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Subsidies or Death: Poland’s Energy Race Against Germany

Poland is losing ground to Germany in electricity costs as energy prices soar 15% higher in Poland.

Rising Energy Costs

The energy sector is becoming an increasingly uneven playing field for competition. Market data for 2025 clearly shows that Poland is beginning to lose ground to Germany in terms of electricity costs.

Average spot prices last year in Germany were 89 euros/MWh, while in Poland they were as much as 15 percent higher – 104 euros/MWh. This gap widened in January 2026: 110 euros/MWh in Germany compared to 143 euros/MWh in Poland.

Economic Divergence

The German economy has barely grown since 2019, and industrial production is still noticeably below pre-pandemic levels. In 2025, Germany’s GDP increased by only 0.2 percent, while Poland’s grew by 3.6 percent.

Only at the end of 2025 was an improvement seen, and this year the German economy has a chance to develop at a rate of about 1 percent.

German Energy Policy Failures

The problem of Germany’s structural slowdown is largely due to the botched energy transformation – it was subordinated to ideology, prematurely shutting down 20 GW of capacity in nuclear power plants, and making the country dependent on Russian natural gas.

Today, Germany is trying to cover up its mistakes with money.

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