the next ten or so years, our core business will be the sale of hard coal, both to industry, the power sector and households. Under this plan, Bogdanka, with its new investment plans, will continue to be a stable employer for thousands of miners and an important link in ensuring electricity security for eastern Poland.

said Kasjan Wyligała, President of the LW Bogdanka Management Board.

In the coming days, the government will consider supplementing Poland's Energy Policy up to 2040 with an additional, third scenario for the electricity sector. The four pillars of PEP2040 are a just transition, building a zero-carbon energy system, improving air quality and energy sovereignty. In order to carry out the transition process smoothly in the face of war and commodity market disruptions, domestic coal is needed so that the new technologies can operate safely in the power system. PEP2040 envisions mobilization in the area of improving energy efficiency and rational use of energy, which should ensure a reduction in the growth of energy demand and thus investment needs.

LW Bogdanka S.A. highlights

Lubelski Węgiel Bogdanka S.A. is a leading hard coal producer in Poland that stands apart from its peers in terms of its modern and efficient mining. It is one of the largest Polish hard coal mines. Lubelski Węgiel Bogdanka S.A. chiefly conducts mining operations in terms of hard coal extraction, enrichment and sales. It supplies this raw material mainly to industrial offtakers. Supply contracts are long-term, and the product is sold to the commercial power sector and the industrial power sector.

The company has been listed on the Warsaw Stock Exchange since June of 2009. In August 2022, Lubelski Węgiel Bogdanka S.A. returned to listing on the WIG-ESG Index.

Since October of 2015 Bogdanka has been a member of the Enea Group, the second largest player on Poland’s electrical power market in terms of the generation of electricity, which manages the entire value chain on the electricity market ranging from fuel to the generation of electricity, distribution, sales (supply) and customer service.