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RENEWABLE ENERGY SECTOR IN POLAND

26.04.2017 14:37

[Секція 10. Світова економіка та міжнародні економічні відносини]

Автор: Oleh Ożarowski, master, PhD student in Krakow University of Economics


Poland’s energy policy to 2030 was adopted by the Polish government on 10 November 2009 and indicates support for the sustainable use of renewable energy. It contains a 15% renewable energy target for final energy consumption by 2020, which includes a 10% biofuels share in the transport sector. The details of these binding renewable energy targets are provided in Poland’s NREAP, which is part of its contribution to the EU 20/20/20 goals (Ministry of Economy, 2010).

Meeting Poland’s energy challenge will require comprehensive action, especially to ensure environmentally sustainable practices. The most likely renewable energy sources for the country are wind, hydropower, different types of biomass, geothermal energy and solar. The right mix of these options can help substitute a large share of Poland’s total fossil fuel demand.

The latest legislative changes in Poland implemented through the Renewable Energy Act introduce two new mechanisms to incentivise renewable energy investment in the power generation sector starting with 2016. The first is an auction system to replace green certificates and the second is the Feed-in-Tariff (FiT) applied to microgeneration (up to 10 kW). Poland’s previous renewable energy promotion system, based on green certificates, led to the development of centralised biomass co-firing. This increased biomass prices and delayed the expansion of other bioenergy technologies. These changes in the Renewable Energy Act will give the government almost entire control over the rate of the deployment of each technology and the volume of related investments. 

The government can now take into account the most recent economic and technological trends as well as externalities and indirect economic impacts associated with various renewable energy technologies. The auction system is weighted towards the most cost-effective projects and technologies. Thus the winning renewable energy projects should provide relatively cheap electricity. Economic incentives will allow the development of small-scale private renewables microgeneration in Poland. This might in future make an impact on the facilitated diffusion of distributed renewable energy systems. Microgeneration creates an opportunity for private investment in renewable energy and hence innovative small and medium-sized renewable energy enterprises. FiTs may be considered attractive, but the Act envisages a procedure for theirs potential change. Restrictions imposed in the Renewable Energy Act will also limit the impact of microgeneration. These exclude units greater than 10 kW, limit the eligible time span to 2016-2020 and confine the overall capacity of the programme to 800 MW.




Literature:

1. Lachman, P. (2014), ”Analiza rynku pomp ciepła,” (Analysis of heat pump market) Czysta Energia Vol. 11, pp. 1-8.

2. IRENA (2014b), Global Bioenergy Supply and Demand Projections, a Working Paper for REmap 2030, September 2014, IRENA, Abu Dhabi, United Arab Emirates.



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