BiznesAlert EN http://biznesalert.com ENERGY INFRASTRUCTURE ENIVRONMENT Thu, 14 Dec 2017 10:03:00 +0000 en-US hourly 1 https://wordpress.org/?v=4.7.8 Trust, but check. Poland in the context of German-Russian rapprochement thanks to the deal – deposits in exchange for gas http://biznesalert.com/trust-check-poland-context-german-russian-rapprochement-thanks-deal-deposits-exchange-gas/ http://biznesalert.com/trust-check-poland-context-german-russian-rapprochement-thanks-deal-deposits-exchange-gas/#respond Thu, 14 Dec 2017 10:00:24 +0000 http://biznesalert.com/?p=1215 Poland should strive to get closer to Germany. However, it cannot be done with the eyes closed, not to become a victim of German rapprochement with Russia – writes Wojciech Jakóbik, editor-in-chief of BiznesAlert.pl. Gestures and facts On December 7th, 1970, Willy Brandt laid a wreath at the monument of the Warsaw Ghetto Uprising. It […]

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Poland should strive to get closer to Germany. However, it cannot be done with the eyes closed, not to become a victim of German rapprochement with Russia – writes Wojciech Jakóbik, editor-in-chief of BiznesAlert.pl.

Gestures and facts

On December 7th, 1970, Willy Brandt laid a wreath at the monument of the Warsaw Ghetto Uprising. It can be rightly pointed out that this political gesture was part of a wider policy, which is a recognition of the western border of People’s Republic of Poland. This was important for Poles who were under the influence of anti-German Soviet propaganda, an example of which is the popular series “Czterej Pancerni” [Four Tankmen and a Dog]. For Germans, however, it was another step towards getting closer to Russia through Ostpolitik. They needed it to obtain future consent for the unification of the country. Warsaw was only a stop for Berlin on the way to Moscow and one should not approach Brandt’s gesture too emotionally.

The foundation of the rapprochement was the “pipe for gas” deal described many times in BiznesAlert.pl. It had a political dimension. It was about getting closer by strengthening business ties with the Soviets. It also had an economic element, because it allowed Germany to develop the chemical industry and power engineering based on cheap gas. The development of this cooperation was not stopped by the interference of Ronald Raegan, who wanted to impose sanctions on energy cooperation with Russia, but the Western business entanglement in gas cooperation with Russia, e.g. of the companies producing turbines from the United Kingdom, became an obstacle. Thus, it turns out that Ostpolitik, remembered by Poles by the image of the German chancellor kneeling on the already rebuilt ghetto, served to bring Europe closer to Russia, and its possible side effect was a recognition of the western border of the PRL. However, anti-German campaign is not over.

Economic symbiosis blocks politicians

After 47 years, the economic symbiosis of Germany and Russia also does not allow for any decisive steps towards the latter. Despite the illegal annexation of Crimea, which has not been stopped by involvement in gas cooperation through the Nord Stream project, German diplomacy has spread a protective umbrella on the Nord Stream 2 project, which will deepen this relationship. Russia is again threatened by US sanctions, which President Donald Trump is considering, and European business is again protesting (this time Austria and Germany). Meanwhile, Berlin’s eternal apologists are again present in Poland, explaining that Chancellor Angela Merkel secretly wants to break off gas ties with Russia, but her former and potential coalition blocks her. Enough of this!

Cooperation between Poland and Germany in the European Union is highly desirable. ,Poles are ready for far-reaching concessions, as evidenced by the signature of the Polish Prime Minister under the energy and climate package, which forces the Polish economy to a painful, but probably unavoidable, energy transformation. On the other hand, in the interest of several companies, such as the chemical BASF, Germany continues to pursue particular interests to the detriment of the partner – Poland, but also the entire European Union, delegitimizing its institutions through informal influence and paralyzing decisions affecting Nord Stream 2.

Deposits in exchange for gas

Polish-German friendship is most desirable. However, it should be guided by a proverb from Russia, apparently a still more important partner for Berlin than Warsaw – trust, but check. So far, the test result is negative. The most recent proof is the deposit in exchange for gas deal, the manifestation of which in recent days is the Wintershall merger (BASF’s daughter) with DEA (LetterOne’s daughter of  the oligarch Mikhail Fridman), more about which can be read at BIznesAlert.pl.

