BiznesAlert EN https://biznesalert.com ENERGY INFRASTRUCTURE ENVIRONMENT Tue, 16 Jul 2019 09:00:44 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.10 Modern technologies for protection of safety and natural environment https://biznesalert.com/gaz-system-safety-environment-technologies/ https://biznesalert.com/gaz-system-safety-environment-technologies/#respond Tue, 16 Jul 2019 09:00:44 +0000 http://biznesalert.com/?p=3481 Construction works related to the installation of the Zdzieszowice – Wrocław gas pipeline under the Oder River in Kąty Opolskie are in progress. The total length of horizontal directional drillings under the rivers along the route of this gas pipeline is about 5 km in the Opolskie and Dolnośląskie Provinces. The construction of the Zdzieszowice […]

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Construction works related to the installation of the Zdzieszowice – Wrocław gas pipeline under the Oder River in Kąty Opolskie are in progress. The total length of horizontal directional drillings under the rivers along the route of this gas pipeline is about 5 km in the Opolskie and Dolnośląskie Provinces.

The construction of the Zdzieszowice – Wrocław gas pipeline in the Opolskie Province is well under way. About 70% of construction works have already been carried out on the 80 km section. The scope of construction included, among others, the execution of 64 trenchless crossings, 38 of which have already been completed.

Currently, in Kąty Opolskie, trenchless crossing of the Oder River is being carried out, involving the installation of a 550-meter-long pipeline with a diameter of 1016 mm under the river bed. The two previously prepared pipeline sections, each approximately 275 m long, will be installed subsequently under the Oder River between Kąty Opolskie and Zimnice Wielkie, in the neighboring commune of Prószków. The modern technology used for this purpose enables drilling in the ground with the use of a cutting head and simultaneous installation of a pipeline under a terrain obstacle. This is possible because of the pressure of the pushing station situated before the obstacle being crossed. Rotational movement of the tool as well as the transport of excavated material is possible thanks to the devices located inside the installed pipeline for the time of drilling. An additional advantage of this technology is the ability to control the pipeline trajectory. The gas pipeline will be founded at a maximum depth of about 13 meters under the bottom of the Oder River at an entrance and exit angle of 5°.

Trenchless methods implemented by Gaz-System are used to ensure protection of the natural environment and to reduce interference with road infrastructure and river navigation. The scope of their application depends on the geological structure and geotechnical characteristics of the soil.

Gaz-System is currently in the process of constructing several key gas pipelines and gas compressor stations in the Opolskie Province, which will be a part of the national transmission system. This will be an important element of the North-South gas corridor, running from the President Lech Kaczyński LNG Terminal in Świnoujście to the south of Poland.

Within the gas corridor in the Opolskie Province, three sections of gas pipelines with a diameter of 1000 mm and a total length of 115 km are being built, i.e. the Zdzieszowice – Wrocław, Zdzieszowice – Kędzierzyn-Koźle and Tworóg – Kędzierzyn-Koźle gas pipelines. The commissioning of gas transmission, through these new sections, is planned for the first half of 2020. The company is also planning to construct a gas compressor station in Kędzierzyn-Koźle in 2021.

Apart from the benefits stemming from the development of gas infrastructure in the region, an important aspect for the local community will be the annual property tax paid by Gaz-System in the amount of up to 2% of the value of the transmission infrastructure built on the area of a given commune.

Gaz-System

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Is it really too late for the nuclear energy in Poland? https://biznesalert.com/poland-nuclear-energy-project/ https://biznesalert.com/poland-nuclear-energy-project/#respond Tue, 16 Jul 2019 08:00:34 +0000 http://biznesalert.com/?p=3475 The two largest political parties in Poland lost their consensus around a key energy project. Is it really too late for the nuclear? – wonders Wojciech Jakóbik, editor-in-chief of BiznesAlert.pl. Is it really too late? During the Civic Coalition Convention prof. Jerzy Buzek said that it is too late for nuclear energy in Poland. – […]

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The two largest political parties in Poland lost their consensus around a key energy project. Is it really too late for the nuclear? – wonders Wojciech Jakóbik, editor-in-chief of BiznesAlert.pl.

Is it really too late?

