Polish government adopts renewable energy bill
April 9, 2014
Poland's government adopted the long-awaited draft law
that outlays new long-term subsidies for renewable energy, aiming to optimize costs and to meet European Union's green energy targets by limiting support for co-firing installations and big hydropower installations.
Poland generates around 90% of its electricity from coal and must increase renewable energy to at least 15% of the total by 2020 to meet EU rules on carbon emissions.
The current subsidy system will be upheld for current renewable energy installations, while installations launched by January 1, 2015 will be able to adhere to either the old or the new system, the Economy Ministry said in a statement. Installations launched or modernized beyond that date will be operating under the new subsidy system.
According to the new bill developers and owners of new renewable installations can sell their energy at auctions, held at least once a year by market regulator URE, for a fixed price that would be guaranteed for 15 years regardless of market prices.
At least 25% of the volume of renewable energy purchased at auctions shall come from installations of installed power of up to 1 MW, the statement reads.
Without the proposed changes, the current subsidy system might cost PLN 4.6-6.2 billion in 2015 and PLN 7.5-11.5 billion in 2020, the statement showed.
According to the bill, the cost the current subsidy system will amount to PLN 3.7-3.8 billion in 2015 and PLN 4.0-4.3 billion in 2020.