1. RENEWABLE ENERGY MARKET the case of POLAND Danish Embassy, Warsaw 24 th Sept 2010 Michal Cwil, PIGEO selected issues

2. Agenda  General information  Targets and present statistics for RES  Potential  Rules and legal basis  Barriers  Energy prices and the certificates photo: from wikipedia 2

3. Short information about PIGEO 3

4. National and international cooperation PRK OZE Commercial Sections of Embassies in Poland 4

5. Our main activities 5

6. Energy sectors  Heat sector  Electricity sector  Transport sector (sea, land, air), 6

7. Renewable sources  wind (for electricity)  hydro(for electricity)  biomass(for electricity, heat or fuels)  biowaste(for electricity, heat or fuels)  biogas(for electricity, heat or fuels)  solar colectors(for heat)  solar PV(for electricity)  geothermal(for electricity or heat)  heat pumps(for heat) all RES-electricity can supply vehicules 7

8. Kind of energy primary energy source (e.g. biomass, wind) equipment to convert final energy (fuel, electricity, heat) photo: from wikipedia e.g.: PV panel wind turbine CHP engine The most important parameter of the equipment is: efficiency measured in % 8

9. Net value of energy use vs the gross GROSS final energy consumption = self consumption + transmission losses + NET final energy consumption 9

10. General units in Energy sector Power, installed capacity W, kW, MW, GW, TW 1000 W = 1kW 1000 MW = 1GW Energy = power x time = W x hour Wh, kWh, MWh, GWh, TWh 1000 Wh = 1kWh 1000 MWh = 1GWh 10

11. Energy units convenient for different sectors MWh (electricity), MJ (heat), ktoe (transport) 1 kWh = 1*1000*W*60*60*s = 3 600 000 Ws = 3 600 000 J = 3.6 MJ 1 MWh= 3 600 000 000 J = 3.6 GJ 1 GWh= 3 600 GJ 1 ktoe = 11.63 GWh 11 tonne of oil equivalent (toe); 1 ktoe = 1000 toe

12. 12 EU targets related to energy sector

13. RES target for Poland RES target for Poland vs other EU countries 31% 13% 16% 13% 30% 18% 25% 16% 18% 20% 23% 17% 13% 42 % 23% 11% 13% 10% 14% 34% 15% 25% 14% 38% 49% 15% 24% EU-27: 20% RES share in 2020 BE BG CZ DK DE EE IE EL ES FR IT CY LV LT LU HU MT NL AT PL PT RO SI SK FI SE UK 13

14. National target for renewable energy Poland's policy is adjusted to the EU strategy, which is based on the continuously growing share of energy generated from renewable energy sources (RES). The 2009/28/EC Directive provides that by 2020 the Member States jointly need to reach a 20% share of RES- generated energy in gross final energy consumption, and 10% of biofuels in transport fuels. In Poland, pursuant to the Directive, these levels have to be no less than 15% for RES and 10% for biofuels. 14

15. What does the target mean? biofuels electricityheat 15% the share of RES production on total gross final consumption in 2020 15

16. What we have now? What we have now? Primary energy share in Poland Data based on the Ministry of Economy. For 2010, the data might be quite the same lignite 12% coal 48% oil 23% gas 12% RES 5% Total use in 2007: ca. 100 000 ktoe 16

17. What we have now? What we have now? gross final energy consumption in 2007 Based on Eurostat Sector Gross final energy demand Total RES deployment RES share, by sectors ktoe% % Electricity sector13 191.120.5466.83.5 Heat sector36 424.956.54 096.511.2 Transport sector14 803.023.097.00.6 Total64 419.0100.04 660.37.2 17

18. What we have now in RES? share of RES on gross final consumption Data obtained basing on Eurostat statistics of December 2009 18

19. What we have now in RES? Electricity sector Breakdown by RES- electricity category (a)installed capacities (cumulative), (b)electricity production. No cofiring technology is included in Figure (a). Data on the basis of Eurostat statistics from December 2009. 19