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Will Prime Minister Morawiecki bring a breakthrough in power engineering? http://biznesalert.com/will-prime-minister-morawiecki-bring-breakthrough-power-engineering/ http://biznesalert.com/will-prime-minister-morawiecki-bring-breakthrough-power-engineering/#respond Thu, 14 Dec 2017 09:00:55 +0000 http://biznesalert.com/?p=1213 Prime Minister Beata Szydło submitted her resignation to the political committee of the ruling party. Her successor is to be Mateusz Morawiecki. Perhaps he will manage to overcome the deadlock around the Responsible Development Strategy, but before the new order arrives, the energy sector must face a transition period and a new carousel of positions. […]

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Prime Minister Beata Szydło submitted her resignation to the political committee of the ruling party. Her successor is to be Mateusz Morawiecki. Perhaps he will manage to overcome the deadlock around the Responsible Development Strategy, but before the new order arrives, the energy sector must face a transition period and a new carousel of positions. The new order may be born in pain and chaos – says Wojciech Jakóbik, editor-in-chief of BiznesAlert.pl.

Personnel carousel

The period of uncertainty related to the several-month discussion on the reconstruction of the government is entering a new stage. It is already known that Mateusz Morawiecki, will be the new Prime Minister, the current Minister of Development and Finance. It is not known who will replace him in his current positions. We also do not know the composition of the new government, which may be presented on Tuesday, December 12th. Uncertainty will persist, at least until these decisions are made.

However, it may take longer, because with the change in the prime minister’s chair and in the ministries a personnel carousel may appear in state-owned companies. It is worth remembering that the ruling party is divided into factions. In the belief of its political activists, the election of Morawiecki as prime minister will be a significant strengthening of one of them, and a strike in groups surrounding the Minister of Justice Zbigniew Ziobro, Minister of Environment Jan Szyszka (Radio Maryja environment) and Antoni Macierewicz Minister of National Defense. It is not known what will be the impact of strengthening the Morawiecki group on the forces of the convent, i.e. the guard of president Jarosław Kaczyński from the nineties of the previous century, as the Minister of Energy Krzysztof Tchórzewski.

The new balance of forces will force new constellations in companies, which in the first place may affect the power industry. Potentially, it can break the deadlock around the Responsible Development Strategy by the future prime minister. It assumes an energy shift based on renewable energy sources, combating air pollution, development of nuclear energy. Until now, it was a wish list concert. It became the resultant of the interests of various ministries, which influenced its final shape. The most spectacular intervention was the attempt to remove the atom from the document by the minister of the environment.

Breaking the deadlock

The disputes over the energy sector resulted from differences within the energy sector, where the coal and atomic lobbies clashed, and between the various ministers who supported the RES and biomass lobby. An example of an exchange of strikes between these groups may be the dispute over the Clean Air Program between development and energy ministries, or first conversion of a gas-to-carbon block project at the Azoty Puławy Group, and then the conversion of the carbon-to-gas block (back) at the Dolna Odra Power Plant belonging to Polska Grupa Energetyczna. The most prominent example is the creation of a ministry of energy, which was supposed to be a super-department, but it had to leave some competences to other ministries by playing fractions.

Prime Minister Morawiecki can go beyond these divisions and set the direction of energy development, thus breaking the deadlock. However, to break the divisions, he will have to impose a new order. The “Winner Takes Everything” scenario will not necessarily be accepted by the other fractions. Disappointment with the dismissal of the popular Prime Minister Beata Szydło can be seen in the party pits and the media associated with the ruling political option. Probably only the support of the real leader of the ruling camp, i.e. Jarosław Kaczyński, will give Morawiecki the strength to implement reforms. In power engineering, this would mean breaking the deadlock around the energy strategy and updating the Polish Nuclear Power Program.

Reformer or successor?

This is an opportunity to speculate on the reasons for Kaczyński’s choice against a part of the party. It avoids the little stabilization which, from the point of view of the state, gave rise to undesirable inertia, but for the party it meant a balance of powers. Perhaps it is about accelerating the reforms at the halfway point of his party’s government. However, it can also be about the succession in case he wants to retire quickly. There is still no successor who would replace him at the head of the party, for example in the event of health problems. Those concerns are also felt among party activists.

From the point of view of power engineering, and more broadly, business, Prime Minister Mateusz Morawiecki can potentially bring stability to the expected reforms for innovative and clean energy. These changes, however, must precede a transition period in which different scenarios are possible and the risk of a painful crisis in the personnel policy is growing. If Morawiecki is to bring a new order, it will be born in pain. This means practically that business must prepare for further instability. Before the inertia in the government and companies is overcome, it will strengthen due to the anticipation of personnel and strategic changes in certain entities. The market of names has already begun.

