Electricity Market Characteristics
Wholesale market
Electricity production
The volume of gross domestic electricity production in 2024 was at a higher level compared to the previous year, and amounted to 166,990 GWh (an increase of 2.1 % compared to 2023). In the same period, gross domestic electricity consumption amounted to 168,956 GWh and increased by 0.9% as compared to 2023. The growth rate of domestic electricity consumption was 2 % lower than the GDP growth rate in 2024, which according to preliminary estimates of Statistics Poland increased by 2.9%.
In 2024, the share of imports in the domestic balance of physical flows constituted 8.3 % of total revenue, while the share of exports constituted 7.3 % of electricity outflows. As compared to 2023, share of imports declined by 0.1 percentage point, while share of exports increased by 1 percentage point.
Structure of electricity generation, domestic balance of physical flows in cross-border exchange and electricity
consumption in 2023-2024 [GWh]
* 2024/2023; 2023 = 100.
** Based on URE, Ministry of Climate and Environment and trading companies’ data
*** A positive balance means a predominance of flows to Poland.
Source: URE based on PSE S.A. and Ministry of Climate and Environment, Energy Market Agency S.A. (2024).
„„Sytuacja w Elektroenergetyce” 4(129), IV quarters 2024.
The structure of electricity production in 2024 did change compared to 2023 - the share of generation in renewable energy sources and gas-fired power plants has increased. In renewable sources, production increased by 3.76 percentage points (from 21.52 % in 2023 to 25.28 % in 2024). A significant part of this increase was accounted for by other renewable sources, which mainly include the PV energy segment. About 40% of generated electricity is still based on conventional fuels, i.e. hard coal and lignite.
Comparison of the electricity production structure in 2022-2024 [GWh]
Source: URE based on PSE S.A. data
At the end of 2024, installed capacity of the national electricity system amounted to 72,188 MW, and the generated capacity – to 71,498 MW, which is an increase of 6.52 % and 7.82 %, respectively, compared to 2023. The average annual capacity demand was 22,882 MW with a maximum demand of 28,494 MW.
Installed capacity of domestic power plants (at the end of the year) [MW]
* year by year
Source: URE based on PSE S.A. data
Generated capacity of domestic power plants (at the end of the year) [MW]
* year by year
Source: URE based on PSE S.A. data
Entity structure of the energy wholesale market
In 2024, similarly to previous years, the largest market share in the electricity generation subsector was held by the PGE Polska Grupa Energetyczna S.A. group. However, the share of this group decreased by 1.6 percentage points compared to 2023. This change is the result of a significant reduction in gross electricity generation in 2024 compared to 2023 from fossil fuels, which dominate the generation mix of the described group.
Share of groups in the volume of electricity fed into the grid in 2023 and 2024
Source: URE and Ministry of Climate and Environment’s data
Prosumers
Prosumer photovoltaic installations are almost 100% responsible for the dynamic development of micro-installations in recent years.
At the end of 2024, more than 1,544,000 micro-installations were connected to the electricity grid in Poland, with a total installed capacity of more than 12.7 GW. 1,522,655 of such installations were used by prosumers - these types of installations also account for 11.3 GW of installed micro-installation capacity.
In 2024, RES micro-installations delivered more than 8.5 TWh of electricity to the distribution networks. 8.318 TWh of the power exported to the grid came from installations operated by prosumers.
At the same time, Distribution System Operators noted the appearance of three micro-installations used by collective renewable energy prosumers in 2024, whose total installed electrical capacity was 0.113 MW, and the total production of electricity introduced from these installations to the DSO network in 2024 was 87.768 MWh.
Number of prosumers in 2018-2024
Source: URE based on OSD’s data
Sales of electricity
The structure and mechanisms of market operation do not differ from the corresponding structures and mechanisms, which formed in a majority of other European states deemed competitive markets. Market participants have, on a non-discriminatory basis, wide access to various forms of electricity sales and access to information on volumes and prices at which electricity is contracted and sold on the wholesale market.
The tables below present shaping the directions of electricity sales in segments of generation and trading in the years 2022-2024.
Directions of electricity sales by generators and trading companies in 2022-2024 [TWh]
* “Other sales” includes electricity sold to TSO and DSOs, and sales to small local distributors.
** The data have been changed in comparison to the data in the Report of the President of URE for 2023 due to the correction of data by the audited entities.