During the Civic Coalition Convention prof. Jerzy Buzek said that it is too late for nuclear energy in Poland. – Nuclear? I was for it 5-10 years ago, but probably not today. Energy from wind on land is the cheapest, the other is energy from wind at sea, energy from fossil fuels will be more expensive. You have to balance it. It is too late for nuclear energy in Poland. Nobody is ready for it. We do not have experts or professionals in this industry. Finland and Czechia have those, and therefore, the whole sector and they are expanding it. Energy from the nuclear in 12-15 years is too late – said the politician quoted by BiznesAlert.pl. It is worth recalling that PGE EJ1 established during the Civic Platform government is still in operation. The National Center for Nuclear Research is also operating as a human resources center for the Polish nuclear project. The first of these has recently announced a competition for board members. Without the implementation of the nuclear program, the existence of these entities will lose its meaning.

It should be agreed that the nuclear program has a delay. If the Polish Nuclear Power Program from 2014 was implemented as planned, it is likely that the first nuclear power plant originally planned for 2025 would be constructed. The government of the Civic Platform and the Polish People’s Party was initially a supporter of this source of energy, but the cabinet of Ewa Kopacz removed the position of the plenipotentiary for nuclear energy and from then on the nuclear project had been halted. The Government of Law and Justice decided to come up with the concept of building a nuclear power plant from scratch and has been preparing for three years to update the PPEJ and start a technology tender. The time is running out. If the first power plant is supposed to be ready in 2033, the construction estimated for a decade should start in 2023 at latest. Preparation for construction is estimated for about two years, that is, it should start in 2021. Beforehand, a technological partner must be chosen, which is already another year. PPEJ still needs to be updated before the end of 2019.

Breaking the pre-election silence about the nuclear

According to my information, it appears that support for a project within the ruling party is fixed, but the electoral calendar encourages the minimization of inflammatory topics in the public debate in order to maximize the result and win an independent majority. This might be the reason of current reserve in government communications on this subject. An exception may be the PiS convention where minister Naimski spoke about 20 percent share of nuclear energy in the mix until 2040, and minister of energy Tchórzewski who said that the program needs to be speeded up.

Theoretically, it is possible to present a PPEJ update, for example, along with the actual Energy Policy of Poland until 2040. A great opportunity for that would be the Economic Forum in Krynica in September 2019. Then, there could be a “nuclear acceleration” signaled by the energy minister Krzysztof Tchórzewski.

Market and politics in the game for the nuclear

If the work on the Polish nuclear could be speeded up, the financing model will have to be resolved. Minister Tchórzewski spoke about the necessity of obtaining half of the funds from a foreign investor in the amount of about 30 billion dollars. The government has repeatedly declared that in addition it wants to obtain cheap loans with a long-term repayment from financial entities looking in the long-term, for example, retirement funds. The most important players for the Polish nuclear are the French, Koreans and Americans. Cooperation with each of them has advantages and disadvantages.

France can give technology, finance, and become more politically involved with Poland in the European Union arena. The fight against Donald Tusk for the chair of the European Council may be a precedent. Interestingly, during the campaign in this case, the PPEJ was quickly overtaken and EDF talked about engagement in Poland. This may mean that the prime minister won the support of his candidacy by President Francois Hollande for permission to build an NPP involving EDF. Theoretically, the cooperation of this company with a Japanese subcontractor would guarantee a quick pace of work. France, however, now has a problem with the credibility of the policy towards the nuclear. They consider turning off the effective Fessenheim power plant and more. They are silent on the European forum about the nuclear. Therefore, EDF is not perceived as a reliable partner for the time being. Interestingly, Hollande did not close Fessenheim, and Macron has not yet decided on this matter. There is, therefore, a chance to reverse the illusion of the nuclear in France.