20. What we have now in RES? Installed capacity of on-grid units – electricity sector (MW) 200520062007200820092010* biogas 3236.845.7 54.670.976.2 biomass 190238.8255.4 232252.5 wind 83.3152.6288 451.1724.7952.5 hydro 852.5934935 940.6945.2945.8 PV --- - 0.0010.012 co-firing biomass & coal --- - 38 units39 units Total 1157.61362.11523.8 1 678.31 993.22 227.1 *) data valid for 16 th of April 2010, URE 20

21. What we have now in RES? Electricity, green certificates issued in 2009 (MWh) data based on URE Green certificates issued for electricity generated in 2009: 8 297 GWh 47% co-firing biogas biomass wind hydro 21

22. What we have now in RES? Heat production (ktoe) data based on Eurostat 22

23. What we have now in RES? Biofuels production (ktoe) *) data based on Eurostat 23

24. Wh at we have now in RES? input of particular sectors, 2007 Share of RES on gross final energy consumption in 2007. The input of particular sectors (RES-E, RES-H and RES-T) in RES energy production. Book on RES, Claeys & Casteels Publishing, Data obtained basing on Eurostat statistics of December 2009. ca. 88% ca. 2% ca. 10% 24

25. Scenario for RES from policy 25 based on Polish Energy Policy up to 2030 Tab. Gross final RES energy demand according to the Polish Energy Policy 2030 (ktoe) and the share of RES in gross final energy demand (%).

26. NREAP – draft of the Action Plan 2nd governmental scenario Targets and trajectory for RES in Poland forecast by the government in 2020 26

27. How do we prospect the RES development ? visit www.repap2020.eu to get more about our proposals RES final energy demand (ktoe) scenario 18.7% RES share 27

28. Legal basis  Energy Law of 10th April 1997 with further amendments (Energy Law).  the Executory Regulation – Ordinance of the Minister of Economy of 14th August 2008 (amended by the Ordinance of the Minister of Economy, Journal of Laws from 2010, No. of 34 pos. 182)  the Executory Regulation – Ordinance of the Minister of Economy of 4th May 2007 on detailed conditions of operation of the electric power system  Law on Biocomponents and Liquid Biofuels of 25th August 2006. Others: The Law on Environmental Protection of 27th April 2001, The Law on Environmental Protection of 27th April 2004, The Law on Agricultural and Forest Land Protection of 3rd February 1995, The Law on Waste of 27th April 2001, The Geodesic and Cartography Law of 17th May 1989, The Law on Real Estate Management of 21st August 1997, The Code of Administrative Proceedings of 14th June 1960, The Code of Civil Proceedings of 17th November 1964, The Law on Fire Security of 24th August 1991, The Public Procurement Law of 29th January 2004, The Ordinance of the Minister of Infrastructure of 12th April 2002 on the technical requirements to be fulfilled by buildings and their location (Journal of Laws No. 75, item 690). 28

29. How to realize the RES project?  Plot acquisition  Environmental decision  Localization decision  Access to the grid  Construction permit  Concession / registration 29

30. Localize the RES  Local spatial development plan (so called MPZP)  decision on conditions of construction and land development (so called WZ)  public utility project 30

31. Access to the grid apply for conditions  document confirming the legal right to real property,  the spatial development plan or the situational plan,  a study of impact on the electrical system (if applicable),  advance payment against the grid connection fee 30PLN/kW,  submitting the extract and map extract from the local zoning plan or a decision about the conditions for development (acquisition of conditions for construction) of the real property on which the RES unit is to be constructed. 31

32. Concession / registry  Concession from the Energy Regulatory Office for all RES electricity generating units excluding agricultural biogas  Registration by the Agricultural Market Agency for agricultural biogas production or production of electricity from agricultural biogas. 32

33. Some definitions renewable energy – it is electricity or heat generated especially: in hydro power plants and wind power plants, from sources generating energy from biomass and biogas, from photovoltaic cells and solar collectors, from geothermal sources, and part of energy retrieved from thermal processing of communal waste (a relevant regulation will be adopted soon). 33

