Excellent Analysis of Inevitable Bankruptcies in the Polish Coal Sector

The politicians cannot face the truth. But every good analyst already knows the outcome of the faltering coal sector in Poland. Less coal needed every year, higher priced domestic coal-fired electricity than our neighbors energy prices, most mining of coal cost more per ton than the market value, massive negative cash flows from the state-owned mines..... the end will not be pretty.

This latest detailed article in "High Voltage" lays out the numbers.



By connecting the electricity utilities owned by the state to the mines going bankrupt the Government has basically used the financial resources of the utilities to achieve a political goal which will have a bigger economic price tag every year, before it hits bottom. The state-owned utilities have already signaled the same inevitable problem with their aging coal blocks as we have seen in Western Europe - a write-down of unprofitable assets. This occurs in the face of the Polish energy sector needing over 100 billion PLN to re-structure, re-build and re-organize.

Throw in the animosity of the Polish parties to international financial investment in the sector and the future seems more than a bit problematic.

Comments

Post a Comment

Popular posts from this blog

Image
  TWITTER LINKS FOR THREADS OF RUSSIAN INVASION OF UKRAINE (UPDATED November 2023) NOTE: IF thread does not open automatically, copy link and paste to open Not Our war?    Ukraine aid is not major budget issue No one is making Ukrainians fight "Mighty Russia"? The Two Armies The war is not an unbreakable stalemate The United States does not provide proportionally more aid  Things Some Republicans Get Wrong The MAGA disconnect Russia is Losing Badly Bogus Tucker Carlson claims You have been lied to Debunk of bioweapons claim Zelensky thread Aid auditing & control UKR weapons inspections & tracking   Ukraine Nazi rebuttal WEF thread   RM propaganda thread   Fake war
Read more
Image
                     CAN REPUBLICANS ENDURE THE COST OF  NOT  SU PPORTING UKRAINE?                                                                         Randy M. Mott [i] Originally written in October 2022      At this point in time, the Ukrainian army is humiliating Putin’s army and dramatically reversing his invasion. Displaying incredible courage and at the same time patience, the Ukrainian soldiers have quickly learned mastery over NATO and especially American weapons that have made the difference on the battlefield. Long-range precision artillery and rocket fire have offset the Russian advantage in the number of guns, then have overwhelmed their command-and-control centers, ammo dumps and now troop concentrati...
Read more

Hitting Reality: Polish Energy Policy Meets the Facts

Image
     At some point, facts matter. In the end, reality has a way of asserting itself. Senator Everett Dirksen (for whom a US Senate office building is now named) was asked on one election night to comment on his early lead in the voting. He told the story of two Irishmen working on a fifteen story building. O'Malley falls off the top floor and his colleague O'Reilly starts running down the stairwell to try to help him. O'Reilly sticks his head out and yells to O'Malley, "how is it going?" O'Malley says "so far, so good...." as his sails to the ground below.     Many political myths employed by politicians in Poland on national energy policy are about to hit the ground as well . Because the Economic Summit is in Katowice this week, we will hear all about the importance of coal to Poland. An historical fact, for sure. But a ever-diminishing premise at this point. Less Polish coal is mined every year. Polish coal costs more to mine and is of po...
Read more