Poland agreed on support package for energy-intensive industries worth more than €1 billion

The Polish government has approved a support package for energy-intensive industries, in particular steel industry. It is planned to allocate 5.5 billion zlotys ($1.23 billion) for these purposes in 2023-2024, informs Polish WNP.

The funds are intended to mitigate high gas and electricity prices and will help companies maintain liquidity, profitability, jobs and production capacity.

«Polish industry is currently facing challenges primarily related to the energy crisis caused by the actions of the Russian Federation and the war in Ukraine. Although the current market prices for energy and gas are falling, many companies have long-term contracts with suppliers based on significantly higher prices compared to the previous year. The corresponding costs pose a threat to the financial liquidity of many enterprises in the industrial sector,» the Prime Minister’s office said in a memo.

Aid will be provided to enterprises that meet the specified conditions of energy intensity – i.e., whose electricity and gas costs are at least 3% of the cost of products, and their amount will not exceed the established limit. In total, about 3,000 companies will be able to use the support.

The Polish authorities recalled that a similar program had already been implemented in the country in connection with the costs incurred by enterprises in 2022. At that time, 195 companies received support in the amount of more than 2.5 billion zlotys, in particular, it was used by the steel, chemical and ceramic industries.

Assistance will be provided at the request of companies, the operator of the program will be the National Fund for Environmental Protection and Water Management.

As GMK Center reported earlier, Germany is launching an assistance program industry in conditions of significant expenditure on energy resources, which provides for the financing of projects of transition to carbon-neutral production technologies. The total fund of the project will amount to about €50 billion. The implementation of the program is planned for the next 15 years.

Also, European fund financed by Eurobonds is needed to support the energy transition of energy-intensive sectors such as steel industry. In this way, competitive asymmetry in the EU can be avoided, according to Antonio Gozzi, president of the Italian association of steel producers Federacciai.