In 2025, Polish grid operators refused to connect 107 GW of renewable energy capacity. The European Commission wants to accelerate electrification ninefold 

In 2025, Polish operators refused to issue connection conditions for projects with a total capacity of 107 GW – the highest figure on record – whilst nearly 1.4 TWh of renewable energy was curtailed as part of non-market reallocation. This illustrates the scale of the challenge facing Poland in the light of the EU’s Electrification Action Plan, presented in July 2026 by the European Commission. The plan aims to increase the share of electricity in the EU’s final energy consumption to 46 per cent by 2040 – an acceleration in the pace of electrification of around ninefold compared with recent decades. According to the Commission, electrification could reduce the EU’s expenditure on fossil fuel imports by as much as €260 billion a year by 2040 and lower the cost of electricity generation by around 20 per cent – as outlined in a new publication by the Institute for Reforms titled ‘Electrification, Polish Style: How to Use the EU Plan for Poland’s Effective Transition?’. 

Bills are rising faster than the grid 

Already today, grid charges account for 24–29% of a household’s energy bill in the EU, and this pressure is clearly evident in Poland: in 2025, the average price of electricity for households rose by over 11 per cent, and for 2026, the Energy Regulatory Office (URE) has approved a further 9.36 per cent increase in distribution tariffs. Given the scale of the necessary grid investments, the pressure on bills will continue to rise. 

The high upfront costs of electrification remain an equally significant barrier – for both households and businesses. New financing models will be needed, including social leasing or Energy-as-a-Service, as well as the effective use of revenue from the ETS2. 

“Electrification may reduce energy costs in the long term, but for many households and businesses, the high entry cost remains a barrier – the initial investment is simply too high. That is why we need models that allow these costs to be spread over time, such as social leasing for households or Energy-as-a-Service for businesses. It is equally important to make wise use of funds from the ETS2 – so that they support electrification whilst at the same time reducing the costs borne by consumers,” says Halina Jagielska, author of the Reform Institute’s publication. 

Poland needs its own roadmap 

For Poland, the EU plan partly sets out the direction of changes that are already the subject of national measures – many of the proposed solutions are not new to Poland. However, the proposed reform of network charges and tariffs will be particularly important, so as, on the one hand, to ensure funding for network development and, on the other, to avoid causing an excessive rise in bills and to create better conditions for consumer flexibility. 

Poland should also draw up a national roadmap for electrification, covering transport, buildings, industry and the energy sector, and identifying sources of funding. Growing demand for heat pumps, energy storage and electric vehicles could provide a boost to the development of Poland’s cleantech sector. 

Key actions for Poland 

In the coming months, Poland should, above all: 

• draw up Polish proposals regarding support for electrification and related targets as part of the work on the ‘legal framework for renewable energy post-2030’; 

• reform the system of network charges and tariffs, utilising available public funds, including revenue from ETS2; 

• develop a national electrification roadmap to coordinate actions in transport, buildings, industry and the energy sector; 

• create the conditions for the development of the market for electrification technologies and new financing models. 

The effective translation of the EU plan into national action will enable Poland not only to prepare for the acceleration of electrification, but also to use it to reduce energy costs, increase energy security and build the competitiveness of the Polish economy. 

We encourage you to read the full text of the Reform Institute’s new publication.