BiznesAlert EN https://biznesalert.com ENERGY INFRASTRUCTURE ENVIRONMENT Thu, 21 Mar 2019 15:00:50 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.10 Merkel: Climate cabinet to ensure Climate Action Law comes before end of year https://biznesalert.com/merkel-climate-action-law-germany/ https://biznesalert.com/merkel-climate-action-law-germany/#respond Thu, 21 Mar 2019 15:00:50 +0000 http://biznesalert.com/?p=3124 The new ‘climate cabinet’ consisting of ministers responsible for Germany’s emissions reduction record will help to make sure that the country introduces its much-awaited Climate Action Law still in 2019, Chancellor Angela Merkel has promised. Environment minister Svenja Schulze will be largely in charge of the cabinet that aims to resolve differences with her ministerial […]

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The new ‘climate cabinet’ consisting of ministers responsible for Germany’s emissions reduction record will help to make sure that the country introduces its much-awaited Climate Action Law still in 2019, Chancellor Angela Merkel has promised. Environment minister Svenja Schulze will be largely in charge of the cabinet that aims to resolve differences with her ministerial colleagues regarding financial and legal repsonsibilites for missing climate targets in sectors like transport or heating. Observers are hopeful that the new cross-ministry group will help Germany to make progress on difficult climate policy decisions but also say it shows that standard procedures no longer work.

Germany’s new climate cabinet will ensure that the much-anticipated Climate Action Law is introduced still this year, Chancellor Angela Merkel said at a conference in Berlin. “We will introduce a Climate Action Law, or several laws, before the end of the year,” Merkel said, adding that the transport sector in particular needed a lot of attention. The chancellor will lead the new cabinet, with environment minister Svenja Schulze acting as its “commissioned chair,” according to a press release. The new cabinet would mean decisions on climate action are now taken “at the highest level,” bringing together the ministers in charge of all policy areas affected by emissions reduction to speed up decision making, the government said.

“For too long, environment ministers have taken sole responsibility within federal government for climate action in Germany,” Schulze said in an article published by Deutsche Welle. Now, the climate cabinet “is a clear sign that the whole government is responsible.” Finance minister Olaf Scholz said the cabinet would “make concrete proposals that will make a real difference.” Earlier this week, Merkel warned that “tough decisions” would have to be made soon to reduce emissions.

A spokesperson told Clean Energy Wire that Germany’s environment ministry (BMU) would prepare the climate cabinet’s work in close cooperation with Merkel’s chancellery. Merkel’s office would also call its meetings directly. “This usually provokes a more swift response than an invitation by the BMU alone,” the spokesperson said. He added that there was no clear timetable for the cabinet yet, but to introduce the Climate Action Law this year it would have to act fast. “In any case, there will still be plenty to talk about after 2019.”

Germany’s climate targets require the country to cut greenhouse gas emissions by at least 55 percent by 2030, compared to 1990 levels, and by 80 to 95 percent by 2050. In its coalition treaty, the government promised to make the sector targets for the year 2030 laid out in the Climate Action Plan 2050 – a government policy programme – legally binding.

Alongside Schulze and Merkel, the cabinet will include finance minister Scholz, transport minister Andreas Scheuer, agriculture minister Julia Klöckner, economy minister Peter Altmaier, interior minister Horst Seehofer, government spokesman Steffen Seibert and chancellery chief Helge Braun. “Other members of the government may be invited if their field of expertise is relevant,” the official statement says.

Cabinet is act of good will but shows old mechanisms don’t work any longer

Besides stubbornly high emissions from transport, Germany will have to act fast to curb CO2 emissions in the buildings sector. A commission akin to Germany’s coal exit commission has already been set up for the transport sector. After making headlines due to intense dispute between its members, the group are expected to deliver first results by the end of March. A similar body for the buildings sector has not been set up.

Pressure on Germany to ramp up emissions reduction measures also comes from the EU. For the first time, Germany’s budget includes 300 million euros set aside to pay the financial penalties it is expected to incur by 2022, for failing to meet EU’s CO2 targets for sectors not covered by the emissions trading system (ETS), including buildings and transport. The exact sum will only be decided once Germany’s emissions have been calculated, which will take another two years, but it is virtually certain Germany will be in breach of emissions limits.

