The competitiveness of natural gas as a raw material for electricity generation

Additionally the volume of domestic natural gas reserves with the division into land deposits and ones localised in the Polish economic zone of the Baltic Sea was taken into consideration. The article characterises the conditions of natural gas market development in Poland (the relation between production, consumption and import; current import directions and the plans of gas supplies diversification, as well as unitary natural gas consumption in Poland against the background. of the other EU countries). A domestic sector of electricity generation was also characterised (production structure, electricity generation and consumption). Subsequently (with appropriate assumptions) the analysis of electricity generation costs from lignite, coal and natural gas was carried out. The results indicate that at the present the costs of electricity generation from lignite are the lowest in the country, and they are higher for coal and natural gas. In the conclusion the chances of gas power industry development were indicated.