The Polish energy sector. It’s time to build an ecosystem, not put out fires

18 September 2025 | Knowledge, News

Poland’s energy transition represents a historic opportunity, with investments totalling hundreds of billions of zlotys. However, a fundamental change in mindset is required for this process to be successful: a shift from a reactive and chaotic approach to a strategic and integrated one. In this article, Łukasz Młynarkiewicz analyses the key barriers and shows how they can be transformed into an impulse for building a modern and secure energy sector based on a stable ecosystem.

Law as an operating system, not a maze with pitfalls

The current legal environment in Poland poses one of the biggest challenges to long-term infrastructure projects. Investors are struggling with ‘legislative inflation’, whereby constant political pressure results in unstable and unpredictable regulations being established. For projects with a life cycle of several decades, such chaos creates enormous risks and costs.

The solution lies not so much in deregulation, but in a change in the philosophy of law-making. We should begin to view the law as a kind of platform, or even an operating system. This would consist of:

  • A stable foundation – acts that define unchanging goals and principles which build market confidence
  • Flexible modules – ordinances updated by experts in response to innovations, enabling adaptation without disrupting the core of the entire system

The key is to move away from legislation based on intuition towards legislation based on data and evidence. Rather than consulting on finished drafts, the market and the public should be involved in creating them from the outset. Only then will the law become an instrument that supports development rather than hinders it.

Renewable energy sources trapped in the grid. How can green energy be unlocked?

Poland has enormous renewable energy potential, but the system is preventing it from being realised. The biggest barrier is not a lack of sun or wind, but an outdated and inefficient grid infrastructure designed decades ago for a centralised system, which is unable to cope with thousands of dispersed sources. This results in new projects with enormous capacity being refused connection on a massive scale.

How can this deadlock be broken? Action is needed at two levels:

  • Rapid implementation: Solutions such as cable pooling, whereby a single connection is shared between a wind farm and a photovoltaic farm, must become standard practice. This will unlock the grid’s potential without the need for costly, years-long expansion projects
  • Strategic vision: We must transform the grid into the economy’s smart nervous system. This will require investment in digital management and the creation of a market for flexibility services, in which prosumers and small businesses can earn money by helping to balance the system. A flexible grid will attract battery factories, data centres, and other key sectors of the economy of the future

Nuclear power: A great opportunity, but the devil is in the detail

The Polish nuclear energy programme, which fortunately enjoys growing support, is a step in the right direction. However, the vision alone is not enough. For the project to be successful, the updated strategy needs to be refined in several key areas, such as:

  • Financing model: The Contract for Difference (CfD), which is key to raising capital, must be approved by the European Commission and this requires the project schedules to be made more realistic
  • Life cycle safety: The programme must address every stage of the process, from developing a national nuclear fuel supply security strategy to resolving the issue of waste management. The current national plan is outdated in this respect and, without specifying the location of the waste repository, obtaining a licence to operate the power plant will be impossible
  • Small modular reactors (SMRs): Delaying the SMR strategy creates a vacuum and discourages private investment, for which a clear legal framework is urgently needed

Polish capital: We have an opportunity to build an ecosystem, not just a list of suppliers

Discussions about the participation of Polish companies in the energy transition, particularly in the nuclear project, often centre on percentages. However, this is a distraction because the main goal should be for Polish companies to use individual projects as a stepping stone to enter the global supply chain, rather than trying to gain a specific share in them.

Rather than fighting over percentages, we should develop integrated industrial ecosystems centred on key technologies. One example is the ‘Pomeranian Offshore Hub’, which will connect ports, factories, research centres and service companies. This is the only way to build strong Polish capital that can compete internationally. The role of advisors and lawyers is therefore to develop smart contractual frameworks that will enable the creation of such clusters.

Fortress 360: How can we protect a nuclear power plant in the 21st century?

Security at nuclear power plants is another key area that requires the development of an integrated, multi-level shield to protect such strategic facilities in the following four dimensions:

  • Physical: Active defence systems capable of neutralising modern threats such as drone swarms or hybrid attacks, designed in cooperation with the military and security services
  • Digital: Cybersecurity built into the project’s DNA from the outset (security by design), rather than being added as an external layer
  • Market: Creation of a nuclear insurance pool with state guarantees, given that the scale of the risk exceeds the capabilities of the Polish or European insurance market
  • Institutional: Ensuring the continuity of the project across political cycles, for example through an independent implementation agency that will protect it from the consequences of short-term politics

People – the most important infrastructure

In our efforts to modernise the energy sector, we often focus on steel and concrete. However, it is the skills gap that is the real bottleneck and the biggest challenge. There is a global war for talent: nuclear engineers, network cybersecurity specialists, and managers capable of leading megaprojects are in high demand.

