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• |Poland
• |Energy Sources

Electricity

Poland has an installed electricity capacity of 33 GW in 2009, with more than 90% in coal power plants which provide 92% of the electricity production.

Installed electric capacity by source (2009, %):

• Coal 87 %
• Hydropower 7 %
• Oil 3%
• Gas %
• Wind, geothermal 1 %
• Biomass 0.2 %

[Enderdata]

Structure of power sector

Poland has an import capacity of 3,100 MW, whereas its export capacity amounts to 3,700 MW. In 2009, exports have amounted to 9.6 TWh, with more than 72 % of the exports are directed toward the Czech Republic, and around 24 %. Imports amounted to 7.4 TWh in 2009, of which more than 75 % came from Germany and 19 % from Sweden.

As mentioned, electricity generation in Poland is mainly based on coal as most of the capacity is installed in coal fired power plants.  The installed capacity in hydro power plants is mainly utilised via pump storage plants. Hard coal fired power plants include also the combined heat and power (CHP) plants, which apart from electricity heat for municipal as well as industrial needs.

Generation capacity construction in Poland has been inconsistent over the past 40 years, resulting in an aging system that is becoming an increasingly serious problem. From 2008 to 2015, investments of 3758 MW new power blocks are planned, and 6324 MW will be modernized. Currently, 80% of energy boilers, turbines and generators installed in Polish power plants are above 20 years. In order to meet the strict EU environmental requirements (Poland committed to limit CO2 emissions by 20% and set 20% share of renewable sources in Poland’s energy production balance in 2020) the modernization of existing installations is necessary. It will also be important that investments are undertaken in the area of improving energy efficiency in the Polish power generation and transmitting sectors.

Current Polish power plants energy efficiency is calculated at 36%, with energy loss by power plants estimated at 24 TWh annually. The Polish power transmission and distribution system generates energy losses of 9.36%, which is one of the highest in Europe. Existing power generation and network losses constitute of 25% of total energy production.

[Enderdata]

Nuclear Power Plants

Poland currently does not operate nuclear power plants. However, according to Poland’s energy policy, by 2030 the Polish government plans to introduce nuclear energy into Poland. The program envisages construction of two nuclear power plants of 3000 MW each, with the first plant to be commissioned in 2020.

The National Program for Nuclear Energy Development started consultation already in 2010, with plans for approvel by the Polish Parliament by the end of 2010 early 2011. The Polish Energy Group PGE has been assigned the task of organizing a consortium to build and operate the first power plant.

This is the PGE’s current Roadmap for the First Nuclear Power Plant Construction Project in Poland.

Schedule: Construction of the first NPP to be executed in four stages:

• Stage 1 until 31 December 2010 (final date for adopting the Nuclear Power Programe for Poland by the Council of Ministers)

• Stage 2 from 1 January 2011 until 31 December 2013 (final site selection and conclusion of the contract for the construction of the first NPP)

• Stage 3 from 1 January 2014 until 31 December 2015 (technical design and obtaining all required decisions and permits)

• Stage 4 from 1 January 2016 until 31 December 2020 (construction of the first unit in the first NPP)

[PGE]

Table: Electricity production balance in 2009

Electricity grid

PSE-Operator manages a transmission network of more than 13,400 km (220 kV to 750 kV). Poland also maintains very strong links with distribution systems in the Ukraine and Belarus. These links provide Poland with a grid capacity with Western Europe and these former Soviet Union states on the order of 3,000 MWe per system.

[PSE]

Oil and Natural Gas

Oil

In 2009, Poland has a low production of oil around 1.3 Mt, and imports 95 % of its needs. Approximately half of Poland's oil imports comes from the Russian Federation, while the United Kingdom, Iran, and Norway also supply significant amounts of oil. It has a refining capacity of 493,000 bbl/day, split into two large refineries at Plock (373 000 bbl/day) which produces 60 % of the gasoline of the country and Gdansk (120,000 bbl/day).

Poland produces 90% of its requirements in oil products.

[Enderdata]

Gas

The production of natural gas (4.5 bcm in 2009) covers approximately one third of the gas needs. Supplies come primarily from Russia, to a lesser extent from CIS countries and for a very low share from Germany.