South Korea is in turn a partner desirable from an economic point of view. The experience of project implementation in Saudi Arabia and others proves that it can finish the project quickly. It can also offer technological cooperation, for example in the armaments sector. Koreans, however, lack the political component that other players give.
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The US does not have one nuclear company like EDF and has so far had a purely market approach towards the nuclear sector. However, due to the importance of the civil nuclear sector for the development of the nuclear triad (the prospect of a retirement in the power plant for military specialists), as well as the growing involvement of nuclear companies from China and Russia in Central and Eastern Europe, which are another manifestation of the political aspirations of these countries in the region, Americans may be interested in offering Poland and the Czech Republic a completely new solution. It could be assumed that they would co-finance the implementation of a nuclear project through legislative initiatives for the export of nuclear technology or the extension of the catalog of states deserving foreign support for security reasons – in order to stop the expansion of China and Russia. Their advantage is the possibility of including other players in the supply chain of the Polish nuclear power plant. For example, AP 1000 reactors could be created in Korea. Americans want to remain leaders in nuclear energy and need it for military purposes. Their interest in projects in the region is enhanced by political competition from the East. Is it enough for their approach to change from market to political?

Japan could engage companies that could become subcontractors of other components. They also think purely by market principles and invest in the training of Polish nuclear staff. For example, this week the three-week training of officials from the Ministry of Energy in Japan begins.

The European Commission will have to assess the compliance of a possible tender for a nuclear with regulations. A single player promotion solution can be a problem from their point of view. However, there are precedents. In the past, the European Commission has approved the contract for Hungarian Paks and the Hinkley Point support model. However, it is worth remembering that the new European Commission may be more influenced by liberals and greens, but it is not known how this will affect its approach to nuclear energy.

Election first?

If Poles really want to build an NPP, they must hurry. It is not known, however, whether they will be in a hurry, because soon next elections will be held in Poland, this time parliamentary. Signals from the convention of Law and Justice may indicate that the party of power is actually ready to accelerate. The criticism of the nuclear program by the representatives of the Civic Coalition may be – paradoxically, but according to political mechanisms – a factor that further encourages action.

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Polish Briefing: The discussion about climate neutrality must take the social aspect into account https://biznesalert.com/climate-neutrality-pkee-summer-day-pge/ https://biznesalert.com/climate-neutrality-pkee-summer-day-pge/#respond Tue, 16 Jul 2019 07:00:21 +0000 http://biznesalert.com/?p=3478 What goes on in Poland on the 16th of July. Baranowski: The discussion about climate neutrality must take the social aspect into account The President of Polska Grupa Energetyczna (PGE), Henryk Baranowski, spoke in favor of a just energy transition during the opening of PKEE Summer Day in Brussels. – The social aspect of transformation […]

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What goes on in Poland on the 16th of July.

Baranowski: The discussion about climate neutrality must take the social aspect into account

The President of Polska Grupa Energetyczna (PGE), Henryk Baranowski, spoke in favor of a just energy transition during the opening of PKEE Summer Day in Brussels. – The social aspect of transformation can not be underestimated – the conference host claimed. – These will be key subjects for discussion on the objectives of the European Union by 2050. Climate neutrality should include support for changes and various starting points in individual countries – he said.

According to the president of PGE, it should not be forgotten that countries with Gross Domestic Product below the European average are not able to pay for changes without support, because otherwise they may face the risk of increasing energy poverty. Baranowski expressed his hope that the new European Commission will work for a just energy transformation in the spirit of the COP24 climate summit in Katowice and taking into account the social aspect.

Morawiecka: Offshore simply pays off

The CEO of PGE Baltica responsible for the offshore wind farm project at PGE3 argues that this technology pays off, and it is not worth not to have it.

– You can often hear that offshore wind farms are good but too expensive. We can not talk like that anymore. This technology is already profitable. Cost is the most important argument for wind farms at sea. It has gone so low that offshore is now profitable. Soon it may turn out that it is unprofitable to not have this technology – argued Monika Morawiecka.

– We have economic reasons for the development of renewable sources. Of course, we also have important climate policy goals, but even without them it would be worth investing – she added during the PKEE Summer Day in Brussels.

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Buzek: It is too late for nuclear energy in Poland https://biznesalert.com/buzek-nuclear-energy-poland/ https://biznesalert.com/buzek-nuclear-energy-poland/#respond Mon, 15 Jul 2019 09:00:02 +0000 http://biznesalert.com/?p=3472 – It is too late for nuclear energy in Poland. Nuclear energy in 10-12 years is too distant perspective. In Poland, we do not have a sector and experts in this industry. Today, energy from wind on land and sea is the cheapest. Energy from coal is getting more and more expensive. We need gas. […]

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– It is too late for nuclear energy in Poland. Nuclear energy in 10-12 years is too distant perspective. In Poland, we do not have a sector and experts in this industry. Today, energy from wind on land and sea is the cheapest. Energy from coal is getting more and more expensive. We need gas. How much? For how long? This needs to be balanced – said MEP Jerzy Buzek during the panel “Energy – reconcile black with green” held during the Program Forum of the Civic Coalition.