According to German daily Handelsblatt, the climate cabinet is a sign that government is willing to act “with greater determination” to cut emissions. However, it also shows that the government is unable, or unwilling, to resolve internal differences over climate policy through standard procedures.

According to Germany’s local utility association VKU, the cabinet should focus on the transport and buildings, introducing a carbon price for these sectors. The compromise over Germany’s coal exit, brokered by a government-appointed commission, has produced tangible results for the energy sector, the VKU said. “Now we also have to find instruments to reduce emissions from transport and heating,” said VKU head Katherina Reiche.

Green Party head Annalena Baerbock warned against the climate cabinet becoming a “talking shop” that stalls for time. Rather, it must introduce the Climate Action Law soon, together with binding mechanisms that ensure reduction targets are met. “It’s all on the table already,” she said on Twitter.

Source: Clean Energy Wire

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PGNiG: Stable increase in 2018 despite fluctuations in energy markets https://biznesalert.com/pgnig-results-2018-energy-markets/ https://biznesalert.com/pgnig-results-2018-energy-markets/#respond Thu, 21 Mar 2019 10:00:45 +0000 http://biznesalert.com/?p=3112 In 2018, the PGNiG Group’s net profit amounted to PLN 3.2bn and rose by 10 percent. EBITDA amounted to PLN 7.1bn and rose by 8 percent y/y. EBIT was up 12 percent, to nearly PLN 4.4bn. The Group’s revenue grew to PLN 41.23bn,up by 16 percent y/y. “2018 was a great year for the Group, […]

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In 2018, the PGNiG Group’s net profit amounted to PLN 3.2bn and rose by 10 percent. EBITDA amounted to PLN 7.1bn and rose by 8 percent y/y. EBIT was up 12 percent, to nearly PLN 4.4bn. The Group’s revenue grew to PLN 41.23bn,up by 16 percent y/y.

“2018 was a great year for the Group, marked by a strong performance. Growth in revenue from oil sales was largely driven by rising oil prices and increased demand for crude, while revenue from gas sales rose mainly on the back of an upward price trend on the Polish Power Exchange,” said Piotr Woźniak, President of the Management Board of PGNIG S.A. “In 2018, our gas sales went up by more than 2.26 bcm, or 8 percent year on year”, he added.

Driven by growing oil and gas prices, sales of the Exploration and Production segment rose by 25 percent, to PLN 7.67bn, with EBITDA up 30 percent.

“We increased CAPEX in the Exploration and Production segment. Supported by state-of-the-art exploration technologies, we achieved a high success rate in drilling for hydrocarbons. With stepped up exploration efforts, new expenditure on production from existing fields and optimised field development times, the Group was able to maintain its overall natural gas output at 4.55 bcm (Poland, Norway, Pakistan). Our crude oil production in Poland and Norway expanded by 4 percent and 12 percent, respectively. By continuing asset acquisitions on the Norwegian Continental Shelf, we will steadily increase production from our own sources to the target level set in our Strategy”, said Piotr Woźniak.

The volume of gas sales in the Trade and Storage segment altogether rose by 8 percent, to 28.16 bcm, with revenue up 19 percent, to PLN 31.70bn. While in the Exploration and Production segment higher crude oil prices are a performance driver, for Trade and Storage they translate into higher costs of gas imports.

The Distribution segment’s revenue and volumes of distributed gas remained largely flat on 2017, despite a reduction in the distribution tariff rates effective from March 2018. In 2018, the number of new grid connections was 60,750, up 10.6 percent versus 54,922 new connections in 2017.

The Generation segment’s revenue, mainly from heat and electricity sales, grew 6 percent, to PLN 2.39bn. The segment’s performance was supported by increased electricity prices, offset by higher temperatures in the second half of 2018 and coal price levels. In 2018, a new multi-fuel unit at the Zofiówka CHP Plant, with a capacity of 70 MWe and 120 MWt, was brought on stream.