34. Some definitions biomasss – all biodegradable substances of plant and animal origin (...). agricultural biomass – a biomass originating from energy crops, waste and remains from agricultural production and industries processing from agricultural products, as well as residues of other waste which are subject to decomposition. biogas – gas derived from biomass. All kind of biogases are renewable energy source (RES); agricultural biogas – gas fuel obtained from agriculture raw materials, agriculture by-products, liquid or solid animal excrements, by products or residues obtained from agriculture and food industry or forest biomass in the anaerobic fermentation process. 34

35. Some definitions gaseous fuels – various gases not being RES, which are supplied by the gas network, and agricultural biogas cogeneration – combined heat and power (CHP) cogeneration unit – a separate set of devices that can generate electricity in a cogeneration useful heat (E CHP th ) – heat produced in a cogeneration process to satisfy an economically justifiable demand for heat or cooling 35

36. electricity from cogeneration – electricity generated in a process linked to the production of useful heat:  E CHP el = total electricity production with an annual overall efficiency at a level of at least 75 %  E CHP el = C * E CHP th when the level of 75% is not reached high-efficiency cogeneration - primary energy savings (PES) obtained by combined production instead of separate production of heat and electricity of:  PES ≥ 10% for cogeneration unit with P el ≥ 1 MW  PES > 0% for cogeneration unit with P el < 1 MW C – is related with power to heat ratio Some definitions 36

37. Types of certificates in the Polish support mechanism RESCHP all kind of biogas (electricity physically generated) agricultural biogas pumped into gas network (equivalent) non gaseous sources agricultural biogas (no limit for P el ) and all kind of biogas and fuels (P el < 1 MW) and all gaseous fuels all kind of biogas (no limit for P el ); also methan from coal 37

38. Types of certificates RESCHP 38

39. Link the certificates RESCHP 39

40. Link the certificates RESCHP or: 40

41. Link the certificates RESCHP or producer recipient * * *) 1 m 3 biomethan  1 MWh el equivalent 41

42. Types of certificates what is eligible For total electricity generated from biogas including:  self-consumption  electricity generated in a separate production (E el ) 42

43. Types of certificates what is eligible Each MWh of electricity equivalent* which results from the amount of biomethane pumped to pipeline (the same rules as green one). *) Relevant regulation will define the algorithm for converting biomethane (m 3 ) into equivalent amount of electricity (MWh). 43

44. Types of certificates what is eligible For each MWh of electricity from cogeneration E CHP el E CHP el = E el (only if an annual overall efficiency reaches the minimum level) or 44

45. Types of certificates meet conditions to get  license – concession by URE (or ARR registry if agricultural biogas)  generating unit should be connected to the grid  electricity is generated in high-efficiency cogeneration (this is applied only to yellow, red or violet ones) 45

46. The procedure to receive the certificates The certificates of origin are issued by the President of the Energy Regulatory Office, on the request of a producer of energy in RES, submitted via the grid operator of whose area of activity the RES unit is connected. 46

47. Types of certificates who is obliged to buy The obligation is imposed on entities which sell electricity to end customers. The obligation is fulfilled when an entity buy each year a specific number of certificates or alternatively pay a substitute fee. The number of the certificates of origin reflects the share of electricity supplied and sold by this energy company to end-users in a given year. According to the Ordinance of the Minister of Economy of 14th August 2008 par. 3, This share amounts to (green one): 10.4% for 2010 10.4% for 2011 10.4% for 2012 10.9% for 2013 11.4% for 2014 11.9% for 2015 12.4% for 2016 12.9% for 2017. 47

48. Foresee the income RES unit generating electricity, not in CHP 48

49. More about the market more about the mechanisms and the market: participate at the Green Power Congress, www.kongresgreenpower.pl 49

50. Polska Izba Gospodarcza Energii Odnawialnej ul. Gotarda 9, 02-683 Warszawa Tel. +48 22 548 49 99, Fax +48 22 548 49 00 pigeo@pigeo.plwww.pigeo.org.pl Michał Ćwil, michal.cwil@pgbiogaz.pl Dziękuję za uwagę ! / Thank you for attention ! Dołącz do nas ! Join us ! 50