Source: URE and Ministry of Climate and Environment’s data
Sales markets
Total electricity volume in all transaction concluded in 2024 on all sales markets of TGE S.A. (Polish power exchange) amounted to 131.7 TWh, which is a decrease by 10.7% compared to 2023 (147.5 TWh).
In 2024, TGE S.A. operated the following electricity sales markets:
- Single Intraday Coupling (SIDC) in the XBID model,
- Day Ahead Market (DAM)
- Electricity Forwards Market of the Organized Trading Facility (EFM OTF), including in the auction system.
In 2024, 44 entities actively participated in trading on electricity markets operated by TGE S.A.
The largest volume of electricity was traded at EFM OTF. In 2024 29,375 transactions were concluded on that market (together with auctions), and the total volume of electricity trading was 81.98 TWh. The volume-weighted average transaction price of BASE Y-25 contract in the entire year 2024 was at the level of 530.00 PLN/MWh, while in 2023 the volume weighted average transaction price of the corresponding BASE_Y-24 forward contracts amounted to 642.19 PLN/MWh.
In 2024, 1,478,849 transactions were concluded on the DAM. Total volume of electricity traded on DAM amounted to 47.10 TWh, what means a decrease by 19.3 % compared to 2023. Volume-weighted average price of electricity on DAM in 2024 amounted to 424.94 PLN/MWh and was lower by 108.67 PLN/MWh in comparison to 2023 when this price was 533.62 PLN/MWh.
On SIDC, 527,362 transactions were concluded in 2024, and total volume of traded electricity amounted to 2.61 GWh, which is a decrease by 45.8% compared to 2023.
Bilateral contracts
Bilateral contracts concluded directly between market participants create the so-called OTC market (over the counter). In 2024, volume of electricity in contracts concluded on the OTC market, excluding intra-group contracts, amounted to 19.9 TWh and was higher by 0.5 % in comparison to 2023 (19.8 TWh).
Retail market
Electricity supply and delivery
At the end of 2024, a total of 19,299,212 energy consumption points were connected to the National Electricity System, of which 87% (16,790,297) were household points. The volume of electricity delivered to final customers connected to the network of the distribution system operators’ was 149,395,920 MWh.
The supply side of the retail energy market consists of energy suppliers offering the commodity to final customers. This group includes six suppliers operating within groups, jointly with distribution system operators, but as separate legal entities. The second group consists of suppliers in entities that are also distribution system operators (in 2024, there were 184 of them), and the third is independent electricity suppliers − entities not related to distribution activity in Poland.
The average price for all customer groups in Q4 2024 was above the price level from Q4 2023 (an increase of 6.35 %), with the price of energy as a commodity increasing by 2.47 %, while the average increase in the distribution fee quarter-on-quarter was slightly over 12.4 %.
Throughout 2024, legal instruments introduced in response to the extraordinary situation in the European and domestic gas and electricity markets since February 2022 continued to operate, with a focus on limiting electricity cost increases for households and public sector organizations.
In the first half of 2024, electricity prices and tariff rates for households were frozen at 2022 levels (412 PLN/MWh), up to predefined consumption limits, with the maximum energy price set at 693 PLN/MWh after exceeding the predefined limits. In the second half of the year, pursuant to the Act of 23 May 2024 on the Energy Voucher and Amendments to Certain Acts for the Purpose of Restricting the Prices of Energy, Natural Gas and Heat, the consumption thresholds were removed, and the maximum electricity price was set at 500 PLN/MWh for households. In the case of local government units, public sector institutions and small and medium-sized enterprises the price cap at 693 PLN/MWh was applied for entire 2024.
Electricity prices and distribution fees applicable to customers with comprehensive contracts [PLN/MWh]
Source: URE based on Ministry of Climate and Environment’s data
“Back up” sales
An important institution of the electricity market is the “back up” sales, guaranteeing the customer continuity of energy supply in cases not attributable to the customer (e.g. financial difficulties of the supplier resulting in the inability to continue operations). The back-up supplier is indicated by the final customer in the distribution agreement or comprehensive agreement from the list of suppliers offering back-up sales.
During 2024, the launch of back-up sales and sales under Article 5ab of the Energy Law Act concerned 72,787 energy consumption points, of which 27,824 points were assigned to households.