Jerzy Buzek said that when he speaks in Poland, he is perceived as the most “green”, while in Brussels he is the most “black”. – In the case of energy transformation, it is important to remember the people. About 50 million people live in mining areas in Europe. EU actions should lead the transformation so that it will shield against its negative effects. That is why it was possible to create an aid instrument in the EU – support for post-mining regions. In the EU ETS emissions trading system, we have a support mechanism for the Polish energy industry, which can be used in transformation. These funds come from the sale of emission allowances. They should be used for energy transformation – he said.

– For the energy transformation of the mining regions, the EU will allocate EUR 5 billion, however, it is not enough. Funds for this purpose must be part of the energy policy in regional policy, as well as a separate expenditure in the EU budget. Poland should have special conditions to be able to fulfill its emission goals, because we will not be able to cut emissions without public acceptance – Buzek stressed. He added that Poland still does not use research institutes dealing with the technology of using clean coal.

– There are questions about whether to use gas for energy transformation and where it should come from. Still with the administration of President Barack Obama, Europe negotiated the opening of the LNG market. We managed to liberalize it. The decision is obtained within 3 months. At the beginning of 2016, Portugal received the first LNG cargo from the USA. We also buy this gas. The question is how much we need it, because the EBRD (European Bank for Reconstruction and Development) also mentions this issue in its calculations. LNG as a natural gas is also a fossil fuel. The bank’s approach is that with the limitation of coal, you can switch to gas as less, but still emission fuel – he reminded.

– Nuclear? I was for it 5-10 years ago, but probably not today. Energy from wind on land is the cheapest, the other is energy from wind at sea, energy from fossil fuels will be more expensive. You have to balance it. It is too late for nuclear energy in Poland. Nobody is ready for it. We do not have experts or professionals in this industry. Finland and Czechia have those, and therefore, the whole sector and they are expanding it. Energy from the nuclear in 12-15 years is too late – he emphasized.

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Polish Briefing: Civic Coalition proposes a 4D for the energy sector https://biznesalert.com/civic-coalition-energy-sector-program-4d-czerwinski/ https://biznesalert.com/civic-coalition-energy-sector-program-4d-czerwinski/#respond Mon, 15 Jul 2019 08:00:14 +0000 http://biznesalert.com/?p=3470 What goes on in Poland on the 15th of July. Czerwiński: Civic Coalition proposes a 4D for the energy sector Poles should take an active part in the development of prosumer energy. The energy policy of the current government is contradictory to the challenges that the world is struggling with and to the goals that […]

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What goes on in Poland on the 15th of July.

Czerwiński: Civic Coalition proposes a 4D for the energy sector

Poles should take an active part in the development of prosumer energy. The energy policy of the current government is contradictory to the challenges that the world is struggling with and to the goals that energy corporations want to implement around the world. New priorities for the energy sector should be: diversification, digitalization, decentralization and deconcentration – Andrzej Czerwiński, MP of the Civic Platform (PO), said during the Civic Coalition (KO) Program Forum, during the panel “Clean Energy, effective heat”.

Diagnosis according to KO

Czerwiński emphasized that absurdities occur in the Polish power industry. – The world focuses on innovation, artificial intelligence, clean climate, a new approach to schooling. As we look at what Poland is doing, it is clear that we are going against the tide. The energy industry is still high-emission, it comes to absurds, for instance when energy companies build a body for an electric vehicle – he pointed out. – It is ordered to sell energy to power companies below its value just because we have an election year. A fund was created to sell emission allowances, subsidized from citizens’ pockets – he mentioned.

He stressed that after 30 years of transformation, Poland is on the verge of an energetic crisis. – It still focuses on the coal industry. Support for this industry was solved through the capacity market, but it was based only on coal – he said. – Durability in the energy and heating sector is a threat to health – he warned.

