Directive 2009/28/EC of The European Parlilament and The Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC 1.The Energy Law Act of 10 April 1997 (Journal of Laws 2012 No. 1059, as amended); the „prosumer’s amendment” of July 2013 2.The Regulation (decree) of the Minister of Economy of 4 May 2007 on detailed conditions for electricity system functioning (Journal of Laws No. 93, item 623, as amended) 3.The Renewable Energy Act of 20 February 2015 (Journal of Laws item 478) (adopted by the Parliament on 20 February 2015 and signed by the President on 11 March 2015)

1. Grzegorz Wiśniewski
gwisniewski@ieo.pl
Institute for Renewable Energy
Warsaw, Poland
www.ieo.pl
Polish renewable energy
investment landscape ´2015
- the on-going and new legal framework
REFIP Forum 4.0
„Renewable Energy Finance in Practise”
7-8 May, 2015, Vienna

2. The growth rate of installed capacity in the
Polish Power System in years1960-2013
(source: PSE Operator)
www.ieo.pl
Hard coal public power stations
Autoproducer power stations
Public thermal power plants
Lignite public power stations
Public hydro plants
Country total
Gas public power stations
Wind and other RES
[Years]

3.  Directive 2009/28/EC of The European Parlilament and The Council of 23 April
2009 on the promotion of the use of energy from renewable sources and
amending and subsequently repealing Directives 2001/77/EC and
2003/30/EC
1. The Energy Law Act of 10 April 1997 (Journal of Laws 2012 No. 1059, as
amended); the „prosumer’s amendment” of July 2013
2. The Regulation (decree) of the Minister of Economy of 4 May 2007 on
detailed conditions for electricity system functioning (Journal of Laws No. 93,
item 623, as amended)
3. The Renewable Energy Act of 20 February 2015 (Journal of Laws item 478)
(adopted by the Parliament on 20 February 2015 and signed by the President on 11
March 2015)

4. www.ieo.pl
The current support system for RES generation in
Poland – the general rule
 Obliged entities – traders supplying electricity to end-users
 Green certificates (certificates of origin) issued by Energy Regulatory Authority (URE)
for concessioner RES owners
 The trading system for green certificates managed by Polish Power Exchange (TGE).
∑≈ € 95/MWh

5. The quota obligation for trading Utilities and
fulfillment of the obligation
Note – RES-E generation including unsolved cases of TGC issuing, mostly concerning biomass;
according to up-to-date experience these TGC are finally issued and affecting the market

6. RES-E installed capacity in Poland, status
31/03/2015 (MW)

7. www.ieo.pl
RES-E generation in Poland
~30% of RES electricity from biomass co-firing; until 2011 it was 50%
 The oversupply of green certificates

8. TGC volumes sold on Polish Power Exchange
and in off-session contracts
 Off-session trade is dominating – 80% of the market (2014)
 Approx. 15 TWh banked TGC’s (including unsolved cases)
 The mechanisms introduced by new RES Act (in force Jan.
2016) are outdated and not reflecting the current situation
on the market (oversupply of TGC)

9. www.ieo.pl
The monthly average TGC prices on sessions
and in off-session transactions, 2011-2015
Currently TGC index (OZEX_A)
stabilized on the level 122 PL/MWh
(€ 30/MWh)
≈ € 30/MWh

10. The average electricity prices and substitute fees
in Poland source:
source: TGE, URE, IEO
www.ieo.pl
Growing
cost
∑ electricity price+ fee = income for RES-E producer

11. www.ieo.pl

12. Electricity prices:
Comparison of energy markets in Poland
and Germany (EEX)
January 2014
Own study based on TGE, EEX, Agora Energiewende

13. Lipiec 2014
Opracowanie własne na podstawie TGE, EEX, Agora Energiewende
Electricity prices
Comparison of energy markets in Poland
and Germany (EEX)
Own study based on TGE, EEX, Agora Energiewende

14. The impact of RES support system and energy mix
on RES-E costs and the
Germany (FiT, high RES share) and Poland (TGC, low RES share)
Sources: TGE, EEX (Phelix)
January 2014 July 2014

15. New RES Act = new support schemes
in force since 1 January 2016, up 2020
Different support schemes Comment: just on time, too late or too early?
too late OK too early
Biomass
co-firing ×
large scale (retrofit) ×
large scale (greenfield) ×
Biogas landfill ×
sewage plants ×
agricultural ×
Wind onshore ×
offshore ×
small scale ×
Hydro paid off
new large scale ×
new small scale ×
PV large scale PV ×
small scale PV ×
The assessment of support scheme
selection on current stage of RES
market development
Support in RES Act
Type of
RES
RES technology
Auctioning system
(baskets <1 MW and >1
MW)
Net metering 0-40 kW
Large scale RES
Prosumers installations
should never be supported
PV home PV ×
Wind microturbines ×
micro biogas plants ×
Bioliquids CHP ×
FiT 0-10 kW
Net metering 0-40 kW
Biomass
PV home PV ×
Wind microturbines ×
Biomass micro biogas plants ×
FiT 0-10 kW

16. General rules of RES support in different for
different scales of RES according to RES Act:
administrative and connection requirements
Administrative
and DSO
requirements
Micro RES Small scale RES Large scale RES
10
kW
40
kW
50
kW
75
kW
100 kW 200
kW
500
kW
1
MW
5
MW
10
MW
20
MW
50
MW
Administrative
requirements
• Written information
to DSO with
installation
description
• Not threaten as
enterprise activity
• Concession not
requested
• Registrationas small scale RES
energy supplier requested
• Treaten as enterprize
• Concession not requested
Concession requested
Grid connection Lack of connection fee 50% connection fee Full connection fee
 FiT up to 10 kW
 Net metering up to 40 kW
FiT after auction –
basket up to 1 MW
FiT after auctions-
basket over 1 MW

