Poland has many regions with favourable conditions for the occurrence of geothermal aquifers and their exploitation. Geothermal energy should be treated as one of the main renewable energy sources but there are several factors influencing the low official estimates for its potential use, which are outlined here. Space heating is one of the utilizations offering the best prospects for wide application, as it will lead to a considerable reduction in the consumption of traditional fuels and in toxic emissions. This paper presents the main aspects of current geothermal development in Poland, including the plants on-line, under construction and planned. Some of the experience gained from the operation of existing plants is described. Prospects for the development of geothermal energy in Poland will be discussed (e.g. the adaptation of abandoned wells; cascade, integrated and distributed systems; heat extraction not only from large depths but also from shallow water horizons and rock formations). Such solutions will result in a lowering of investment costs, thus increasing their effectiveness, extending the market and making geothermal energy competitive with traditional energy sources and other renewables. (C) 2003 CNR. Published by Elsevier Ltd. All rights reserved.