In late 2009, Gazprom, PGNiG and EuRoPol GAZ signed a long-term Agreement of Cooperation for the gas sector (Gazprom and PGNiG are the key shareholders of EuRoPol GAZ). The document stipulates extending the contract for natural gas supply from the Russian Federation to Poland until 2037 as well as potentially increasing natural gas supplies to Poland starting 2010 up to 11 bcm/year depending on the Polish market demand. In addition, the Agreement contemplates extending the contract for natural gas transmission to Western Europe via the Polish section of the Yamal – Europe gas pipeline until 2045.

[Enerdata, Gazprom]

Coal and lignite

Coal has a dominant role in Polands energy supply. The production of coal and lignite has however been falling slowly over the last decade (163 Mt in the year 2000 compared to 135 Mt in the year 2009). This results from instrastructural changes and a systematic decrease in hard coal extraction. The production is distributed between 60 % bituminous coal and 40 % lignite. The coal production is to approximately 50 % intended for electricity production and another 22 % for exports (14 Mt), which makes Poland the world’s tenth largest coal exporter.

[Enerdata]

Heat

District heating is an important sector within the Polish economy especially in the power sector. Centralised heating systems cover in average 72 % of the heat demand in cities. Approximately 12 million Polish citizens are supplied with heat from centralised systems feed in by industrial, professional and municipal CHP units. Only about 27 % of the heat demand is being covered by individual heating systems.

[Euroheat and Power]

Renewable energy

The share of energy produced from renewable sources in the total primary energy production is gradually rising. In 2001 it amounted to only 5.1%. Since 2005 the pace with which this share is increasing has been rising. In 2006, 210 555 TJ was produced from RES, which accounted for 6.5% of the total primary energy produced. In 2007 this number rose to 215 374 TJ (7.1%), and recent confirmed data for 2008 show that 228 277 TJ was produced from RES, which gives 7.7% of the total energy produced.

Solid biomass had the highest share in renewable energy production in 2008. It amounted to nearly 87% of the total domestic production of energy from renewable sources. Liquid biofuels were the next largest carrier in primary energy production from renewable sources (5.4%), followed by water (3.4%), biogas (2.4%) and wind (1.3%). Heat pumps, geothermal energy, solar radiation and energy from municipal waste were less significant in the total balance.

The share of respective energy sources in the total production of energy from renewable sources is dynamically changing, as some develop more quickly than the remaining ones. This holds true mainly for biofuels (2.2% in 2007 and 5.4% in 2008). The increased share of this carrier results, however, from the fact that a substantial part of biofuels was imported in order to satisfy the demand on the Polish market created by legal regulations. Biogas also increased its share (1.3% in 2007 compared with 2.4% in 2008). Utilization of wind energy rose as well (from 0.9% in 2007 to 1.3% in 2008).

[4Biomass, Central Statistical Office (2009)]

Hydropower

Current Status of Hydroelectric Energy

Although hydro power has a long tradition in Poland, Polish hydro power resource is small due to the limited and unfavorably distributed precipitation, high soil permeability and relative flatness of the country. In 2008, one third of the electricity generated from RES was generated in hydro power plants. The share of hydro energy in the total electricity generation from RES has been diminshing in recent years. This results from the development of the remaining RES, especially biomass and wind energy. In 2008, the share of Hydroenergy in electricity produced from RES amounted to 33,4%.

[4Biomass, Central Statistical Office (2009)]

Hydroelectric Energy Resource Potential

The possibilities of hydropower production in Poland are not evenly distributed in Poland. Most of it (about 68%) is present in the River Vistula basin.  The rivers with high energetic potential are: Wisla (Vistula), Dunajec, San, Bug, and also Odra (Oder), Bóbr, and Warta. The highest concentration of existing medium size and large hydropower stations is in the western and southern parts of the country. The lowest in central Poland, and in the eastern part they are practically absent.