Major events in 2018:

– The Arbitration Institute of the Stockholm Chamber of Commerce rendered a partial award in favour of PGNiG in its price dispute with Gazprom. According to a ruling by the arbitration court, the contractual conditions for PGNiG to demand a reduction in the price of gas supplied to Poland under the Yamal contract were met.

– Long-term contracts for LNG supplies from the US were signed with Venture Global LNG, Cheniere Marketing International and Port Arthur LNG. The total volume of natural gas to be supplied only under those contracts will amount to more than 7 bcm (when regasified) after 2023, and together with contracts with Qatargas – will exceed 10 bcm.

– Revitalisation of the Przemyśl field – new gas discoveries made in the field using latest technologies are estimated at close to 20 bcm.

– The Norwegian Ministry of Petroleum and Energy approved the development plans for the Ærfugl and Skogul fields, in which PGNiG Upstream Norway holds interests. Production is scheduled to commence in 2020.

-PGNiG Upstream Norway AS acquired an over 42 percent interest in the Tommeliten Alpha field. The new asset will result in an additional 0.5 bcm increase in the PGNiG Group’s gas output from the Norwegian Continental Shelf. Production is scheduled to commence in 2024.

– PGNiG was awarded a hydrocarbon exploration, appraisal and production licence in a tendering procedure held in Ras Al Khaimah, the United Arab Emirates.

PGNiG

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Polish Briefing: The dispute over the capacity market in Poland will not be resolved quickly https://biznesalert.com/poland-capacity-market-cjeu-tempus/ https://biznesalert.com/poland-capacity-market-cjeu-tempus/#respond Thu, 21 Mar 2019 08:00:21 +0000 http://biznesalert.com/?p=3120 What goes on in Poland on the 21st of March. Grzyb: The dispute over the capacity market in Poland will not be resolved quickly Last week, the British company Tempus announced the appeal to the Court of First Instance in the Court of Justice of the European Union (CJEU) of the decision of the European […]

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What goes on in Poland on the 21st of March.

Grzyb: The dispute over the capacity market in Poland will not be resolved quickly

Last week, the British company Tempus announced the appeal to the Court of First Instance in the Court of Justice of the European Union (CJEU) of the decision of the European Commission approving the capacity market in Poland. In an interview with BiznesAlert.pl a Member of the European Parliament, Andrzej Grzyb, argues that this is a threat to the power mechanism used in our country, so it is worth examining a similar solution regarding Great Britain in detail.

According to the British Tempus Energy company, the Polish capacity market favors coal and gas generation, discriminating against limiting energy on demand (DSR). According to Tempus, were allowed to enter the Polish capacity market. At the same time, they can obtain only one-year contracts, which in Tempus’ opinion is discriminatory, and the largest and and fossil fuel generation receives the largest profits. The proceedings are now pending before the Court of First Instance. In the past, the British company became famous, among others because it blocked the capacity market in the UK.

– In the case of the United Kingdom, the proceedings before the Court of First Instance of the CJEU lasted almost four years. It can not be ruled out that this will also be the case in Poland. However, if the appeal proceedings in the CJEU in the British case had ended earlier, its resolution would affect the final decision of the Court of First Instance. It may turn out that the Polish capacity market will not suffer as a result. However, if the CJEU confirms the decision of the Court of First Instance, a similar situation may occur as in the British market – said MP Grzyb.

In his opinion, until there is a decision of the Court of First Instance, there will be no need to suspend the provisions regarding the Polish capacity market. – You can always appeal from the judgment of the Court of First Instance, as the European Commission has done on the British issue – said the interlocutor of BiznesAlert.pl. He added that for the time being there is no full access to the application submitted by Tempus.

According to the assumptions, the capacity market is to provide financial support for energy companies that will receive them for their readiness to deliver and provide power supplies when there are power balance problems. The energy consumers who will thus contribute to investments in the energy sector will pay for this readiness. The auction is won by those units that offer the lowest cost of delivery. At the same time, their technological neutrality is an important criterion of the capacity market. Capacity contracts are granted for a year, 5 and 15 years, respectively. In the first case, they relate to existing installations, in the remaining respectively: modernized and new units.

