Country policy assessment report on Bioenergy

Transcription

1 Bioenergy Promotion A Baltic Sea Region project WP3 Policy Task 3.3 Country policy assessment report on Bioenergy POLAND

2 Table of contents: 1. Status of bioenergy use and biomass potential Biomass situation in Poland Biomass supply in Poland Bioenergy strategies, targets and action plans The Polish Energy Policy until Polish National Renewable Energy Action Plan National Renewable Energy Action Plan - Main Provisions Policies promoting sustainable production and use of bioenergy Policy needs and recommendations Positive developments and key opportunities of bioenergy production and use for sustainable development? Undesirable developments and risks of increased bioenergy production and use for sustainable development Policy needs and recommendations

3 1. Status of bioenergy use and biomass potential 1.1. Biomass situation in Poland The role of bioenergy and Renewable Energy Sources haios been increasing in Poland since the European Directives were implemented. In order to meet European Directives 2001/77/EC and 2003/30/EC the effects are continually monitored by Ministry of Economy and the other institutions connected to the bioenergy sector. According to Polish Economic Chamber of Renewable Energy (PIGEO), the share of gross consumption of energy from renewable sources (from all sectors) in the gross final consumption of energy reached in 2010 the level of approx. 8%. The estimation was at the level of 7 %. [Source: Ministry of Economics]. 1. This share consists of renewable energy consumption of approx. 60 TWh (approx ktoe) with the total gross final consumption of energy of approx. 65 thousand ktoe (approx. 750 TWh). The statistics of previous years showed that in principle, in the last decade, no significant increase in renewable energy share in the gross final consumption of energy was recorded, in contrast to an increase in the share of primary energy in the structure of total use of primary energy contained in carriers and used in power industry. To compare data from 2007 presented Ch. 1 Total production of primary energy in 2007 & Ch. 2 Total energy consumption in Chart: 1. Chart: 2. Total production of primary energy in 2007 = 3094 (PJ) Primary energy consumption in 2007 = 4, 124 (PJ) Lignite 17% RES 8% Gas 5% Oil 1% Lignite; Gas; 12,20% 12,50% RES; 5,60% Hard Coal; 49% Hard coal 70% Oil; 20,60% Source: Frost & Sullivan, Polish Information and Foreign Investment Agency: White Paper, The Renewable Energy Sector in Poland, Warsaw 2008 p.4 Total production of primary energy: 3094 (PJ) (thereof renewable energy: 6,4 in %) Primary production of renewable energy: 209 (PJ) (thereof biomass and waste: 7,7 in %) Final energy consumption: 4129 (PJ) RES (biomass) shares of final energy consumption 5,60: (in %) 3

4 Table: 1. Final energy consumption from RES in different sub-sectors in 2009 and 2010 Energy from RES in different sub-sectors 2009 [TJ] 2010 [TJ] 2009 [ktoe] 2010 [ktoe] Heating/cooling Electricity Transport Total Source: Main Statistical Office (GUS) 2010 Table: 2. Final energy demand from renewable energy sources [PJ] Table 4. Final energy demand from renewable energy sources [PJ] 2006 Electricity Solid biomass Biogas Wind energy Water Photovoltaic ,004 0,05 0,09 Heat Solid biomass Biogas Geothermy Sun Transport fuels Bioethanol Biodiesel Bioetanol II gener Biodiesel II gener Bio-hydro Total gross final energy from RES Gross final energy Share of energy from RES [%] Source: Energy Policy by ,7 9,4 11,6 15,0 15,8 16,0 4

5 1.2. Biomass supply in Poland Energy generation from renewable energy sources is heavily leaned towards biomass. In the balance of renewable energy in 2010 the most significant resource was solid biomass, which share in the total renewable energy was 85, 36%. 1. Forestry - The total technical potential of wood from forestry, which could be used directly for energy purposes in 2006, was estimated at the level of about 6.1 million m 3 of wood, what is equaled to 41.6 PJ of energy [source: NREAP 2010] 2. Agriculture The cereal straw (from wheat, barley and rye) is the major agricultural residue with production volume about 23 million tons (in 2008). In reality, however, only about 4-5 million tons of straw from different sources like cereals, maize, rape may be used for energy purposes, because large volumes around 85 % of straw are utilized traditionally in agriculture itself. The surplus can be used in small and medium scale (0.5 7 MW t ). Straw exports or import are not developed. The biomass potential of straw available for energy is estimated at ca. 114 PJ/a. [source: NREAP 2010] 3. Waste: see Tables 1-3 Table: 1. Organic wastes in 2006 [thousand ton] Organic waste Year 2006 [Mg] Animal and vegetable wastes 20096,807 Animal wastes from food products 3185,959 Animal wastes manure 96930,567 Households wastes 7195,170 Source: Central Statistical Office, Environment Protection 2008, Warsaw 2008 p.375 Table: 2. Biomass supply in 2006 Biomass from: Biomass supply Primary energy production [ktoe] Foresty (incl. Import & export) m Agriculture & fisheries 4328 ton 461 Waste ktoe 66 Source: NREAP, table 7 Poland s potential of biomass is relatively very high. Technical potential is estimated from 408 PJ/a to 755 PJ/a. A potential of wood biomass is estimated at about 24,5 PJ /a to 59 PJ /a i.e.: m 3, ( kg). The potential of wood from orchard is estimated at about 15 PJ/a to 22PJ/a. 5