KO suggestions

The PO – KO proposal concerns – as Czerwiński added – investments in prosumer energy. – We want to obtain up to 15 GW of power and 14 percent of the share of distributed energy in the production of energy in Poland, and also give an impulse for the development of green industry. The state should cover installation costs for its own needs. It is also necessary to introduce lower transmission tariffs for participants of local markets – the MP pointed out.

He proposed to focus on cogeneration as a flexible source of cheap heat instead of new capacities in coal-fired power plants, arguing that thanks to it we can obtain 7 GW of new capacities and 50 TWh from cogeneration installations. – Let’s focus on the flexibility of the system, the construction of local supply and energy storage markets and local, flexible markets, renewable energy and clusters – he said.

He emphasized that energy companies are to play a public role, and not carry out party orders. – In the meantime, we hear about several dozen thousand party activists employed in companies. The value of energy companies needs to be rebuilt. Just look at the stock market quotes and see how much they are worth today – he said.

He stressed that diversification, digitalization, decentralization and deconcentration should be new priorities for the energy sector. – We propose a new philosophy of action by supporting the activity of Poles in securing the interests of minority shareholders – added Czerwiński.

He stressed that Civic Coalition’s energy sector of the energy sector of tomorrow, based on the promotion of individual energy, support for investment in own sources, decisions on RES investments at local level, lower costs due to investments in modern, competitive and energy-saving sources, modern strategies for companies, professional management and building value of energy concerns, regionalization instead of centralization, low-emission economy and green industry.

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Polish Briefing: “The merger of Orlen and Lotos is a chance” https://biznesalert.com/naimski-orlen-lotos-merger-harmony-link/ https://biznesalert.com/naimski-orlen-lotos-merger-harmony-link/#respond Wed, 10 Jul 2019 07:00:05 +0000 http://biznesalert.com/?p=3467 What goes on in Poland on the 10th of July. Naimski: The merger of Orlen and Lotos is a chance Government Plenipotentiary for strategic energy infrastructure Piotr Naimski opted for the merger of PKN Orlen and Grupa Lotos, the application for which was sent to the European Commission. – The merger of Orlen and Lotos […]

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What goes on in Poland on the 10th of July.

Naimski: The merger of Orlen and Lotos is a chance

Government Plenipotentiary for strategic energy infrastructure Piotr Naimski opted for the merger of PKN Orlen and Grupa Lotos, the application for which was sent to the European Commission.

– The merger of Orlen and Lotos may be important from the point of view of the competitiveness of the Polish economy, the entire economy, because the fuel sector affects the economy, on a European scale. This is a strategy that leads to creation of a Polish large company that will be comparable with large European companies that are often state-owned or under the influence of the state like the French EDF or Swedish Vattenfall, which pursue their interests, but also the ones of their mother countries – said Naimski.

– This is a chance. I hope that it will succeed and the results will be positive – said the interviewee of the Polish Radio.

Naimski on potential problems of the Harmony Link: These voices are quite routine

Dziennik Gazeta Prawna has published an opinion suggesting that the construction of Harmony Link, which is to make the Baltic States independent of the post-Soviet energy system by Poland, may be threatened by Russia’s actions.

– One of the elements necessary for this operation is the connection of the Harmony Link submarine cable to 2025 – the government plenipotentiary for strategic infrastructure Piotr Naimski admitted in an interview in the First Programme of the Polish Radio. – Preparations for this investment have already begun. They are run by Polskie Sieci Elektroenergetyczne (PSE – ed.) and Litgrid – he reminded.

He also referred to speculation about potential problems with this investment. – Such voices are quite routine. Whatever we do in the region of Central Europe that would make energy systems independent and energy supplies, or at all from Russian influence, is commented and contested in various ways. In general, there are many voices that it will be impossible to discourage us. If it is impossible, why bother to do this? – said Naimski. – Of course there may be problems. This is not in the interest of Russian suppliers. I do believe, however, that together with the Baltic countries and, this time with the European Commission, we will be able to deal with – the guest of PR 1 added.