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PGNiG: “Digital Field” will boost the efficiency of oil and gas production https://biznesalert.com/pgnig-digital-field-oil-gas-production/ https://biznesalert.com/pgnig-digital-field-oil-gas-production/#respond Wed, 20 Mar 2019 10:00:18 +0000 http://biznesalert.com/?p=3110 Polskie Górnictwo Naftowe i Gazownictwo has developed the Integrated Field Management System which will optimise the Company’s production activities. In addition to improving operational and financial performance at home, the new tool will support PGNiG’s expansion into foreign markets. The exploration and production process involves, among others, geologists, reservoir and production engineers and economists. In […]

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Polskie Górnictwo Naftowe i Gazownictwo has developed the Integrated Field Management System which will optimise the Company’s production activities. In addition to improving operational and financial performance at home, the new tool will support PGNiG’s expansion into foreign markets.

The exploration and production process involves, among others, geologists, reservoir and production engineers and economists. In each of these areas, different software and data sets are used, which hinders smooth collaboration. These difficulties are solved by the “Digital Field” platform, which integrates the results of the work of specialists from different disciplines into a single reservoir model. Such a model, covering the entire production process, allows, among other things, to simulate different extraction scenarios from several fields at the same time, increase the accuracy of forecasts, optimise the drilling program, analyse the effects of planned investments (CAPEX) while optimizing energy consumption (OPEX) and supply chains.

‘”Digital Filed” is a tool that will enable PGNiG to use its oil and gas resources even more efficiently. Integrated deposit management at the exploration, exploitation and investment stage will contribute to improved recovery and extended field life while keeping down production costs and ensuring better return on investment in production’ explains Piotr Woźniak, President of the Management Board of PGNiG SA.

The benefits of the system are demonstrated by the results of a pilot implemented at the Załęcze field, which has been in production for over 40 years. PGNiG used the tool to analyse various scenarios for gas field upgrading. This allowed for the selection of the optimum investment option, which resulted in an increase in the estimated recovery from the field by 800 million m3 of natural gas. In turn, the increase in the expected production volume translated into an improvement in the economic efficiency of the investment itself as the NPV (net present value) in the option selected with the aid of the “Digital Field” is over 200% higher than for an investment designed in a traditional manner.

PGNiG’s representatives stress that the effects of system implementation will vary from field to field, but in each case the application of the platform will lead to the selection of the best deposit management strategy and optimisation of its production parameters.

‘Poland is not particularly rich in hydrocarbons, which is why we must make good use of the resources at our disposal’ says Piotr Woźniak. ‘Moreover, this is a global trend, which is also visible in places where oil and gas are abundant. Therefore, the “Digital Field” will also help us in the implementation of our oversees endeavours, as we combine our knowledge and experience with a modern tool that increases the attractiveness of PGNiG as a partner in concessions.’

Ultimately, the “Digital Field” platform will be used for production management in all the PGNiG Group’s exploration and production projects at home and abroad. However, the priority is Poland where the Company operates on over 2000 wells at more than 200 fields. The next stage of implementation will be the construction of an Integrated Database, compatible with the system, gathering all geophysical, geological, mining and financial information related to production activities. The database will significantly shorten the average time of data acquisition needed to create reservoir models. PGNiG is currently working on a pilot version of the system integrated with a database.

PGNiG

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Why the Yamal contract should not be prolonged https://biznesalert.com/poland-pgnig-yamal-contract-gazprom/ https://biznesalert.com/poland-pgnig-yamal-contract-gazprom/#respond Wed, 20 Mar 2019 09:00:13 +0000 http://biznesalert.com/?p=3118 PGNiG will announce the future of the Yamal contract this year. Why should it not be prolonged? – writes Wojciech Jakóbik, editor-in-chief of BiznesAlert.pl. PGNiG deputy president Maciej Woźniak said that the decision about the future of the Yamal contract must be made this year. He revealed that, as previously announced, the company will present […]

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PGNiG will announce the future of the Yamal contract this year. Why should it not be prolonged? – writes Wojciech Jakóbik, editor-in-chief of BiznesAlert.pl.