We must start treating human capital as an integral part of critical infrastructure, on a par with transmission networks. Without strategic investment in people, even the best technologies and largest funds will not suffice. Therefore, industrial policy must be inextricably linked to education policy. Otherwise, we will build a colossus with feet of clay.

Source: Rynekinwestycji.pl

Date: September 2025

Any questions? Contact us

Latest Knowledge

Banking sector overview | Banking today and tomorrow | June 2026

According to a statement published by GPW Benchmark, the reference rate administrator, and the Polish Financial Supervision Authority (KNF), which oversees the administrator, 31 December 2036 will be the last day on which the WIBID and WIBOR rates will be provided for all key fixing periods: 1 month (1M), 3 months (3M) and 6 months (6M).

How to correctly calculate length of service from 1 May 2026

New rules for calculating length of service have applied to private sector employers since the beginning of May 2026. With companies continuing to express concerns about the new framework, the Ministry of Family, Labour and Social Policy has addressed the most common questions. We look at the issues that are (still) troubling employers and how we can help.

Tax settlement agreement: A new tool in the General Tax Code

A draft bill amending the General Tax Code (No. UDER110) has been submitted for consideration by the Council of Ministers. The bill introduces the tax settlement agreement, a new form of amicable dispute resolution between taxpayers and the tax authority. The draft is open for inter-ministerial review and public consultation until 19 June, with the proposed date of entry into force being 1 January 2028. Below, we examine who may apply for a settlement agreement, when, and on what terms, and how the process may work in practice.

A revolutionary reform of Poland’s capital market – ETFs and the Qualified Investment Fund

Poland’s capital market is on the cusp of one of the most significant reforms in recent years, which will fundamentally reshape the regulatory framework for ETFs and introduce an entirely new investment vehicle: the Qualified Investment Fund (QIF/KFI). This is a response to market demands and presents an opportunity for Poland to close the gap with countries such as Luxembourg and Ireland, with the overarching objective of boosting competitiveness and stemming the outflow of investment capital abroad. The new regulations aim to deliver greater flexibility for investors and fund managers alike, while also aligning with current market trends and European standards. We examine what is changing in practice and what it means for all market participants.

Directive 2024/825 – the European Union’s response to greenwashing

Greenwashing poses one of the most significant challenges to the consumer protection framework in the European Union. As customers become increasingly environmentally conscious, brands are ever more inclined to leverage this interest by invoking the language of environmental protection, sustainable development and climate neutrality. Yet these claims do not always reflect the actual characteristics of their products or services. The EU has sought to bring systemic order to this area by clarifying the information obligations of traders and broadening the list of practices deemed unfair. We consider what these changes mean for businesses in practice.

GLI – AI, Machine Learning & Big Data 2026: The Polish perspective on artificial intelligence law

Global Legal Insights (GLI) is a series of international publications by the Global Legal Group (GLG), authored by legal practitioners from around the world. It offers an up-to-date and highly practical guide to the applicable regulatory landscape, complemented by expert commentary on specific areas of law across different jurisdictions. In short: legislation and actionable know-how in one place.

Banking sector overview | Banking today and tomorrow | May 2026

“The end of the dream of free housing” – this is how the Polish Bank Association (Związek Banków Polskich) has characterised Thursday’s judgments of the Court of Justice of the European Union in cases concerning whether the claims of financial institutions against CHF mortgage borrowers have become time-barred.

Return deposits like VAT? The elephant in the room: the risks of the deposit-return system

The deposit-return system was supposed to be simple. Eco-friendly. Leak-proof. Tax-neutral. However, it took just a few months for serious doubts to emerge. The first loopholes are no longer just theoretical, they are in plain sight. The mechanisms for abuse can be described quite precisely, and the scale of potential losses may be much greater than anticipated. Below, we examine where the system is losing control and how this can be addressed.

Contact us:

Lukasz Mlynarkiewicz, PhD

Lukasz Mlynarkiewicz, PhD

Attorney-at-law / Partner / Head of the Infrastructure, Energy, Environment and ESG Practice Group / Nuclear Energy

+48 788 260 125

l.mlynarkiewicz@kochanski.pl