Level of Accumulated Depreciation of Energy Companies’ Assets

Abstract

The paper presents the degree of accumulated depreciation of fixed assets in Polish energy companies against the background of
global energy companies. The coal-fired energy units used in the Polish energy industry are outdated and require replacement. In
the course of the energy transformation, they will be replaced with energy from renewable sources, natural gas and nuclear fuel. The
transformation of the energy sector will allow the achievement of climate and environmental goals. Depreciation charged to expense
is an internal source of financing for processes of restoration of the production capacity. However, the Accounting Act and the Income
Tax Act provide for different methods of calculating depreciation, which means that not all depreciation is tax-deductible and that it
does not reduce the tax base. Reducing the discrepancies in legal solutions regarding the calculation of depreciation in companies may
stimulate the implementation of the processes of energy transformation.