Bioenergy

In 2008, nearly half of the electricity generated from RES was produced in power plants utilising biomass. During recent years, out of all the RES the share of solid biomass has been increasing the most dynamically. In 2001, 160 406 TJ was produced from biomass in Poland. Until 2008, this number increased by 23.7%, reaching 198 000 TJ. Utilisation of biogas is also increasing. It comes mainly from sewage, but municipal waste is a growing source of biogas. When compared with 2006, utilisation of biogas increased twofold in 2008.

According to the data of the Energy Regulatory Office for the end of 2009, energy from biogas and biomass was produced in 178 installations, including: 125 biogas power plants with the total capacity of 77 MG and 15 biomass power plants with the total capacity of 252 MG. The remaining 38 installations carry out co-combustion (it is not possible to specify their capacity).

The amount of electricity generated from biomass between 2006 and 2008 increased nearly twofold – from 1818 GWh to 3267 GWh. A large part of it was generated in co-combustion processes (84% in 2008). Also the amount of electricity produced from biogas increased almost twice during the three analysed years, from 117 GWh in 2006 to 221 GWh in 2008. Over half of this was generated from landfill biogas (63% in 2008), one third from biogas produced in sewage treatment facilities and the remaining small part was generated in the agricultural sector (4% in 2008).

RES use for heat energy production

Production of heat from RES has been systematically increasing since 2001. In that year 1 935 TJ were produced from RES, while in 2008 as much as 8 000 TJ. Heat generation from RES is based mainly on solid biomass. Its combustion accounted for 73% of the total heat production from RES in 2008. Another large source is biogas – with a 12% share.

[4Biomass]

Wind energy

In 2008, the share of wind energy in electricity produced from RES amounted to 13 %.

In 2009, the Polish wind market continued its growth by adding 181 MW of new capacity, taking total installations up to 724,6 MW. 864 GWh of wind power were produced in 2009. In 2009, this translates in the share of wind generation in domestic consumption of electric energy as follows: 0,58 % (864,5 GWh/148 TWh).

New wind farms installed in 2009 include a number of large scale developments in the region of Zachodniopomorskie (Western Pomerania) in northwest Poland, such as a 32 MW wind farm in Śniatovo (using 2 MW Vestas turbines), a 69 MW wind farm in Karścino (using 1.5MW Fuhrländer turbines) and a 50 MW wind farm in Tychowo (using 2MW Nordex turbines). Other large wind farms became operational in Podlaskie in the north east of Poland (a 41.4 MW wind farm in Suwałki, using 2.3 MW Siemens turbines) and in Wielkopolskie (a 20 MW wind farm in Margonin, using Gamesa 2 MW turbines).

22 wind farms currently operate in Poland, and there are also single turbines or clusters of small turbines spread across the country.

Prospects for wind energy development in Poland

Based on the number of applications received by the Polish Energy Regulatory Office for issuing licenses for wind farms, a big increase in wind generating capacity is expected in the near future.

In the period up to 2013, support schemes currently available to investors, including EU cohesion funds (Operational Programme Infrastructure and Environment) and structural funds (Regional Operational Programmes) will help drive wind power growth. However, the most rapid increase is predicted between 2014-2020, when even more significant financing will become available from the EU funds, in particular from structural funds.

While onshore wind is expected to grow at a healthy rate, no offshore developments are foreseen until 2018, when about 500 MW will be developed. By 2020, offshore wind capacity could reach 1,500 MW.

The Polish Wind Energy Association predicts very dynamic growth of installed capacity in the wind power sector, amounting to about 13 GW in 20203). The figure comprises almost 11 GW of onshore wind farms, 1.5 GW in offshore wind and 600 MW of small wind.

[GWEC]

Solar energy

Current Status of Solar Energy

On average, solar energy on Polish territory amounts to 930 - 1160 kWh/m2.a, depending on the region (from 950 kWh/m2.a in the Upper Silesia District (Górnośląskie), to 1250 kWh/m2.a on the Baltic coast).

Annual sunshine on Polish territory averages about 1,600 hours, while its timing is very uneven - approximately 80% of the total annual amount of solar radiation occurs in the spring and summer (April-September). The time of operation in the summer sun is extended to 16 h / day, while in winter is reduced to 8 h / day.