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Coal+… and what next? https://biznesalert.com/coal-and-what-next/ https://biznesalert.com/coal-and-what-next/#respond Tue, 09 Jul 2019 08:00:10 +0000 http://biznesalert.com/?p=3465 The program convention of Law and Justice from July 5-7, from the point of view of the energy sector, passed under the slogan “coal plus” articulated by Minister Piotr Naimski. The energy panel was an opportunity to support nuclear energy, not renewable energy. – Poland is a part of the Europe, part of the world, […]

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The program convention of Law and Justice from July 5-7, from the point of view of the energy sector, passed under the slogan “coal plus” articulated by Minister Piotr Naimski. The energy panel was an opportunity to support nuclear energy, not renewable energy.

– Poland is a part of the Europe, part of the world, and rules from outside are imposed on us. They cause that by preserving coal, we have to keep certain standards. The energy strategy should be based on the slogan: “Coal plus”. We have coal in Poland and this coal is and will remain one of the pillars of our energy security. (…) This “plus” for coal will mean mainly additional raw materials. We must have gas, oil, we need to have RES, we must have access and implemented instruments using nuclear energy – said the minister quoted by the Polish Press Agency.

He announced that Poland should have at least six nuclear reactors by 2040. – We have an ambitious program for building nuclear energy. By 2040, we want to build at least 6 nuclear reactors that will provide 20 percent of the energy consumed in Poland – he said.

The Minister’s statement was devoid of specific signals in favor of Renewable Energy Sources. The convention was held in Katowice. An interesting accent was giving the president of Law and Justice Jarosław Kaczyński a gift from mine rescuers.

Interestingly, the Minister of Entrepreneurship and Technology Jadwiga Emilewicz, known for promoting RES, did not take part in the energy convention panel, but in the panel “City Plus”. During it she spoke about the plan for decentralization of central institutions supported, among others, by the Jagiellonian Club from Cracov, from which the minister comes.

The politological analysis of the statements from the latest Law and Justice convention allows to confirm the theses suggested earlier in BiznesAlert.pl. One should not expect acceleration of regulation in favor of the RES sector until the parliamentary elections in autumn 2019: there will be no liberalization of the distance law, nor larger concessions for this sector. It is not known whether a special offshore bill would be created. However, a decisive statement on nuclear energy would suggest speeding up the work to update the Polish Nuclear Power Program and concretizing the plan to include the USA in the financing model for the Polish nuclear power plant.

Minister Naimski announced such acceleration. It is worth recalling that during the holidays we will know the final shape of the energy strategy, that is no longer a project, but the proper Energy Policy of Poland until 2040. Will PPEJ be updated after this?

Perhaps the credibility of the ruling party towards the electorate, especially from Silesia, where the convention took place, required the word coal plus slogan. However, we need more to finally decide what sources, besides coal, will provide Poland with safety and lower energy prices, i.e. nuclear acceleration is needed. Its absence would put into question the credibility of the Polish energy strategy.

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Polish Briefing: US sanctions against Nord Stream 2 without Trump’s signature https://biznesalert.com/us-sanctions-nord-stream-2-ukraine-trump/ https://biznesalert.com/us-sanctions-nord-stream-2-ukraine-trump/#respond Tue, 09 Jul 2019 07:00:46 +0000 http://biznesalert.com/?p=3462 What goes on in Poland on the 9th of July. US sanctions against Nord Stream 2 remain without Trump’s signature The President of Ukraine, Volodymyr Zełenski referred to the topic of Nord Stream 2 during his visit to Lugansk together with the President of the European Council, Donald Tusk. He counts on US sanctions for […]

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What goes on in Poland on the 9th of July.

US sanctions against Nord Stream 2 remain without Trump’s signature

The President of Ukraine, Volodymyr Zełenski referred to the topic of Nord Stream 2 during his visit to Lugansk together with the President of the European Council, Donald Tusk. He counts on US sanctions for the disputed project. US President Donald Trump has still not signed any draft of restrictions.

Politicians appeared in Luganska Stanica near the area of ​​war activities in Ukraine, conducted by forces supported by Russia. They honored bomb victims. On this occasion, Zełenski mentioned talks with the President of the Republic of Poland Andrzej Duda about the disputed Nord Stream 2 project.

In his opinion, the topic will appear during the meeting with Duda scheduled for September, but Ukraine will not be able to convince Europe to block construction, because local businesses in Germany and France will prevent action against Nord Stream 2.

