Grid operator unveils new strategy: Energy system ready to operate without coal and gas in a decade

The primary objective of Polskie Sieci Elektroenergetyczne (PSE) over the next ten years is to prepare Poland’s energy system to operate safely without coal- and gas-fired power plants. Achieving this will require revolutionary changes in management practices and investments in infrastructure that will determine the system’s key parameters.

Polskie Sieci Elektroenergetyczne (PSE), the operator of the country’s high-voltage transmission lines responsible for ensuring energy security across all regions, has announced its strategy through 2040. The plan envisions that by 2035, the Polish energy system will be ready to operate on a zero-emission generation mix.

This represents a revolution in the management of the national grid. In October 2025, 60 percent of electricity produced in Poland came from coal, and 12 percent from gas. Coal- and gas-fired power plants not only generate electricity but also perform critical functions for grid stability, helping maintain its key parameters. These roles will need to be taken over by other technologies.

“In ten years, renewable energy sources will produce around 60 percent of Poland’s electricity. We need to prepare the system to ensure the grid can operate stably without conventional sources. They will still be necessary, but primarily to maintain the balance of power and energy during periods of lower renewable generation, rather than to provide inertia [the system’s ability to absorb power disturbances] or manage voltage levels,” explains Grzegorz Onichimowski, CEO of PSE.

A revolutionary shift

PSE estimates that by 2035, the share of renewable energy in Poland’s electricity production will reach 66 percent, up from 29 percent in 2025. Periods when the vast majority of electricity demand is met by renewables will become increasingly frequent and prolonged. The system must therefore be ready to operate most of the time without relying on conventional coal- or gas-fired units. PSE’s strategy foresees that conventional power plants will remain in the system but will serve only a supplementary role to other generation sources. Grid stability will no longer depend on them.

Achieving this requires the deployment of new technologies capable of maintaining the same level of security currently provided by coal-fired power plants. Mismanagement of a system with a high share of intermittent energy sources could lead to disaster. Spain and Portugal experienced this firsthand in April 2025, when a nationwide blackout occurred. Experts estimate that a total blackout in Poland could cost the economy up to PLN 40 billion (EUR 8.6 billion) per day.

What is PSE’s plan?

In the future, renewable energy installations and energy storage facilities will actively shape grid parameters by operating in so-called grid-forming mode. This means they will be capable of initiating and stabilizing grid operations even in the absence of an external, stable voltage and frequency signal.

Before grid-forming technologies become widespread, the transmission system operator will gradually introduce synchronous condensers into the system – essentially motors operating without a prime mover. Such devices can shape key grid parameters, including inertia (the system’s ability to absorb power disturbances), short-circuit capacity (essential for maintaining voltage stability and ensuring the proper functioning of grid protection systems), and overall flexibility. PSE also argues that components of coal-fired units being retired from service could be repurposed to provide these types of services.

Electricity must be affordable

Another objective is to foster competitive electricity prices and a stable investment environment for Polish companies. According to PSE, prices should serve as an information carrier – reflecting the current state of the power system and signaling to both generators and consumers how to respond: when to increase production, when to curb consumption, and when to make long-term investments in flexibility. The operator acknowledges that not all customers will be able to purchase electricity at prevailing market prices. Mechanisms to protect vulnerable consumers will therefore also be required.

“The future is electric – electrons, not fossil fuels, will power the economy, heat our homes, and drive our transport. Access to affordable electricity will determine Poland’s development over the coming decades. As the transmission system operator, we must ensure that keeping costs under control does not undermine security, and that consumers are never left without power,” the head of PSE stresses.

He adds that we are living through a period of digital revolution and unprecedented growth in artificial intelligence. The number of data centers is rising rapidly, turning them into a new energy-intensive industry. Heat pumps, air conditioning, electric vehicles, industrial decarbonization, and battery storage will all reshape how electricity is used.

Easier access for investors

The process of connecting new generation sources to the grid also requires reform. Limited access to the network is one of the biggest barriers to the further development of renewable energy in Poland. In 2026, PSE will launch an electronic system for handling grid-connection applications, along with a comprehensive data management system.

“As part of implementing our strategy, we will continue to reform the grid-connection process. Today, this process is inefficient and in need of a comprehensive overhaul. Above all, we want to gain the ability to actively shape the power system and the mix of sources connected to it, so that consumers can obtain electricity at the lowest possible price – taking into account not only generation costs, but also network costs and other tariff charges. In our view, the issuance of grid-connection conditions should be based on competitive tenders, in which not only price would be considered, but also factors such as project delivery timelines or the involvement of local companies,” explains Konrad Purchała, Vice President of PSE.

By 2040, PSE plans to commission 7,000 kilometers of new transmission lines and 28 substations. It will also modernize nearly 3,500 kilometers of existing lines and expand or refurbish close to 100 substations.

A Brussels office and climate neutrality

In 2026, PSE will present a Roadmap for the Electricity Market, outlining the need for new market products. The operator also plans to open an office in Brussels, begin cooperation with district heating companies, and support public administration in designing new support mechanisms for generators and flexibility providers. In addition, the company will establish a Balancing Market Advisory Council to support the rollout of solutions that improve the quality of system balancing through electricity trading.

The transmission system operator also intends to adopt a climate policy that will enable it to achieve climate neutrality by 2040.

PSE has announced that it will rely on external financing – such as loans – to fund its investments. This marks a shift from its previous approach, which was based primarily on revenues from fees embedded in electricity bills.

“One of our objectives is to carry out investments in a way that places the smallest possible burden on consumers. That is why we will use external financing, including non-repayable funds. In 2026, we will also develop a long-term financial strategy covering both our ambitious investment program and the implementation of all strategic initiatives,” says Agnieszka Okońska, Vice President of PSE.

Key Takeaways

1. Polskie Sieci Elektroenergetyczne (PSE) has unveiled a new strategy with a horizon extending to 2040, though its core objective is to be achieved five years earlier. By 2035, Poland’s energy system is to be ready for safe operation on a zero-emission generation mix – without coal- or gas-fired power plants. Conventional units will still be needed to generate electricity during periods of lower renewable output, but they will no longer provide services related to maintaining grid parameters.
2. Under PSE’s strategy, renewable energy installations and energy storage facilities will ultimately replace coal-fired units in actively shaping grid parameters. Until that transition is complete, the system will require the deployment of synchronous condensers – motors operating without a prime mover—to ensure, among other things, appropriate voltage and frequency levels across the grid.
3. Other pillars of the strategy include streamlining the connection of additional renewable installations to the grid, regulating the balancing of electricity purchases and sales by consumers, achieving climate neutrality by 2040, and opening a PSE office in Brussels.