The world is changing the direction of energy development more and more rapidly. Coal and oil are giving way to cleaner and more modern solutions. Rising fossil fuel prices, climate crises and EU regulations are causing companies and households to look for alternatives. This is where renewable energy sources come in. In recent years, RES technology has ceased to be just a fashionable buzzword and has become a real opportunity for savings and energy security.
In this article, RES becomes the main protagonist. You will find out which solutions are among the most popular and what costs and benefits they bring. I will present the five energy sources of greatest interest to investors and users. You will see where cost-effectiveness stands at the highest level and what challenges accompany these technologies.
Solar energy – potential and real savings
Solar energy has undergone a revolution in the last decade. Photovoltaic panels are getting cheaper and their efficiency is increasing. Installing PV on the roof of a house can reduce electricity bills by up to several tens of per cent. On a large scale, solar farms produce electricity that competes in price with coal power. More and more investors are choosing this direction.
Poland is not one of the countries with the highest insolation in Europe, but the technology allows benefits to be reaped even in our climate. It is worth noting that solar energy gives predictable running costs and the payback time of the investment often does not exceed 7-9 years. In addition, installations can be expanded as required.
The biggest challenge remains the dependence on the weather. On cloudy days and at night, production drops to zero. The solution is becoming energy storage and balancing systems that improve the efficiency of the whole system. Despite this, solar energy is a pillar of RES development in Poland and worldwide.
Wind energy – the power of nature in practice
Wind energy has been growing rapidly over the years and its profitability continues to increase. The cost of building a wind farm has fallen and modern turbines produce electricity at lower wind speeds. This has made more and more land suitable for investment. In many countries, onshore wind has become one of the cheapest sources of electricity.
In Poland, wind farms are producing an increasing proportion of electricity. The north of the country in particular has the potential to attract investors. Large offshore projects in the Baltic Sea are also planned. These can ensure a stable electricity supply for years to come.
However, not everything looks ideal. Wind energy requires adequate grid infrastructure and public acceptance. Noise from the turbines or the impact on the landscape often provoke protests. Nevertheless, increasing cost-effectiveness is giving wind energy an increasingly important role in the energy mix.
Hydropower – stability and longevity
Hydropower is one of the oldest renewable sources. Hydropower plants are in operation in many countries and provide stable energy for decades. Large dams also act as storage facilities that can be activated when demand is at its peak. In this way, hydroelectric power plants increase the security of the entire power grid.
The cost-effectiveness of hydropower is due to the long life of the plant. Power plants often operate for more than 50 years and generate low operating costs. In mountainous countries, hydroelectric power plants form the basis of the energy mix. In Poland, the potential is limited, but there are places where hydropower still plays an important role.
The biggest barrier is the high initial cost and environmental impact. The construction of a dam changes local ecosystems and requires large investments. Therefore, in Poland, the development of hydroelectric power plants is limited to smaller projects and upgrades of existing plants. Despite these challenges, hydropower remains an important part of the global mix.
Biomass – energy from nature
Biomass makes it possible to use what we have hitherto regarded as waste. Agricultural residues, wood or organic residues become fuel for power and heating plants. In this way, biomass provides not only energy, but also a way of managing raw materials that would otherwise go to landfill.
The profitability of biomass depends on the availability of raw material. In agricultural and forestry regions, logistics costs are low and plants operate stably throughout the year. In Poland, biomass plays a special role in the heating sector, where it often supplements or replaces coal. Companies and households appreciate its predictability and local character.
At the same time, the disadvantages of this solution cannot be ignored. Biomass generates emissions, albeit lower than coal. It also requires a well organised supply chain to keep costs low. Without this, the investment loses its attractiveness. Nevertheless, biomass still remains one of the pillars of RES development in Poland.
Geothermal – energy from deep underground
Geothermal is a source that gives heat and electricity almost continuously. Hot springs and geothermal resources make it possible to build power plants and heating systems. In geologically rich regions, geothermal forms the basis of the energy mix and provides very low operating costs.
In Poland, geothermal potential is concentrated in the Podhale region. There, installations are in operation that provide heat to local residents. The initial cost is high, but later the investor benefits from cheap energy for decades. In the long term, geothermal may prove to be one of the cheapest solutions.
Challenges arise at the exploration and drilling stage. Geological risks discourage many investors. Construction requires specialised studies and a long preparation process. This is why geothermal is developing more slowly than solar or wind energy. Nevertheless, it represents an extremely stable energy source.
RES in Poland – real opportunities
Poland is undergoing an energy transition. Coal still dominates, but the share of RES is growing. Photovoltaics is growing fastest, attracting individual and business investors. Wind farms in the north of the country are also gaining ground. Biomass and geothermal complete the mix, and hydroelectric power plants are mainly operating locally.
The cost-effectiveness of RES depends largely on regulation and support schemes. Subsidy programmes or feed-in tariffs encourage investment. In addition, the EU climate targets force the development of green technologies. In practice, this means more and more opportunities for companies and households.
However, the transformation requires huge investments in grids and energy storage. Only then can RES take a dominant role in the mix. Poland faces a great opportunity, but also a huge challenge.
Cost-effectiveness in figures
Energy production costs are falling. According to reports from the International Energy Agency, the cost of generating 1 MWh from solar or wind power is lower than from coal. Onshore wind farms often reach US$30-70/MWh. Large-scale photovoltaics compete with the cheapest fossil sources.
Hydro and geothermal power plants generate very stable and predictable costs. Although they require a huge outlay at the start, later they offer a cheap and reliable source of electricity. Biomass, on the other hand, is proving cost-effective in many places thanks to local resources and subsidies. Each of these solutions has its own characteristics, but one thing they all have in common: long-term savings.
The role of subsidies and tax breaks is also worth mentioning. Without state support, many investments would take longer and pay off later. Therefore, regulatory regimes directly influence the rate of RES development.
RES and the future of energy
The development of RES is changing the way we look at energy. Not long ago, renewables were associated with an experiment. Today, they are the foundation of the world’s energy future. Increased installed capacity, falling costs and increasingly better technology are making RES a winner in the clash with fossil fuels.
In the coming years, Poland and all of Europe must invest in new networks, energy storage and intelligent management systems. This will make it possible to maximise the potential of renewable sources. RES not only protects the environment, but offers real savings and greater independence. The transformation will not happen overnight. We need time to adapt the economy and infrastructure. But the direction is clear – the future belongs to RES.
FAQ – frequently asked questions about RES
Yes, in many cases it is cheaper to produce electricity from wind and solar than from coal. New investments often achieve lower unit costs.
Photovoltaics and onshore wind have become the most popular. Both sources have a fast payback time and adapt well to conditions in Poland.
Yes, but only in selected locations. Podhale is an example of a place where geothermal powers district heating systems and provides cheap energy.
Yes, if the raw material comes from controlled sources and transport does not generate high costs. Then biomass reduces emissions and makes use of local resources.