German Minister of Economy Peter Altmeier repeated in a recent interview for Bild newspaper that the new gas pipeline from Russia to his country will not make it dependent on Russian gas, because the planned LNG terminals will be an alternative. However, a new gas is needed to move away from the nuclear energy and coal planned for 2035-38 that requires the protection of renewable sources by gas.

Altmeier assured that he will work to maintain gas supplies from Russia via Ukraine, despite the alternative in the form of Nord Stream 2. – I think that Ms. Merkel and Mr. Macron will not stop the construction of Nord Stream, because their local business impacts them too much. They cannot do anything – admitted the Ukrainian president. In his opinion, only US intervention can help. – This is the only solution. I will meet with President Trump in the USA. This is the only person who can solve this problem in favor of Ukraine – he said. The Americans are considering introducing sanctions against Nord Stream 2 in line with several bills submitted to the Senate, but have not yet taken a decision on this matter. It can be made by signature of President Donald Trump under one of the laws. Poles appealed for US sanctions against Nord Stream 2 in October 2018, for now without success.

Gazprom’s Vice President Vitaliy Markelov argued at the annual meeting of company shareholders that Russia is ready to extend the existing gas supply agreement through Ukraine. He argued that Nord Stream 2 will be built on time, i.e. at the end of this year.

This information contradicts reports from BiznesAlert.pl about the delay of the project recorded in the documents of the company responsible for its construction. The future of supplies through Ukraine will depend on the pace of implementation of the project. Without a ready Nord Stream 2, the Russians will have to go on a system extending supplies through this country. Kiev and Brussels want a new contract in line with European regulations limiting Gazprom.

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Dudek: High time for (green) realism in the EU energy transition  https://biznesalert.com/%e2%80%a8dudek-its-time-for-green-realism-in-the-eus-energy-transformation/ https://biznesalert.com/%e2%80%a8dudek-its-time-for-green-realism-in-the-eus-energy-transformation/#respond Fri, 05 Jul 2019 08:00:06 +0000 http://biznesalert.com/?p=3457 High time for making the EU energy transition more inclusive and focusing more on social imbalances. What is the new idea for establishing Just Energy Transition Fund, JET Fund, about? Why it is worth considering by policy-makers? How is it different from other instruments mitigating adverse effects of the energy transition? – writes Jerzy Dudek, […]

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High time for making the EU energy transition more inclusive and focusing more on social imbalances. What is the new idea for establishing Just Energy Transition Fund, JET Fund, about? Why it is worth considering by policy-makers? How is it different from other instruments mitigating adverse effects of the energy transition? – writes Jerzy Dudek, Fellow at the Polish Economic Institute.

What is JET Fund (Just Energy Transition Fund)?

Generally speaking, it is an attempt to improve the approach towards the EU energy transition. Instead of focusing only on setting a carbon price and leaving the rest to private decisions, it aims at taking greater account of increasing social inequalities, related to the transition. JET Fund is an idea for ​​a new EU financial instrument. It would support countries and regions finding the energy transition to climate neutrality challenging for reasons like high dependence on fossil fuels, limited access to capital or adverse social effects (eg increase of inequalities and energy poverty).

Why focusing on social inequalities?

Energy transition to climate neutral economy will be very costly. It means both an increase in energy prices and growing social costs related to technological changes. Importantly, costs are not evenly distributed leading to increasing social inequalities. For instance, the share of energy costs in the budget of the poorest European households increased from 6 percent up to 9 percent in 2000-2014, according to the European Commission. At the same time, the share of energy costs in the budget of average European households also grew, but only by 1 pp. – from 5 percent up to 6 percent (see more, J. Dudek, P. Szlagowski, What next with the energy policy of the European Union?, Polish Economic Institute, 2019). Without broad social support, energy transition will not succeed. The example of the French yellow vests movement (gilets jaunes), spurred by the increase in fuel taxation, should be a lesson for the future. 

What is JET Fund aiming for specifically?

First, the Fund would promote inclusive energy transition by allowing to benefit from this process those that, on the one hand, are affected by the costs of energy transition, and, on the other hand, have limited access to capital. Second, it would prevent excessive economic inequalities and energy poverty. Third, it would support the local use of modern energy technologies. Fourth, it would contribute to the increase of energy efficiency. Finally, it would finance development of new, low-carbon industries. 

