Electricity Prices and Industrial Competitiveness in Poland

Power prices and the competitiveness of Polish industry

  • Project Duration: 04/2014 - 11/2014

Industrial competitiveness is at the centre of the Polish debate about the future (and the logic) of climate and energy policy. There is a widely held opinion that low prices are the most important condition for a thriving industry. The debate about the effects of power prices on industry is very complex. The goal of this project was to structure the topic and to understand it better. The project was developed as part of the Forum for Energy Analysis (Warsaw), a partner project of Agora Energiewende.

The study determined that electricity makes up around 2.2 percent of general costs for companies. For around 10 percent of companies, power prices are very important. These are energy intensive industries, which already profit today from exceptions, so-called carbon leakage instruments, regulated by national governments.

The study also showed that electricity prices are not the most important factor for competitiveness and that they are not equally important for all branches. The reliability of the power supply and the connection to the network are more important. The study also analysed which industry branches in Poland are well positioned for the future and will therefore further advance the Polish economy.

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