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Polish Briefing: USA criticizes Germany’s support of Nord Stream 2 http://biznesalert.com/polish-briefing-usa-criticizes-germanys-support-nord-stream-2/ http://biznesalert.com/polish-briefing-usa-criticizes-germanys-support-nord-stream-2/#respond Thu, 14 Dec 2017 08:00:59 +0000 http://biznesalert.com/?p=1219 What goes on in Poland on the 14th of December. USA criticizes Germany’s support of Nord Stream 2 Top state department official praises Denmark for passing law that could hamper pipeline project. The top State Department official overseeing Europe offered harsh words Tuesday for Germany over the country’s continued support for a new Russian gas pipeline […]

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What goes on in Poland on the 14th of December.

USA criticizes Germany’s support of Nord Stream 2

Top state department official praises Denmark for passing law that could hamper pipeline project.

The top State Department official overseeing Europe offered harsh words Tuesday for Germany over the country’s continued support for a new Russian gas pipeline to Europe, while praising Denmark for passing a law that could hamper the project.

A. Wess Mitchell, assistant secretary of State for European and Eurasian affairs, said the formation of a new government in Germany offers an opportunity for the U.S. to make a renewed case against the Russian pipeline, known as Nord Stream 2, which Washington says will give Moscow more leverage over Europe’s energy supply.
He said the new government gives the U.S. a chance to call on Germany “to show responsibility in a European context.”

“On energy security, Germany gets it wrong,” Mr. Mitchell said in testimony to the Senate Foreign Relations Committee, referring to the country’s support for the Russian gas pipeline. “And it gets it wrong in a way that hurts other EU member states.”

The European Commission will support Polish renewable energy program

The European Commission approved under EU State aid rules a Polish renewable energy scheme and a reduced levy to finance the scheme for energy-intensive users. This will further EU energy and climate goals and ensure the global competitiveness of energy-intensive users whilst preserving competition.

Commissioner Margrethe Vestager, in charge of competition policy, said: “We want to make progress towards green energy for the sake of our environment but also for European economic growth. The Polish support scheme will increase the share of green energy in Poland’s energy mix and help the country’s energy transition. It will also preserve the global competitiveness of companies that are heavily energy dependent.”

The scheme, with a total budget of PLN 40 billion (around €9.4 billion), will grant State support to producers of electricity from renewable sources. Beneficiaries will be selected by means of competitive auctions. The first two rounds took place in December 2016 and June 2017 and additional auctions will be organised until 30 June 2021.

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European Commission approves €9.4 billion Polish support scheme for renewable energy http://biznesalert.com/european-commission-approves-e9-4-billion-polish-support-scheme-renewable-energy/ http://biznesalert.com/european-commission-approves-e9-4-billion-polish-support-scheme-renewable-energy/#respond Wed, 13 Dec 2017 12:00:40 +0000 http://biznesalert.com/?p=1217 The European Commission approved under EU State aid rules a Polish renewable energy scheme and a reduced levy to finance the scheme for energy-intensive users. This will further EU energy and climate goals and ensure the global competitiveness of energy-intensive users whilst preserving competition. Commissioner Margrethe Vestager, in charge of competition policy, said: “We want […]

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The European Commission approved under EU State aid rules a Polish renewable energy scheme and a reduced levy to finance the scheme for energy-intensive users. This will further EU energy and climate goals and ensure the global competitiveness of energy-intensive users whilst preserving competition.

Commissioner Margrethe Vestager, in charge of competition policy, said: “We want to make progress towards green energy for the sake of our environment but also for European economic growth. The Polish support scheme will increase the share of green energy in Poland’s energy mix and help the country’s energy transition. It will also preserve the global competitiveness of companies that are heavily energy dependent.”

The scheme, with a total budget of PLN 40 billion (around €9.4 billion), will grant State support to producers of electricity from renewable sources. Beneficiaries will be selected by means of competitive auctions. The first two rounds took place in December 2016 and June 2017 and additional auctions will be organised until 30 June 2021. Under the scheme:

– Small installations with a capacity of up to 500kW can benefit from a feed-in tariff.

– Installations with a capacity of more than 500kW will receive a premium on top of the market price of electricity, so that they have to respond to market signals. Beneficiaries will only receive the premium if, in the coming years, the market price of electricity is below the bidding price submitted in the auction. This premium is meant to help these facilities to compensate for costs that cannot be recovered from selling electricity in the market, and so obtain a reasonable return on investment.

The Commission assessed the scheme under EU State aid rules, in particular the Commission’s 2014 Guidelines on State Aid for Environmental Protection and Energy. These require competitive auctions for renewables support to ensure that the use of public funds is limited and there is no overcompensation. The Commission found that the Polish scheme will encourage the development of different renewable technologies, in line with the requirements of the Guidelines, and will help Poland achieve its 2020 environmental and climate change objectives. The measure will boost the share of renewable electricity produced in Poland, while any distortion of competition caused by the State support is minimised.