In reference to the Polish climatic conditions, solar energy is most practically used to heat water (low heat temperature), mainly by means of flat plate solar collectors. Liquid collectors are used to heat water for homes, cabins, cottages, sports facilities, etc.

[Instytut Energetyki]

Forecast use of RES in heating and cooling until 2020 (ktoe)

[Ministry of Economy]

Geothermal Energy

Current Status of Geothermal Energy

Poland has rich reserves of geothermal energy that is rich in low enthalpy resources, although there is little in the form of naturally occurring thermal springs or outflows.

Geothermal resources with temperatures of between 30 - 120 Celsius degrees are available in Poland within the area of about 250.000 km2. Geothermal waters can be found beneath the surface of almost 80% of the Polish territory. These resources are located in regions of the Polish Lowlands, Podkarpackie and the Polish Carpats (3 sedimentary provinces which cover approx. 80% of the total land area).

The average depth of geothermal water is approximately 2500 metres. Thermal energy contained in these resources is around 24 billion toe. However, for commercial purposes only a small percentage of the above mentioned resources can be used, approximately equivalent to 4 million toe.

Thus, the use of geothermal energy in 2011 is still very small. This energy is used only in a few places for heating purposes, but not for electricity production. Installations using the energy contained in geothermal waters have been built in Zakopane, Nowy Targ (35 to 55 MWt), in Pyrzyce near Szczecin (15 MWt). Mszczonow near Warsaw, in Sucha Beskidzka and Słomniki near Krakow and Uniejew.

Geothermal energy production amounted to: 

•    in 2006 year - 535 TJ,
•    in 2007 year - 439 TJ,
•    and in 2008 year - 531 TJ

Main geothermal heating plants:

1. Bańska Niżna (4.5 MJ / s, target 70 MJ / s),
2. Pyrzyce (15 MJ / s, target 50 MJ / s),
3. Mszczonów (7.3 MJ / s),
4. Uniejów (2.6 MJ / s).

In most recent years, one of the biggest obstacles for the limitated development and the usage of geothermal energy in municipalities was in reference to financial barriers. Despite such a vast waters, their operation is not easy with the main obstacles both from economic implications and conditions of extraction sites. In the future, it is expected that geothermal energy will be most widely used in public buildings.

[PGA, Instytut Energetyki]

Support Mechanisms and feed-in conditions for electricity from renewable energy sources

In Poland, the instrument to promote electricity from renewable energy sources is a quota obligation and a system of tradeable green certificates.

In past years, Poland’s Government has launched several programs and strategies to promote and develop the utilization of RES and to improve energy efficiency. In 2000 "Guidelines for the Energy policy in Poland till 2020" have been approved by the council of Ministers and are supposed to constitute a framework for the development of Poland's energy policy.

Most important Activities to support the development of renewable energy:

• formal and legal activities facilitating access to renewable energy sources; inter alia introduction of an Act on Renewable Energy into the legislative framework;
• economic instruments increasing the feasibility of renewable energy sources utilisation and supporting the development of new systems, e.g. Tradable Green Certificates, that would complement the system of quotas for RES-e for energy utilities;
• educational and promotional activities for renewable energy sources and international co-operation.

[EREC]

In September 2000 the "Development Strategy for the Renewable Energy Sector" was approved by the council of Ministers and has been accepted by parliament on August 2001. It was prepared by the Minister of Environment and aims to harmonize Poland’s environmental and energy policy with those of the EU. The strategy targets a share of RES in primary energy of 7,5 % in 2010 and of 14 % in 2020.

Quota Obligation and Tradeable Certificates

To promote the utilization of RES for energy production the Quota Obligation Ordinance has been introduced in December 2000 which was amended in May 2003. Its key idea is to gradually stimulate the demand for RES electricity and at the same time to facilitate the competitiveness among RES energy producers to satisfy the demand.

The Energy Law Act obliges electricity generators and electricity suppliers to fulfil a certain quota of certificates of origin/ green certificates (art. 9a par. 1 no. 1 Energy Law Act). As an alternative, the companies may pay a fee (art. 9a par. 1 no. 2 Energy Law Act). Satisfying none of these obligations carries a penalty (art. 56 par. 1 no. 1a) Energy Law Act). Furthermore, the Act provides regulations on the conditions operators of renewable energy systems must meet in order to receive certificates of origin/ green certificates (article 9e par. 1-5 Energy Law Act) and trade them (article 9e par. 6-9 Energy Law Act). Electricity producers may also sell their electricity on the market or offer it to an electricity supplier at last year's market price.