17. Expected volumes in MW of auctions predicted
in 2015-2020
≈ 4,2 GW
Technology
New capacity originally planet for auctions 2015 -2020 [MW]
2015 2016 2017 2018 2019 2020
Wind 500 500 500 500 500 500
Biomas 70 70 70 70 70 70
Hydro 0 0 0 0 0 80
Up to 1 MW (25% of total) 74,5 100,5 112,5 124,5 135,5 147,5
Wind 50 70 75 80 85 90
Biomas 21 27 34 41 47 54
PV ? ? ? ? ? ?
Hydro 3,5 3,5 3,5 3,5 3,5 3,5
TOTAL 644,5 670,5 682,5 694,5 705,5 797,5
Indicative/cumulated /updated
dates of auctions
1st auction

18. The forecast of LCOE for PV, biogas and wind energy vs. to
the wholesale electricity price (current value):
Source: IEO study for Ministry of Economy, 2013, RES Act impact assessment ,2014
No official reference prices yet

19. www.ieo.pl
Simulation of „merit order” for RES-E technologies >1MW in
auctioning system (LCOE, PLN/MWh),, source IEO

20. Investment risk
Auctioning mechanism, bids are falling into a
common basket for all the technologies.
PRICEOFFER
SPECIFIC OFFERS IN AUCTION
REFERENCE PRICE
REFERENCE PRICE
REFERENCE PRICE

21. Investment risk
Merit order of the auction, assumption of equal
treatment of bidders

22. Investment risk
Merit order of the auction, limitation of the volume
for technologies generating <4000 MWh/MW

23. Feed in Tariffs (FiT) for micro
installations according to the RES Act
Feed-in-Tarrifs FiT (wholesale sale of electricity, from renewable seller to retail utility)
a „cap” on the clearing sale system from micro installation (the option to choose),
available for everyone at specified time (2020) and specified power range (800MW).
FiT RES type RES technology Electricity rate
zł/kW
0-3 kW
Sun PV installations 0,75
Wind Micro Wind Turbines 0,75
Water Water plants 0,75
>3 – 10 kW
Sun PV installations 0,65
Wind Micro Wind Turbines 0,65
Water Water plants 0,65
Biogas
Agricultural micro-biogas plants 0,70
Landfill micro-biogas plants 0,55
Sewage micro-biogas plants 0,4
1zł=0,25 €

24. Feed-in-Tariffs(FiT) for micro
installations according to RES Act
-an implementation plan?
www.ieo.pl
Feed-in-Tariffs – over 200.000 installation until 2020:
• 145.000 micro installations up to 3 kW (together 300 MW)
• ≈60.000 micro installations between 3-10 kW (together 500 MW)
10 000
45 000
90 000
<3 kW
2 500
12 500
34 375
5 000
2 500
2 500
3-10 kW water
wind
PV
agriculturalbiogas
landfill biogas
sewage biogas
200.000 families and small enterprises – RES micro installation users – would not change
the polish energy mix, however it could have changed the energy scenario

25. www.ieo.pl
Possible pay-back
by classical net-
metering for
bigger sources
Lack of price
defined in RES Act
(subject of
contract
negotiation)
„Net metering” up to 40 kW
– economic effect for companies

26. www.ieo.pl
„Net metering”- an economic effect
for individuals
Possible pay-back by
„gross” net-metering
for bigger sources
The solution for
idividuals in RES Act –
„net” net-metering
Doesn't pay back by sale of not used
electricity

27. EU (subsidy) funds 2014-2020
for RES and related topics in Poland
Investment area –
priority
All funds
mln €*
Central (POIS)
mln €*
Regional (16 RPOs)
mln €*
RES only 1.200 900 300
RES & EE investment
in industrial companies
400 250 150
EE in buildings 2.000 1.500 500
Intelligent grids 100 100
Low carbon (city)
transport
5.000 2.200 2.800
CHP (including RES) 400 100 300
TOTAL 9.100 4.950 4.150
www.ieo.pl
1. Poland – EU partnership agreement-priority:„Transition to low carbon economy”
*rounded values
2. Other EU and Polish funds for RES:
a) Rural Ares Development Programmed (PROW 2014-2020), for farmers and rural municipalities
b) Polish Environmental funds (NFOSiGW and 16 of WFOSiGW)
EU public aid rule/RES Act : If FiT (auctions) – no investment subsidy

28. Conclusions
• Poland is moving from the TGC (2006-2015) system to auctioning
system (2016-2020)
• Exemptions from auctions:
– Traditional biomass co-firing (app. 20 plants remain within TGC to at least
2020)
– Small scale RES (prosumer type investment) microinstallations: FiT - up to
10 kW; net metering – up to 40 kW
• The expected winners of auctioning system
– > 1 MW: biomass power (retrofits) and on-shore wind with dominant
position of Polish utilities (BIG 4)
– < 1 MW: competition: biogas & biomass CHP, PV and on-shore wind (?)
• Major risks:
– Unclear, not yet tested auctioning system, lack of enforcing regulations (reference
prices etc.)
– Unclear rules for grid access for PV and wind (capacity factors <4000 h/year)
• Opportunities for independent investors and power procures (IPP)
– auctions up to 1 MW (25% of the total volume, excepted high prices)
– microprosumers (FiT)
– off grid/self consumptions (SMEs, farmers, municipalities) with investment support
from EU and Polish environmental funds) www.ieo.pl