This renewable support scheme is financed by a surcharge levied on electricity consumers. Poland has also notified to the Commission plans to lower the financial burden on undertakings in certain energy-intensive sectors, which will benefit from a reduced surcharge. The Commission has found that these reductions are in line with the Guidelines, which allow Member States to provide reductions to undertakings in certain sectors that are particularly energy-intensive and exposed to international competition, in order to ensure their global competitiveness.

The scheme is accompanied by an evaluation plan to assess its impact. The results of this evaluation will be submitted to the Commission by December 2020.

Background

The Commission’s 2014 Guidelines on State Aid for Environmental Protection and Energy(see full text here), allow Member States to support the production of electricity from renewable energy sources (including from renewable waste) and high efficiency combined heat and power plants, subject to certain conditions. These rules are aimed at meeting the EU’s ambitious energy and climate targets at the least possible cost for taxpayers and without undue distortions of competition in the Single Market.

The Renewable Energy Directive established targets for all Member States’ shares of renewable energy sources in gross final energy consumption by 2020. For Poland, that target is 15% by 2020.

More information on today’s decision will be available, once potential confidentiality issues have been resolved, in the State aid register on the Commission’s competition website under the case number SA.43697. The State Aid Weekly e-News lists new publications of State aid decisions on the internet and in the EU Official Journal.

European Commission

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It is bad together with the capacity market and even worse without it http://biznesalert.com/bad-together-capacity-market-even-worse-without/ http://biznesalert.com/bad-together-capacity-market-even-worse-without/#respond Wed, 13 Dec 2017 10:00:44 +0000 http://biznesalert.com/?p=1209 – The cost of the capacity charge will be less than PLN 2 per month for the largest group of households. For non-household end users, the capacity charge will depend on the electricity consumption at certain hours of the day – Teresa Wójcik, editor of BiznesAlert.pl, counts. The Power Market Act has been adopted. It […]

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– The cost of the capacity charge will be less than PLN 2 per month for the largest group of households. For non-household end users, the capacity charge will depend on the electricity consumption at certain hours of the day – Teresa Wójcik, editor of BiznesAlert.pl, counts.

The Power Market Act has been adopted. It was voted yesterday by the Sejm and the document was immediately forwarded to the Senate. But the law will return to the Sejm, because also yesterday the Senate Committee on National Economy and Innovation adopted three amendments, which, as we have learned, will be examined at the 61st session of the Senate currently taking place. And according to our knowledge, they will get the majority of senatorial votes. So the Act with amendments will come back to the Sejm.

Of the three amendments, one is of more specific nature. The next two probably result from the suggestion of Brussels and should probably be combined with talks held in the European Commission by the Minister of Energy Krzysztof Tchórzewski. One applies to art. 9 of the Act (which defines the procedure for submitting an application for a certificate allowing to participate in the next main auction or in the secondary market) – the point is to ensure that the results of the initial auction are not published earlier than the results of the main auction. It is supposed to prevent discrimination of foreign powers against domestic ones. And also ensure the full transparency of the auction.

The second amendment is to introduce the distinction of price-makers and price-takers in the auction.

Costs? Unnecessary panic

From 2021, consumers will pay a capacity charge in electricity bills, in billing on the side of transmission and distribution costs. The amount of this charge will eventually be determined in practice, but the general rules allow to assess that – contrary to arguments of the opponents of the power market during the third reading in the Sejm – one should not panic. MP Wojciech Zubowski, rapporteur on the work of the Committee (PiS), emphasized yesterday in the Sejm that the cost of the capacity charge will be less than PLN 2 per month for the largest group of households. According to more precise calculations, this group includes about 3 million households. The second, smaller group of more than 1 million more wealthy households, will be charged a capacity charge of less than PLN 7 per month. Which is less than PLN 100 per year. The amount of charges for both groups will depend on the volume of electricity consumed. For non-household end users, the capacity charge will depend on the electricity consumption at certain hours of the day. This means that the capacity charge rate for these customers will be higher for energy consumption at peak demand.

For enterprises, the amount of the capacity charge was initially set at PLN 40-50 on average per MWh of electricity. So a medium-sized enterprise that consumes 50 GWh of electricity per year will incur an additional cost of several million zlotys. It should be assessed that the medium and small enterprises would be most burdened. However, this is definitely less than the losses caused, for example, by interruptions in production due to limitations or lack of energy supply. Not to mention blackout.

