Polish Briefing 31 December, 2018 9:00 am   
Editorial staff

Polish Briefing: Intervention in energy prices will cost PLN 9 billion

What goes on in Poland on the 31st of December.

Intervention in energy prices will cost PLN 9 billion

A bill lowering the excise duty for electricity and the transition fee to modernize the increase in energy prices in Poland went to the Sejm. It is to cost PLN 9 billion.

– The intervention will cost nine billion PLN – the energy minister revealed during the parliamentary debate on the bill. Thanks to it, households and local governments will pay less for energy, which is expected to increase in 2019.

Earlier, the Prime Minister Mateusz Morawiecki admitted that the rising price of CO2 emission rights under the emissions trading system is responsible for the increase in energy prices in Poland. It is a European Union climate policy tool which, in the Prime Minister’s opinion, has been poorly negotiated by the Platforma Obywatelska government.

Energy prices will be lower if the minister lets more wind into the market

The Polish Wind Energy Association recommends the purchase of more energy from wind farms on land in 2019, than is required by the draft ordinance of the Minister of Energy. Especially since it is today the cheapest technology of electricity production.

In 2019, the Ministry of Energy wants to contract 67,5 TWh of energy in the auction basket, among others for onshore wind farms. It will allocate PLN 23,45 billion to this. – The amount of energy offered in this basket, proposed for purchase has influence on the possibility of supporting about 1,5 GW of wind power. Meanwhile, ready-to-build projects for a total of 3 GW are available on the market. Therefore, we recommend increasing the next contract to approx. 2,5 GW – postulates Janusz Gajowiecki, president of PWEA.

Leaving the volume ordered at the proposed level will result in the loss of the potential developed for years, for which investors have already spent a total of PLN 2-3 billion. Although building permits – prolonged amendments to the Act on Renewable Energy Sources – expire only in 2021, it is much earlier, because on May 19, 2019, project connection agreements expire without the guarantee of government support. – The size of the order in the wind basket is important, as well as its execution by the end of the first quarter of 2019 at the latest – argues Gajowiecki. This approach will translate into the opportunity for the wind industry to contribute as much as possible to Poland’s RES target in 2020.