PGNiG deputy president Maciej Woźniak said that the decision about the future of the Yamal contract must be made this year. He revealed that, as previously announced, the company will present its decision “with an indication” not to extend the contract.

There is no return to the past. One can imagine a scenario in which the Russians will want to stop their participation on the Polish gas market, where they transport about 8 billion cubic meters of natural gas annually, tempting PGNiG with a discount offer under the Yamal contract. This would be a move analogous to that made in Ukraine, where they tempt Naftogaz with the prospect of cuts, which would be welcomed by the electorate experienced by gas price increases as a result of the reform in line with European regulations.

The offer, however, has a hidden hook. Ukrainians would have to negotiate without the European Commission’s renewal of an existing contract that would not be in line with EU legislation, and therefore would not contain provisions protecting against the abuse of Gazprom and would maintain controversial clauses on destination rejection or with a minimum mandatory volume (take or pay). The same would probably happen to Poles who, in exchange for a lower price of gas, would receive a number of other records from the previous era, which are included in the Yamal contract. Although the offer would tempt the voters and could appear, for example, before the parliamentary elections in 2019, it is good to suppress the appetite.

This does not mean, however, that Russian gas will not reach Poland after the end of the Yamal contract expiring in 2022. It is possible to conclude a new contract, under different conditions, which would probably be better, and the contract could be adapted to European regulations. If necessary. PGNiG intends to minimize purchases from Russia until 2022, and then perhaps even replace them with imports from other directions: from Norway, the USA and others. Freedom of choice sanctioned by infrastructure – LNG terminal and Baltic Pipe – will allow to reach for the best offer.

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Polish Briefing: Baltic Pipe will give Poland independence and fuel for energy transformation https://biznesalert.com/baltic-pipe-poland-independence-fuel-energy/ https://biznesalert.com/baltic-pipe-poland-independence-fuel-energy/#respond Wed, 20 Mar 2019 08:00:56 +0000 http://biznesalert.com/?p=3116 What goes on in Poland on the 20th of March. Mościcka-Dendys: Baltic Pipe will give Poland independence and fuel for energy transformation We do not want to completely exclude Gazprom from the market. Diversification projects are supposed to deprive it of the monopolist status it currently has. The Polish-Danish-Norwegian project of the Baltic Pipe gas […]

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What goes on in Poland on the 20th of March.

Mościcka-Dendys: Baltic Pipe will give Poland independence and fuel for energy transformation

We do not want to completely exclude Gazprom from the market. Diversification projects are supposed to deprive it of the monopolist status it currently has. The Polish-Danish-Norwegian project of the Baltic Pipe gas corridor will increase our independence from one supplier – said the Polish ambassador to Denmark, Henryka Mościcka-Dendys in a conversation with Danish daily Politiken.

She stressed that there were reasons to conclude an agreement on the Danish-Polish distribution of waters around Bornholm other than just security policy. It may pave the Polish way to gas independence from Russia.

In her opinion, the conclusion of a final agreement shows that Denmark, like Poland, is a member of the European family and it is only a confirmation of good mutual relations and intentions.

When asked why Baltic Pipe is so important for Poland, she said that her country is often perceived by Denmark as dependent on “black” coal energy. – Before we become a truly green state, we need a transition period in which we will be able to withdraw coal and become more eco-friendly. For that to happen, we also need more gas – added Mościcka-Dendys.

She stated that Baltic Pipe would increase Poland’s independence from one supplier. – Our main goal is to become independent of Russian gas. The current agreement with Russia expires in 2022 and we hope that work will start a gas connection with Norway at that time – she stated.

When asked why Poland does not want Russian gas, she said she wanted to develop the market. – Today, Russia is a gas monopoly. Gazprom’s behavior is a problem. Thanks to the new combination, we will not find ourselves in a situation where we could be subjected to some form of pressure – said the ambassador. She added that it was about the possibility of influencing the country’s policy with the use of gas. – We do not want to test this threat. Poland has always said that it is pragmatic, but that does not mean that we have to be naïve – she emphasized.