According to analysts, the capacity market is a much more effective solution than a cold reserve or strategic reserve. Maintaining the strategic reserve would cost end users in total in the years 2021-2040 by about PLN 35 billion more than the power market. The strategic reserve is also not an appropriate structural tool for Poland due to the short-term nature of this solution. The problem of security of energy supplies has a long-term character in Poland.

It will be worth it

According to preliminary calculations, the power market will reduce the costs of Polish consumers by approx. PLN 30 billion or PLN 1 billion a year. Although a new cost component is being created (the said capacity charge), it is compensated to the end user with a surplus by reducing the cost of undelivered energy and reducing wholesale energy prices. The analysis shows that electricity prices on the wholesale market at the introduction of the capacity market will be, by 2040, on average more than PLN 20/MWh lower than without the power market. This will be the result of lower fluctuation in energy prices and the associated lower capital costs for new investments, especially for peak sources.

The capacity market is an effective support mechanism for power plants and energy companies. Today’s energy prices on the wholesale market are so low that they do not allow to earn a loan for the construction of a new power plant, practically in any technology. The prices are pushing down, among others the RES.   Yesterday in the Sejm, deputy energy minister Grzegorz Tobiszowski warned that without the power market law ‘in two years there would be no electricity in the sockets’. It should be objectively acknowledged that the adoption of a mechanism that is the power market is the only way out for the Polish economy and energy security of the country.

The new law is supposed to guarantee the availability of suitable power resources in sources that produce electricity. Also in renewable energy sources, which results from the act, and what is usually not remembered. The power market introduces support for energy producers in the form of additional remuneration for the fact that for a time specified in the contract, especially in the event of energy shortage, with the appropriate power it will be able to provide the necessary energy. However, in the opinion of experts from the Warsaw University of Technology, the failure to implement this law is a loss for the economy of at least PLN 10 billion per annum.

Making it before the winter package

Minister of Energy Krzysztof Tchórzewski argued on Wednesday in the European Parliament in Brussels that what distinguishes the Polish law on the power market from similar projects in other countries is the fact that it is based on the auction system, and therefore it is more transparent. Tchórzewski and deputy ministers of energy in working mode met in Brussels with EU competition commissioner Margrethe Vestager, with whom they discussed the ongoing work on the power market and the restructuring of the Polish hard coal mining sector. Certain additional solutions will be introduced into the power market regulations. However, Tchórzewski negatively assessed the European Commission’s proposal that the power markets should be limited by the emission.

Work on the winter package is a strategic challenge for Poland. It is obvious that the rush of work on the power market is deeply justified – in order to fulfill the assumed goal, the act must come into force before the winter package becomes effective as a regulation of the European Union.

Tchórzewski met with the EU Commissioner for Energy and Climate Change Miguel Arias Canete in Brussels yesterday regarding the prospects for further negotiations of the winter package. The talks focused on the fundamental challenges for the Polish and EU energy sector – Minister Krzysztof Tchórzewski informed.

Tchórzewski pointed to innovative solutions proposed by Poland in the field of renewable energy. ‘It is said that we are defenders of coal energy. It is not like that – we also want to develop opportunities in the field of renewable energy. The capacity market toward RES should also serve this purpose – the minister said.

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The expansion of the Pomeranian pipeline will hit Russia. ‘It will protect against a terrorist attack’ http://biznesalert.com/expansion-pomeranian-pipeline-will-hit-russia-will-protect-terrorist-attack/ http://biznesalert.com/expansion-pomeranian-pipeline-will-hit-russia-will-protect-terrorist-attack/#respond Wed, 13 Dec 2017 09:00:45 +0000 http://biznesalert.com/?p=1207 Currently, every fifth barrel of crude oil processed at the Gdańsk Refinery comes from other direction than the East. The authorities want a further diversification and are afraid of a terrorist attack on transmission infrastructure, which is why as part of the oil policy they are planning to build the second line of the Pomeranian […]

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Currently, every fifth barrel of crude oil processed at the Gdańsk Refinery comes from other direction than the East. The authorities want a further diversification and are afraid of a terrorist attack on transmission infrastructure, which is why as part of the oil policy they are planning to build the second line of the Pomeranian pipeline – writes Wojciech Jakóbik, Editor-in-Chief at BiznesAlert.pl.

A decreasing share of Russian oil in Poland

Although Russian oil is still significant for Polish PKN Orlen and Grupa Lotos companies, the importance of supplies from outside of Russia through the Gdańsk Refinery is growing.

