Poland’s new district heating strategy sets an ambitious target of 5.5 GWt in power-to-heat technologies by 2040, but the industry warns its success hinges on three interconnected conditions: grid connection availability, fair network tariffs, and robust heat network expansion, according to Marcin Laskowski, president of the Polish District Heating Association (PTEC).
The draft Strategy for the Transformation of District Heating until 2040, released by the Ministry of Energy in late June 2026, has concluded its public consultations. The document outlines a decarbonisation path for system heating, aiming for a 52.2% share of renewables in district heating by 2040, along with 5.5 GWt of power-to-heat capacity (heat pumps and electrode boilers) and 576 GWh of heat storage.
Marcin Laskowski welcomed the strategy as a long-awaited and correctly directed document but stressed the need for more detailed implementation paths. He highlighted that the 5.5 GWt target, while aligned with EU electrification goals, requires careful planning to become feasible.
Three hurdles for power-to-heat
– The first condition is the availability of grid connection capacities – achieving 5.5 GWt means connecting large single-point consumers mainly in big cities, while competing for the same capacities from transport, industry, energy storage and data centres – said Marcin Laskowski.
The second condition concerns the economics of using energy networks. Laskowski noted that the strategy correctly identifies power-to-heat as a tool to absorb cheap surplus renewable energy, but this advantage is undermined by current tariff structures.
– Distribution and transmission fees, for large-scale heat pumps and electrode boilers, constitute a significant part of the heat production cost. When network tariffs do not reflect the real-time situation in the system, the benefits of low energy prices during surplus hours are largely consumed by network costs – he explained.
PTEC therefore calls for tariffs adapted to flexible consumers, taking into account the seasonal variability of these installations.
– The third condition is the development of heat networks. New electric sources, heat storage and low-temperature solutions require a network capable of cooperating with these technologies, and the scale of investment needs in this area is comparable to investments in generation sources – Laskowski added.
Gas as a transition fuel and the cost challenge
Alongside electrification, the sector must maintain its ability to support the security of the national power system and meet heat demand in locations where electrification potential is limited. The strategy points to natural gas as a transition fuel.
– In many district heating systems, especially in large cities, natural gas remains the only technology allowing a rapid replacement of retiring coal units while maintaining security of heat and electricity supply – said Laskowski. He called for clarifying the role of cogeneration units after 2035 and addressing the issue of decarbonised gases.
PTEC supports the strategy’s proposals to relax EU taxonomy requirements for gas units to be adapted to renewable fuels by 2035. However, Laskowski warned that biomethane and hydrogen prices are significantly higher than natural gas, and the market development pace is highly uncertain.
The Ministry of Energy estimates the total cost of transforming the district heating sector at between PLN 197 billion and PLN 231 billion by 2040, depending on the scenario, covering new generation sources, networks and heat storage.
Źródło: WNP.PL, Fot. PGE Energia Ciepła