Asked whether Europe should completely refrain from buying Russian gas, she said the aim is not to exclude Gazprom from the market, but to deprive it of monopoly status. – There must be a common agreement. To build them, EU countries must work together. Today there is no free competition on the gas market – she concluded.

Speaking of Polish-Danish cooperation, she ensured that the operators of the gas transmission network Gaz-System and Energinet.dk cooperate well with each other. – I am impressed by how effectively this cooperation works – she concluded.

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Will Poland convince Germany to the Orlen-Lotos merger? https://biznesalert.com/poland-germany-orlen-lotos-merger/ https://biznesalert.com/poland-germany-orlen-lotos-merger/#respond Tue, 19 Mar 2019 09:00:49 +0000 http://biznesalert.com/?p=3106 The Polish-German Economic Forum in Berlin began. This is an opportunity to talk about energy, but also about the great merger of PKN Orlen with Grupa Lotos – Wojciech Jakóbik, editor-in-chief of BiznesAlert.pl writes. In November 201, PKN Orlen submitted a draft of the application for notification of concentration in connection with the planned takeover […]

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The Polish-German Economic Forum in Berlin began. This is an opportunity to talk about energy, but also about the great merger of PKN Orlen with Grupa Lotos – Wojciech Jakóbik, editor-in-chief of BiznesAlert.pl writes.

In November 201, PKN Orlen submitted a draft of the application for notification of concentration in connection with the planned takeover of capital controls by the Płock company over the Lotos Group to the European Commission. Nothing has changed since then. Our interlocutors in both companies admit that the price for the consent of the European Commission for concentration in the form of merger of Grupa Lotos with PKN Orlen may be the sale of part of the stations. We have already written in BiznesAlert.pl about possible consequences, i.e. for example entering the competition, like the Hungarian MOL, on the Polish market.

Poland can gain allies for the merger plan. France and Germany have presented a proposal for a new economic policy of the European Union, which will treat competition principles with greater indulgence. It is supposed to reward the creation of European champions capable of fighting on the global market, for example with competition from China, even at the cost of a drop in competition in the European Union.

– Very important discussions are underway in France, Germany and the European Commission. Today, between Poland and the European Commission, there is a discussion on the merger of two major players from the fuel industry (PKN Orlen and Grupa Lotos – ed.). This is happening on the margins of discussions about the architecture of competition policy in the European Union. The competitiveness conditions created at the end of the 1980s may be inadequate to contemporary realities – said  the minister of enterprise and technology Jadwiga Emilewicz, who will co-host the Forum in Berlin with the Minister of Economy and Energy, Peter Altmaier.

The representative of the Polish government admits that Warsaw can support these proposals, because they fit perfectly into the plan of merging Orlen with Lotos, which could fight not only for Central and Eastern Europe, but more globally thanks to the combined potential, even in the upstream sector. Such a giant, for example in cooperation with PGNiG, would have a different position in the battle for mining licenses in Norway. The support of Germany (and France?) can convince the Commission to support the Polish idea of ​​a merger under better conditions. An opportunity for further discussions on this subject may be the Polish-German Economic Forum, about which we heard for the first time from the German ambassador in Poland in an interview for BiznesAlert.pl.

Minister Emilewicz, when asked about Poland’s support for the concept of building European champions presented by France and Germany, replied: “We are seriously discussing this topic. Talk about competitiveness on the European market should concern access to markets. Our visit to Berlin will be accompanied by the publication of a report prepared by us for the last few months, in which we identified non-tariff barriers on the German market, through which Polish entrepreneurs can not export or can not set up a business in Germany.

Therefore, the Poles intend to bargain in Berlin for access of Polish companies to the German market. This will help the report of the Center for Eastern Studies and the Jagiellonian Club on the potential of cooperation between Poland and Germany, which will be presented at the Forum. The event is to be cyclical and that is very good, because despite the dispute over Nord Stream 2, in which we do not find a common language, we are doomed to cooperate in the economy. Poland is Germany’s bigger trading partner than even Russia. In addition, Poles do not make such surprises to Germans, such as the launch of Siemens turbines, which instead of in the Russian Federation, found themselves in the occupied Crimea, and on the day of the Polish-German conference officially launched by President Vladimir Putin.