In 2015, oil exports from Russia to Poland accounted for around 10 percent of sales in general. Out of ca. 240 million tons of exported raw material, almost 26.5 million tons was sent to the Polish market. However, diversification reduces the share of Russian oil in Poland. The crude oil supplies to Poland increased from 7.4 million tones in 2011 to 10.8 million in 2015.

In August, Reuters reported that Poland wants to replace oil supplies from Russia with importing a similar type from the Middle East. Deliveries of the Iranian raw material for Grupa Lotos reduced the share of Russian Mercuria in the Gdańsk Refinery, although the Poles declare interest in further cooperation. The argument for reduction of supplies from Russia is the plan of lowering of oil quality sent to the European market in 2018 undertaken by the Russian Transneft due to the desire to compete more effectively for the Chinese market, as Andrzej Kublik from Gazeta Wyborcza wrote.

Two oil deliveries from Iran were brought by PKN Orlen. Last year, it signed a contract with Saudi Aramco for the purchase of 200 000 million tones (mt) a month for refineries in Poland, Lithuania and the Czech Republic. Although Reuters argues that the diversification will be mainly based on oil from Iran, it is more difficult due to the country’s bad relations with the US. As BiznesAlert.pl previously informed, Washington’s objection to further opening to Iran may limit Poland’s ambition in scope of import from this direction.

Grupa Lotos also buys oil from the USA. Another tanker with the American WTI is already sailing to Gdańsk. – This is the second transport from the United States for the Gdańsk concern, but not the first from the American continent. In November, the company imported 600,000 DSW oil barrels (Domestic Sweet) from the USA, and in September nearly 700 000 Hibernia oil barrels from Canada – as Lotos boasts.

PKN Orlen has already bought spot deliveries from Iraq, Azerbaijan, Kazakhstan, Nigeria and Norway. – The market situation allows opening to alternative suppliers, which increases flexibility and efficiency in planning the supply of raw material within the entire Capital Group – the company informs. – Currently, the supply of the concern’s refinery is made on the basis of long-term contracts with producers – Rosneft Oil Company, Tatneft Europe AG and Saudi Aramco. PKN Orlen is technologically prepared to process over 80 different types of oil from around the world.

– The emergence of new grades of crude oil for trans-hipment in Naftoport is the result of the strategy of diversifying supplies realized by Polish refineries. On our part, we have not recorded any changes in cooperation with Mercuria or company’s fears from competition in Polish Naftoport. PERN is looking forward to cooperate with Mercuria due to, for example, previous good experiences of both parties – Igor Wasilewski, the CEO told BiznesAlert.pl.

Nevertheless, PERN confirms the new trend. In the last two years, PERN has been observing the volume growth of crude oil types other than REBCO oil, mainly the alternative to REBCO oil is the Iranian Light and Arabian Light.  In 2017, crude oil from the Middle East accounts for approx. 30 percent of marine supplies reloaded at the Naftoport terminal. In 2015, this oil accounted for about 5 percent of total marine supplies. – Such an increase clearly proves the strategy of supply diversification and the search for alternative oil types for processing mainly by Polish refiners – Wasilewski assessed.

This means that the calculations from 2015 have already changed to Russia’s disadvantage. However, one should not make any hasty conclusions thereof. Russians will remain the main supplier of crude oil to Poland for a long time, but the increased significance of competition allows us to improve the terms of contracts, which was observed in recent years in new PKN Orlen agreements with Rosneft.

Fear of a terrorist attack

On November 28th, the Council of Ministers adopted the policy of the Polish government for logistics infrastructure in the oil sector. It contains a recommendation to build the second line of the northern oil pipeline. Government Plenipotentiary for strategic energy infrastructure, Piotr Naimski, admits that this is necessary due to the further diversification of oil supplies to Poland, as well as the risk of a terrorist attack.

– We already have the possibility of supplying this refinery from Naftoport. Transmission through one line is enough for its operation. However, a second line is necessary in order to rationalize it with respecto of oil type. This will strengthen security – Piotr Naimski assessed. The minister informed that the exercises of terrorist attacks showed that the second line is necessary for this reason.

The purpose of the second line is also to prevent contamination. Until now, raw material from other directions than Russia was still mixed in the Russian oil system. – The construction of the second line of the Pomeranian pipeline, important for the energy security of the state, will enable simultaneous meeting of PKN Orlen refinery in Płock and Grupa Lotos in Gdańsk needs and will ensure the security of pumping at the time of failure – reads the government’s oil strategy.

