2. EC BREC 1 The Regional REEEP Meeting, 3-4 July, Szentendre 2003 Status of policies and financial mechanisms to promote RES in Poland Magdalena Zowsik EC Baltic Renewable Energy Centre (EC BREC/IBMER)

3. EC BREC 2 GENERAL INFO Poland - country in Central Europe 312.680 km 2 area; 38,7 mln people Forests - 28,1 % Poland, i.e. 8.8 mln ha. Agricultural lands – ca. 60% of the Poland. 38% of the population live in the rural areas. Agriculture and forestry give 4.8% of GDP but 27% of the employed in Poland work in agriculture (0.4% in forestry). Rural areas have a very high unemployment rate 18%, reaching even 50% in some places.

4. EC BREC 3 ENERGY SECTOR & RES The energy sector is dominated by the hard coal Electricity is produced in 98% from fossile fuels 68% of heat demand in urban areas is met by district heating networks. The share of the other energy sources inc. renewables is growing slowly, in 2001 it was ca. 2,9% of total primary energy consumption (in that 98 % biomass) Total primary energy consumption is slowly decreasing (in 2000 it was 3812,4 PJ).

5. RES-Policy making and strategic documents

6. EC BREC 5 ENVIRONMENTAL POLICY 1.„ National Development Plan” 2.„Kyoto Protocol”  Kyoto Protocol ratified in 2002: 6% emission reduction within 2008-2012 comparing to 1988,  c.75 mln tonnes of CO2 surplus to be traded annually 3.„Second Environmental Policy” 4.„ Polish Development Strategy Of Renewable Energy Sector”

7. EC BREC 6 (1) POLISH DEVELOPMENT STRATEGY OF RENEWABLE ENERGY SECTOR Poland has adopted already the national renewable energy strategy (by the Polish Parliament in 2001) and is harmonising its environmental and energy policy with those of EU

8. EC BREC 7 Strategic targets: 7,5% in 2010 14% in 2020 increase of the total energy production from RES by 235 PJ (up to 340 PJ) (2) POLISH DEVELOPMENT STRATEGY OF RENEWABLE ENERGY SECTOR

9. EC BREC 8 ENERGY POLICY  „Assumptions of the Poland’s Energy Policy to 2020”, 2000  „Energy Act”, 1997 (amendments 2000, 2002)  „Thermodernisation Act”  „Quota obligation ordinance”

10. EC BREC 9 ENERGY POLICY-ORDINANCES „ Quota obligation ordinance”, 2000  Electricity suppliers are obliged to buy from national producers offered amount of electricity and heat from renewable energy sources (2.4% in 2001, 7.5% in 2010)  Problems: - lack of tariffs - lack of fines for not fulfiling the obligation

11. EC BREC 10 ENERGY POLICY- A NEW ORDINANCE „ Quota obligation ordinance”, 2003  The obligation of buying RES energy moved to the Energy Act  Definition of biomass and biogas  Permited co-firing of biofules with fossil fuels

12. EC BREC 11 AGRICULTURAL POLICY A draft „Act on Biofules Market” „Act on agricultural tax” –25% reduction of agricultural tax in case of RES investment (valid during 15 years after construction of installation)

13. EC BREC 12 FINANCIAL POLICY „ Financial Support for the Investments Act”, 2002 „The Ordinance of the Council of Ministers of the Public Aid for Environmenal Protection”, 2002 „Excise Ordinance”, 2002

14. EC BREC 13 FINANCIAL POLICY (2) For investment:  Green funds (subsidies & loans)  Structural funds (after EU accesion)  Central budget- Act on Financial Support to Investors  Central budget, local governments’s budget- National Development Plan For production of RES electricity: Exemption of excise tax on electricity 0.02 PLN/kWh (0.056 Euro) c. 10% of electricity price (Excise Ordinance) To support production: Exemption of excise tax on fuels – around 45% of the fuel price for bioethanol (Excise Ordinance-each year)

15. EC BREC 14 FINANCIAL SUPPORT

16. EC BREC 15 POLICY PRIORITIES & RES Legal regulations in RES sector- introduction of RES Act RES Acts should regulate:  Polish law transposition according to the Directive 2001/77/EC: - RES definition, - creation of market mechanisms supporting the RES e.g. Green certificate market, - system of Green energy labelling  Statistics on RES  Data collection on the existing RES installations  Creation of dedicated RES fund Educational and promotional actions and international co-operation

17. EC BREC 16 CONTACT Further information available from EC BREC office in Warsaw –Rakowiecka 32, 02-532 Warsaw –tel/fax (+48 22) 848 48 32, 646 68 50, 646 68 54, –e-mail: ecbrec@ibmer.waw.pl –Internet: http://www.ibmer.waw.pl/ecbrec