The Ministry of Entrepreneurship and Technology states that the purpose of the meeting is to support the cooperation of the Weimar Triangle for the promotion of solutions for Polish, German and French companies in the field of new technologies, as well as the construction of a European consortium of batteries for electric cars. So there is something to fight for. I keep my fingers crossed for the success of the conference in Berlin.

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Polish Briefing: The prosecutor’s office will examine the concentration on the energy market https://biznesalert.com/maciej-bando-energy-regulatory-office/ https://biznesalert.com/maciej-bando-energy-regulatory-office/#respond Tue, 19 Mar 2019 08:00:35 +0000 http://biznesalert.com/?p=3108 What goes on in Poland on the 19th of March. The prosecutor’s office will examine the concentration on the energy market President of the Energy Regulatory Office is leaving his position in June this year. For a goodbye he directed a critical commentary on the energy market in Poland to the participants of the Energy […]

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What goes on in Poland on the 19th of March.

The prosecutor’s office will examine the concentration on the energy market

President of the Energy Regulatory Office is leaving his position in June this year. For a goodbye he directed a critical commentary on the energy market in Poland to the participants of the Energy Economy Forum under the patronage of BiznesAlert.pl. He informed that the prosecutor’s office will concentrate on the energy market in Poland.

– Welcome to one of my last conferences. I decided to come and say goodbye to you – said the president of the Energy Regulatory Office, Maciej Bando. He recognized the topic of the panel in which he took part for the unfortunate. It was about the capacity market, that is the mechanism of support for production capacities in the country, for which the decision of the European Commission has been questioned by Tempus Energy at the European Court of Justice. The ECJ has in the past relied on Tempus Energy’s complaint against the decision on the British capacity market.

– The capacity market project in Poland is needed in order to generate incentives for investors, it was to be an opportunity for investments in production sources to be returned. There were suggestions that if the energy already costs as much as PLN 300 / MWh, the capacity market is not needed. Yes and no – convinced the guest of the conference in Krakow. – There were cases on the energy market that prompted ERO to conduct research. After a few months we have the impression that it is possible to manipulate prices. We notified the prosecutor’s office who a few days ago announced that the case was accepted – revealed Bando.

– We estimated the real price at 240 PLN / MWh (the original obligation), and everything that happens to it then is putting off the margin. If we recall the assumptions of the capacity market, the numbers resulting from the Regulatory Impact Assessment were falling. We have a 20% increase in the budget over what was planned. The price could have been estimated with much greater accuracy – said Bando.

The results of the auction show that the goal has not been achieved. New projects have practically never appeared, but these giants have again appeared. The data from Polskie Sieci Elektroenergetyczne show that the auctions were held by one entity. You can ask yourself whether I was wrong in using the word played: played in the name of the principles of mathematics, there is one entity, and then a long, long time – continued Maciej Bando. – What is the capacity market for, if only one entity is taking part? We’ve benn working for 20 years to create a market. In fact, it seems that this part of the market construction will be unnecessary. The activity of the office, which has a great tradition, is marginalized.

Asked whether it was possible to prevent the domination of one electricity company, Maciej Bando did not want to give a definite answer. It is necessary to start with the fact that the Ministry of Energy works for energy groups. That’s how it builds the law to make it good for companies. We have 70 percent concentration in production, so it was 30 years ago – the President was alarming.

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Polish Briefing: 20 years ago Russia was a potential threat to NATO, now it’s real https://biznesalert.com/malecki-poland-20-years-nato-russia/ https://biznesalert.com/malecki-poland-20-years-nato-russia/#respond Mon, 18 Mar 2019 08:00:55 +0000 http://biznesalert.com/?p=3104 What goes on in Poland on the 18th of March. 20 years ago Russia was a potential threat to NATO, now it’s real Twenty years ago, when Poland entered NATO, the threats were different than those present. At that time, Russia was a potential threat, but it becomes a real one, for which one must […]

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What goes on in Poland on the 18th of March.