Immortal discussion about the merger

Warsaw oil plans generate new speculations about the merger of PKN Orlen and Lotos. From the point of view of competition on the European market – with such giants as the Hungarian MOL – such a merger would improve the potential of Poles. However, it would also be difficult from the point of view of competition on the market, and therefore unacceptable by the Office of Competition and Consumer Protection (UOKiK).

So far, the government has argued that there are no preparations for the merger. However, after transferring the competences of UOKiK in the scope of concentration on the energy market to the special Energy Market Power Supervisory Commission, it may decide to allow it to assess the merger in the fuel sector. This would be a signal that the authorities may decide to merge PKN Orlen and Lotos. For now, this kind of considerations have no basis.

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Polish Briefing: There will be no reconstruction in energy and environment http://biznesalert.com/polish-briefing-will-no-reconstruction-energy-environment/ http://biznesalert.com/polish-briefing-will-no-reconstruction-energy-environment/#respond Wed, 13 Dec 2017 08:00:05 +0000 http://biznesalert.com/?p=1211 What goes on in Poland on the 13th of December. There will be no reconstruction in energy and environment. Tchórzewski and Szyszko stay After designating Mateusz Morawiecki for prime minister, president Andrzej Duda appointed new – old ministers. Krzysztof Tchórzewski and Jan Szyszko, ministers of energy and environment, will keep their positions. Despite the media […]

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What goes on in Poland on the 13th of December.

There will be no reconstruction in energy and environment. Tchórzewski and Szyszko stay

After designating Mateusz Morawiecki for prime minister, president Andrzej Duda appointed new – old ministers. Krzysztof Tchórzewski and Jan Szyszko, ministers of energy and environment, will keep their positions.

Despite the media speculations, fusion of energy and development ministries did not happen. Mateusz Morawiecki, designated for prime minister will remain the minister of finance and development.

Witold Waszczykowski, the minister of foreign affairs will keep his position, even though he was supposed to be replaced by Krzysztof Szczerski, head of president’s office.

Antoni Macierewicz will remain the minister of defense. According to media allegations, he could have been replaced by the minister of interior Mariusz Błaszczak.

Andrzej Adamczyk, the minister of construction and infrastructure will also keep his office.

Minister of maritime affairs and inland waterway transport Marek Gróbarczyk and the minister of digitalization Anna Streżyńska will keep their positions as well. Media informed that minister Streżyńska would lose her function and the ministry would be resolved. Her duties would be overtaken by the ministry of interior. These speculations did not become true.

Politics observers and media claim that the changes within the government may happen on the beginning of the next year.

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Polish Briefing: The EU can support Polish-Japanese offshore wind farms project http://biznesalert.com/polish-briefing-eu-can-support-polish-japanese-offshore-wind-farms-project/ http://biznesalert.com/polish-briefing-eu-can-support-polish-japanese-offshore-wind-farms-project/#respond Tue, 12 Dec 2017 08:00:29 +0000 http://biznesalert.com/?p=1205 What goes on in Poland on the 12th of December. The European Union can support Polish-Japanese wind farms project The EU is preparing a support for innovative energy. A Polish-Japanese project that could stabilize the development of offshore wind farms on the Baltic Sea may benefit from it. The European Commission and the European Investment […]

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What goes on in Poland on the 12th of December.

The European Union can support Polish-Japanese wind farms project

The EU is preparing a support for innovative energy. A Polish-Japanese project that could stabilize the development of offshore wind farms on the Baltic Sea may benefit from it.

The European Commission and the European Investment Bank want to support innovations in the energy sector by Innovfin Energy Demonsitration Project Facility. It will finance innovative demonstration projects, offer cooperation for evaluation and structuring of such projects. They will also support them financially and technically to improve the chances of obtaining the mains.

Finbarr O’Sullivan from the European Investment Bank named the energy banks projects and other solutions. – If you have an innovative project that will fulfill the demands and cannot find funds on the market, we can help – he assured at the Central Europe Day of Energy in Brussels under the patronage of BiznesAlert.com

Wojciech Lubczyński from PSE-Operator said more about the program. – This is a demonstration project based on the analyses of renewables’ influence on the networking system – he said. PSE project considers installing a net protection system from destabilization linked with the development of Baltic wind farms. The project launched in March 2017. It involves Japanese Hitachi and Polish Energa.

Gaz-System has three options of Baltic Pipe onshore outputs. Decision will be made until mid 2018

– Until mid 2018, Gaz System will present the final route of Baltic Pipe, through which Norwegian gas will be transported to Poland from 2022 – said Paweł Jakubowski from Gaz-System.

