(Bloomberg) -- Poland plans to remodel its energy market in a bid to accommodate growing demand for clean power capacity from global technology giants such as Alphabet Inc. and Microsoft Corp.
The country’s grid operator PSE wants the new system to be able to provide stable and reliable delivery of clear energy in the future, Chief Executive Officer Grzegorz Onichimowski said in an interview with Bloomberg News. That would help lure customers who are looking for uninterrupted electricity deliveries to the data centers they could build in Poland.
“They are coming to us and we’re discussing where they could locate their investments,” the CEO said. “Poland is high on their list but we need to offer them a guarantee of supply. What’s more, it needs to be emission-free electricity.”
In recent years, Microsoft and Alphabet’s Google have announced plans to develop cloud computing services along with data centers in Poland. Microsoft pledged to invest $1 billion in the country to provide expandable cloud services for eastern European businesses amid a consumer online spending boom.
The European Union’s largest eastern economy is currently rethinking its 2040 energy policy, with the Climate Ministry hinting it will mainly bet on weather-dependent wind and solar power. The previous government’s plan called for more than 1 trillion zloty ($257 billion) in investments to finance the energy transition by the end of next decade.
It’s not only data centers that need stable electricity deliveries, Onichimowski said.
ArcelorMittal SA, which operates Poland’s biggest steelworks, is seeking to replace coking coal with green energy as it electrifies its facilities. The country’s ambitious plan to raise military spending to 5% of gross domestic product next year makes it an appealing case for steelmakers.
Clean Transition
Onichimowski is urging the EU to introduce a new capacity market that would guarantee certain income for power plants, like gas units, for being available to the operator. However, the mechanism would also require them to transition into cleaner fuel, including hydrogen, over 10 years or so.
That would help develop a new market model, offering two products: energy and capacity. In case the EU doesn’t agree to this, Poland will still need to introduce a similar set-up locally to help it replacing aging coal units, he said.
The country’s plan to build its first 150 billion zloty nuclear plant fits well into surging demand from new customers seeking stable supplies. They will help the plant work at full capacity, according to Onichimowski.
“Even though we’ll have a big surplus of energy production in the system, there will be clients willing to pay for electricity from the nuclear plant as a baseload,” he said. “Especially those who aren’t that flexible, like data centers.”
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