Revised renewable energy act will help Poland meet its renewable energy target

GlobalData Energy 23 December 2019 (Last Updated January 10th, 2020 14:31)

The country is looking to reduce its dependence on coal as it has become a source of concern for its adverse environmental impact.

Revised renewable energy act will help Poland meet its renewable energy target

Installed non-hydro renewable capacity in Poland is expected to reach 25.3 GW by 2030 from 8 GW in 2018 at a CAGR of 11.03%, according to a recent report by GlobalData.

The report, entitled ‘Poland Power Market Outlook to 2030, Update 2019 – Market Trends, Regulations, and Competitive Landscape’, reveals that non-hydro renewable power is expected to show the highest growth rate in 2019-2030, registering a compound annual growth rate (CAGR) of 11.03%, the wind being the highest contributor in the renewable energy mix followed by solar PV and biopower.

 

In 2000, thermal power was used as the primary source with a share of 93% in the power mix followed by the hydro and renewable. However, the trend started changing and the share of thermal came down to 78% whereas renewables increased to 16.9% in 2018. The country is looking to reduce its dependence on coal as it has become a source of concern for its adverse environmental impact. The thermal power generating plants have passed on the burden of the heavy cost of production to the consumers, for buying pollution rights under the EU’s emissions trading scheme. Besides, the increase in imports of cheaper and cleaner power from the neighbouring countries is piling more pressure on the high-cost coal-fired plants. Thus, in July 2019, Poland’s parliament adopted measures to compensate its industry struggling to cope with surging electricity bills triggered by higher EU carbon emission costs. 

The country has set a target of meeting 15% of energy from renewables in gross final energy consumption by 2020. Recently the country has revised its renewable energy sources act mostly focusing on the way forward to meet the renewable energy target. This amendment will focus on aspects such as dragging SMEs into the energy transition, more opportunities for investors and PV Park Managers. This revised act already cleared the bottlenecks of onshore wind auction of 2.5 GW and is expected to be held by the end of 2019. The government of the country also sees both onshore and offshore wind of high importance to meet the goals. Thus the revised renewable energy act also extended deadlines for interconnection agreements and set rules for the Guarantees of Origin (GOs) scheme. These will ensure stable wind farm revenues to the corporates, who need assurances for sourcing clean electricity. 

The Energy Minister of Poland also focused on the use of nuclear energy for the country to attain a stable supply of electricity. The Polish government expects to build 6 GW to 9 GW of nuclear power capacity by 2043 and to have the country’s first offshore wind farm by 2025.

The country presents significant opportunities for renewable energy sources such as wind, solar power, and biopower, as it holds large potential for development. Even for the thermal power plants, more than 50% of the plants are older than 25 years. Hence, there is a great opportunity for replacement of these plants with new and more efficient power stations which will also add up for the reduction of the carbon emissions.