When asked about the entering of Baltic Pipe into Polish transmission system he said that three spots of „pipeline’s landing in Poland” (Niechorze, Rogów and Gąski) are analyzed. – The decision will be dependent on geophysical and geotechnical and environmental researches – warned Jakubowski.

– From environmental point of view it is crucial to have different options. This is why we are proving alternatives and the final choice of the route will be dependent of the undersea works. We want to have room for maneuver.

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EC’s director-general for energy: There will be funds for Poland to quit coal http://biznesalert.com/ecs-director-general-energy-will-funds-poland-quit-coal/ http://biznesalert.com/ecs-director-general-energy-will-funds-poland-quit-coal/#respond Mon, 11 Dec 2017 14:00:13 +0000 http://biznesalert.com/?p=1202 Central and Eastern European countries that want to go through energy transition, but in evolutionary way. How can the European Commission and energy community in general could help those countries adapt to the new situation? We interviewed Dominique Ristori, the director-general of the Directorate-General for Energy within the European Commission. – First of all, energy […]

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Central and Eastern European countries that want to go through energy transition, but in evolutionary way. How can the European Commission and energy community in general could help those countries adapt to the new situation? We interviewed Dominique Ristori, the director-general of the Directorate-General for Energy within the European Commission.

– First of all, energy transition is now reality, not in terms of political priority, but in reality of investors agenda. I am speaking based on facts and figures. If you are considering the global energy investments in 2016, the major part was invested in energy transition – energy efficiency, renewables, smart rate. 43 per cent in total was invested in clean energy I am thinking about global energy investment representing € 1,5 trillion – started Ristori. He pointed out that at the same time, investments in fossil fuels decreased by around 25 per cent. – In this context it is more important than revert to help Central Europe to go in this direction progressively. This should be done by opening new activities and exploiting all their big potential – Ristori continued.

He also said that the European Commission will be ready to prepare any project going in that direction, using all possible community founds for research or infrastructure. This will also require training for new skills, which is crucial. – I am confident, we will succeed – he convinced.

Conditions for receiving such help remain unknown, since the coal sector cannot be subsidized. – Many countries, not only in Europe, but also in the world are abandoning coal much more rapidly than expected. Poland for example is in a specific situation – said the French councilman. Coal is a big part of Polish energy mix. – It is important to open new activities and projects going in that direction – finished Dominique Ristori.

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Polish Briefing: What does the prime minister Morawiecki mean for energy sector? http://biznesalert.com/polish-briefing-prime-minister-morawiecki-mean-energy-sector/ http://biznesalert.com/polish-briefing-prime-minister-morawiecki-mean-energy-sector/#respond Mon, 11 Dec 2017 08:00:51 +0000 http://biznesalert.com/?p=1194 What goes on in Poland on the 11th of December. What does the prime minister Morawiecki mean for energy sector? Prime minister Beata Szydło would not talk much about energy, mainly that coal will remain the main source of energy in Polish energy mix for years. New Mateusz Morawiecki’s government will hardly bring a change. […]

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What goes on in Poland on the 11th of December.

What does the prime minister Morawiecki mean for energy sector?

Prime minister Beata Szydło would not talk much about energy, mainly that coal will remain the main source of energy in Polish energy mix for years. New Mateusz Morawiecki’s government will hardly bring a change. What has the future prime minister talked about the energy sector?

Morawiecki gives hope that he will be effective in fulfilling his anti-smog statements.

On the beginning of previous month Mateusz Morawiecki promised to implement anti-smog programs in Polish towns that are on the list of Europe’s 50 most smog-polluted towns. – In those 33 towns, we would like to propose individual programs. Large budget means will certainly be moved for fighting smog there – he said.

Future prime minister has shown some distance, but also a reasonable approach towards minister Tchórzewski’s project of the first Polish nuclear power plant, pointing potential problems and high costs, what is an experience of European nuclear power plants. Morawiecki said that he is a supporter of nuclear power, but „cheap” – in this matter it may sound good for taxpayers, but it could also cause anxiety.

How did the stock react to capacity market?

The bill on capacity market is a good news for state-owned energy companies. It was confirmed by their latest scores at the Warsaw Stock Exchange.

Thanks to the bill accepted by Sejm, the energy companies will get additional, crucial source of income, payed by individual receivers in the bills.

What is this game about? Deloitte and Energoprojekt-Katowice counted that for the first planned deliveries period – until 2022 – the cost of subsidies in this mechanism may reach PLN 4,1 billion. This money can mainly be headed to state-owned energy companies.

Better perspectives for state-owned energy companies have been noticed by stock observers, and PGE, Energa and Tauron were among those companies that gained the most at the Warsaw Stock Exchange.

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