In what way would these goals be implemented?

JET Fund would target primarily households, local communities, and small and medium-sized enterprises. For example, this could be done through instruments supporting investment financing such as preferential loans, direct payments or guarantees. Additionally, the Fund could promote developing models of cooperation with enterprises and financial institutions. As for the form of JET Fund, it would be modeled on structural or quasi-structural funds (Cohesion Fund). Crucially, the Fund would be allocated additional resources to already existing instruments and funds dedicated to them.

What is the difference between JET Fund and other instruments mitigating adverse effects of decarbonization, such as Modernization Fund?

JET Fund should focus on financing small projects located close to citizens, which the Modernization Fund deals with only marginally (as its main objective is modernization of the energy and industrial infrastructure). Thus, the JET Fund should be a complementary mechanism. Recently, some of the elements that were originally included in the rejected Energy Transition Fund were included in the framework of the Modernization Fund. It is worth noting, however, that the nature of this idea was different. It focused on the inhabitants of coal regions and was to serve the retraining of employees in the coal mining sector. JET Fund, on the other hand, is to have a wide range of beneficiaries and focus on counteracting the growth of social inequalities.

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Polish Briefing: Jerzy Buzek will lead the European Energy Forum again https://biznesalert.com/jerzy-buzek-itre-european-energy-forum/ https://biznesalert.com/jerzy-buzek-itre-european-energy-forum/#respond Fri, 05 Jul 2019 07:00:06 +0000 http://biznesalert.com/?p=3455 What goes on in Poland on the 5th of July. Jerzy Buzek became the chairman of the European Energy Forum again Jerzy Buzek will lead the European Energy Forum (EEF) in the European Parliament for the next five-year term. Key MEPs and representatives of the European Commission, Member States, the energy sector and energy-intensive industries […]

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What goes on in Poland on the 5th of July.

Jerzy Buzek became the chairman of the European Energy Forum again

Jerzy Buzek will lead the European Energy Forum (EEF) in the European Parliament for the next five-year term. Key MEPs and representatives of the European Commission, Member States, the energy sector and energy-intensive industries take part in its work.

After the election, Jerzy Buzek said: “I thank my fellow Members for the trust that will allow me to continue the mandate of the chairman. The role and importance of EEF is constantly growing – along with the entire Energy Union. In the previous term, we adopted many necessary legal solutions: from the Clean Energy Package and the energy and climate goals for 2030 through the regulation on the security of gas supply – important in the event of energy crises – to the amendment of the Gas Directive, including EU law, inter alia the Nord Stream 2 gas pipeline. In the new EP legislature, we must ensure that all these provisions are efficiently and fully implemented. This is a great task for us. ”

Buzek stressed that the Forum focuses on issues particularly important for Poland: “We are ahead of work related to the EU’s energy and climate strategy until 2050, the development of renewable energy and prosumer energy, the fight against smog and energy poverty, and ensuring a fair transformation of mining regions . All these are key issues not only for the Polish power industry or the economy and jobs – they also concern the health and comfort of our citizens’ lives. These will be my priorities as chairman for the next five years. ” The European Energy Forum brings together MEPs – as members – and over 80 companies and institutions as associate members. From Poland, these include: PGNiG, the Polish Electricity Association, Orlen, Enea and CEEP.

We know the composition of the ITRE committee

Members of the European Parliament approved on Wednesday afternoon the size of all Parliament committees and sub-committees. Their composition was confirmed by political groups on Wednesday evening. The second largest in the EP is the Committee on Industry, Research and Energy (ITRE). The Committee on Industry, Research and Energy will be composed of 72 MEPs. This is therefore the second largest committee of the European Parliament.

Poland will be represented in the committee by its chairman in the previous EP term of office Jerzy Buzek, Izabela Kloc, Łukasz Kuhot, Zdzisław Krasnodębski and Grzegorz Tobiszowski. The list of deputies of ITRE included six MEPs from Poland: Marek Balt, Adam Jarubas, Elżbieta Kruk, Janusz Lewandowski, Jacek Saryusz-Wolski and Róża Thun.

The Chairman and vice-president of ITRE will be elected at the constitutional committee meetings. The ITRE commission’s inaugural meeting is scheduled to take place on 10 July.

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