20 years ago Russia was a potential threat to NATO, now it’s real

Twenty years ago, when Poland entered NATO, the threats were different than those present. At that time, Russia was a potential threat, but it becomes a real one, for which one must be ready – Grzegorz Małecki, former head of the Foreign Intelligence Agency, and now president of the Foundation of the Institute of Security and Strategy told the BiznesAlert.pl portal.

– The fact that Russia is a serious threat today can be seen on the example of events of the last decade, such as the war in Georgia or the illegal annexation of Crimea and the support of separatists in the Ukraine. Putin’s Russia is a different Russia than Yeltsin’s. The Kremlin has broadened the spectrum of influence and refined its impact tools. One of the areas of Russia’s confrontation with the west has been access to energy resources. It causes that in the whole strategy of the North Atlantic Alliance, security begins to be understood much more broadly and becomes more complex. Energy security has become a component of NATO security as a whole – said Colonel Grzegorz Małecki.

There is no doubt that by purchasing raw materials, oil, gas or coal from Russia, we co-finance its arms expenses. Their goal is, in turn, building military capabilities, based on the assumption that NATO countries are a potential threat. – Currently, there is no golden measure that would allow ruling out support for Russian arms by purchasing raw materials. The only currently known action that helps to neutralize threats in the energy sector from Russia is diversification, and thus becoming independent from energy supplies from one direction. Many Western countries, such as Spain and Portugal, can be examples of how to conduct a sustainable energy policy. It involves the supply of energy from more than one direction. We can not completely cut off supplies from Russia today, but we can reduce our dependence on it, especially as we agree that Moscow is a dubious business partner for us – said Małecki.

Asked how to consider NATO security in the context of diversification, he said that the Alliance understands that as a defense structure it must secure energy supplies for troops that are necessary to conduct military operations. This involves the development of infrastructure that gives security to NATO member countries.

Artykuł Polish Briefing: 20 years ago Russia was a potential threat to NATO, now it’s real pochodzi z serwisu BiznesAlert EN.

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PKEE: Tempus Energy action against Polish capacity market has no legal grounds https://biznesalert.com/pkee-tempus-legal-against-polish-capacity-market-has-no-legal-grounds/ https://biznesalert.com/pkee-tempus-legal-against-polish-capacity-market-has-no-legal-grounds/#respond Fri, 15 Mar 2019 17:30:25 +0000 http://biznesalert.com/?p=3100 The comment of the Polish Electricity Association on the Tempus Legal Action against the Polish Capacity Market. According to the recent news, the Tempus Energy has brought to the Court a legal action against the Polish Capacity Market. As far as the main pleas are not publicly available yet, we may assume on the basis […]

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The comment of the Polish Electricity Association on the Tempus Legal Action against the Polish Capacity Market.

According to the recent news, the Tempus Energy has brought to the Court a legal action against the Polish Capacity Market. As far as the main pleas are not publicly available yet, we may assume on the basis of the Tempus’ press release that the two main concerns regarding the Polish Capacity Market are: 1) one year contracts for DSR customers and; 2) the lack of a formal investigation (a second phase of the capacity mechanism assessment).

However, it should be borne in mind that the Polish CRM was designed taking the UK case into account,  therefore the DSR customers are eligible under the Polish Capacity Mechanism to receive up to a five years contract, which means that this plea has no legal grounds under the Polish Capacity Mechanism scheme. Polish Capacity Mechanism is based on a technology neutrality principle, open to cross-border participation and based on auctions to provide the consumers with the lowest prices.

The decision granting the Polish Capacity Mechanism is based on an individual notification procedure, which may not be ex-ante equalized to the UK-case. Therefore, we do not see any reliable grounds for the successful action against the Polish Capacity Market.

PKEE

Artykuł PKEE: Tempus Energy action against Polish capacity market has no legal grounds pochodzi z serwisu BiznesAlert EN.

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