In general, all technologies are eligible (§ 4 par. 1 Order of 14/08/2008).

Amount of quota per year. The amount of the quota does not depend on the technology used. In pursuance of § 3 of the Order of 14/08/2008, the quota is as follows:

•    8.7% in 2009
•    10.4% from 2010 to 2012
•    10.9% in 2013
•    11.4% in 2014
•    11.9% in 2015
•    12.4% in 2016
•    12.9% in 2017

of the annual amount of energy sold by the obligated person.

Furthermore, electricity suppliers licensed to supply electricity to households that have not chosen a supplier are obliged to purchase electricity from renewable sources from producers within their area of service at a fixed price (art. 9a par. 6 Energy Act). The fixed price is the mean electricity price of the previous year. It is calculated by the regulatory authority (art. 9a par. 6 in connection with § 23 par. 2 no. 18 b) Energy Law Act).

Amount of payment. The amount of payment corresponds to the price per certificate achieved in the market.

The prices for electricity from renewable energy sources are set during negotiations between an independent power producer and an energy utility. Open tenders for suppliers of green electricity are organised on an annual basis by each distribution company in order to fulfil the minimum level of RES-e as required by law.

• Submission of certificates of origin/ green certificates. In order to provide evidence for the fulfilment of the quota, companies shall present certificates of origin/ green certificates (art. 9a par. 1 no. 1, art. 9e Energy Law Act). Upon request of the regulatory authority, certificates of origin/ green certificates are issued to those system operators that generate electricity from renewable energy sources (art. 9e par. 3 Energy Law Act). Certificates of origin/ green certificates are transferable (art. 9e par. 6 Energy Law Act) and may be acquired by either generating electricity from renewable energy or purchasing certificates from other producers.

• Payment of a fee. The quota obligation may also be fulfilled by paying a fee (art. 9 a par. 1 no. 2 Energy Law Act). The amount of fee is calculated according to a statutorily set formula and published every year (art. 9a par. 2-4 Energy Law Act).

• Penalty charge. If a company fails to present certificates of origin/ green certificates or does not pay the fee, regulatory authority URE charges a penalty (art. 56 par. 1 no. 1a) Energy Law Act). The amount of penalty must exceed a certain minimum amount (art. 56 par. 2 in connection with art. 9a Energy Law Act).

The costs of the quota system are borne by the consumers (§ 15 Order of 14/08/2008). The costs of purchasing certificates of origin/ green certificates and of paying the fee are included in the electricity price and thus equally distributed among the final consumers (§ 15 par. 1 Order of 14/08/2008). The costs that may be passed on to the final consumers are limited in amount (§ 15 par. 2 Order of 14/08/2008).
 
Regulatory authority URE monitors compliance with the quota system (art. 23 par. 2 no. 4 Energy Law Act). The energy companies are obliged to provide all necessary information to assist URE in carrying out these supervising tasks (art. 28 Energy Law Act). Companies may take legal action over URE's decisions (art. 30 Energy Law Act).

[URE, Res-Legal]

Several Funds are available which offer soft loans and subsidies for investments in energy efficiency, RES and other environmental projects. For further information, see Energy Policy / Funds and Programmes.

National Renewable Energy Action Plan and potential fixed tariff

The draft of the National Renewable Energy Action Plan (NREAP) currently published by the Polish Ministry of the Industry on its website (pursuant to the Directive 2009/28/EC) stipulates that potential introduction of fixed tariff (feed-in tariff) for Renewable Energy Sources (RECs) in Poland will not entail worsening of the support that is already in place. Such a change could only be neutral or positive for RECs. The draft of the Polish NREAP further states however that where significant abatements in investment costs occur in some kinds of RECs there would be possible the adoption of adequately lower rates of support for newly planned investments, provided that the rights of investors that already began investment activity are retained.

[Polish REAP]