6 Table:3. Estimated availability of domestic biomass in 2015 and 2020 Biomass from: Estimated potential in 2012 [Mg] Estimated potential in 2020 [Mg] Foresty Agriculture & fisheries Waste Source: NREAP, table 61, 64, 67 Agricultural area used for energy crop cultivation in 2006 (cf. NREAP. Table 8) Although Poland has a great potential of agricultural lands only small percentage is used for energy crops cultivation. In accordance with NREAP Template land use in 2006 in Poland for energy crop cultivation (short rotation trees - willows, poplars and for other energy crops such as grasses - reed canary grass, switch grass, Miscanthus and sorghum) was: Table: 4. Energy crop cultivation in Poland 2006 Land for short rotation trees [ha] Land for other energy crops [ha] Total land use [ha] Source: EEA, Renewable Energy Projections as Published in NREAP of the EU Members, 28 Nov 2011 The analyses have taken into account trajectories for the years , which include in accordance with detailed directions and trajectories presented by professional association the most economic solutions, also considering costs of their introduction, demonstrating the highest effectiveness of the use of renewable resource, development of the technology of their use and the best environmental effects [source: NREAP 2010]. Results from the first of the analyzed works contained in the report of the project REFUEL indicate that potential of energy crops in Poland is up to TJ. So high, future-oriented technical potential of energy crops obtained under this project is a result of the following assumptions: 1) Assimilation efficiency (intensity) of the national agriculture to agriculture in the EU-15, but with significantly increasing the yield of energy crops in ) In effect, a surplus-while maintaining the country's food self-sufficiency and 11.5 million hectares of arable land not taken into account as food crops [source: The Possibilities of using RES in Poland until 2020, 2007] Report results lead to the conclusion that if Poland had used its full technical potential of energy crops to produce only transport biofuels, in the year 2020 it could ensure that supply of biofuels equivalent to the energy value of to TJ [source: as above] 6

7 The sustainability criteria take into account by the official NREAP resource assessments. Bio components and biofuels Act (2006) Chapter 4 describes some regulations regarding criteria that should be observe by bio components producers: 1. Ministry of Economic will announce: 1) The quality requirements for bio- components, 2) methods for quality testing of bio-components, 3) the method of sampling bio-components 2. Institutions realizing the National Target Index are obliged to use each year at least minimum of bio components and other renewable fuels in general quantity of liquid fuels and liquid biofuels sold or disposed in other forms or used for its own needs 3. Every 3 years Ministry Council of Poland defines the National Index Target for the next six years taking into account the possibility of raw materials and productive capacity fuel industry and the provisions of the European Union in this area. NREAP 2010 Sustainability criteria for biofuels will be transposed into Polish law through the amendment of the Biocomponents and biofuels Act 2006 There are no plans to create new national institutions in order to monitor required criteria. Verification of compliance criteria sustainable development will be conducted by existing units. The relevant provisions will be in the amended Act of the Bio-components and biofuels Act 2006 and on the Energy from RES Act, whose adoption is expected in second half of Bioenergy strategies, targets and action plans There are several documents regarding the Energy situation in Poland and its aims until 2020 and 2030 in accordance with EU Directives regarding bioenergy sector. One of the most relevant is NREAP published in 2010 by Ministry of Economics and The Polish Energy Policy until Polish Energy Policy until 2030 An another important document regarding energy situation in Poland and containing aims to be achieved before 2030 is The Polish Energy Policy until 2030 approved by Ministry of Economy in November Priority activities indicated in the draft document include: 1. Improvement of energy efficiency Polish government's goal is to reduce the demand for primary energy and reducing energy intensity of the Polish economy similar to the level of EU-15: Zero-energy economic growth EU-15 level of energy intensity of Polish economy Polish government also wants to improve, for instant, end-use energy efficiency, increase doubly (compared to 2006) production of energy with an emphasis on high-generation technologies by 2020, or enhance building of highly efficiency generation units. 7

8 2. Increased security of energy supplies stable supply of energy and fuels from different sources which is designed to provide diversification and ensure the supply of energy at a price that will be accepted by society and adequate to economic development of the country: a. Effective management of coal stock located in Poland b. Meeting the domestic demand for coal c. Developing the low-emission technologies for the coal gasification and processing it into liquid and gas fuels d. Gas diversification of source and supplies of natural gas e. Some specific goals for gas extending the natural gas transmission and distribution system, improvements in gas storage by extending the storage capacity, enhancing gas extraction within the territory of Poland f. Obtaining crude oil from different parts of the world, from different suppliers, using alternative transport routes 3. Increased use of renewable sources of energy, including biofuels - due to expected dynamic development of RES the energy production from RES is consider as a highly important and one of the most significant process in energy strategy until Although biomass will be considered as a greatest potential: Special preference will be given to the most energy efficient solutions, inter alia, using various techniques of biomass gasification and conversion into liquid fuels, in particular the second generation biofuels. The use of biogas from landfills, wastewater treatment plants and other waste will be of great importance. The target is to use biomass by means of distributed generation the other RES are going to be developed too, such as: wind power sea & land, geothermal and solar energy. a. Share of RES in the final energy at the level of at least 15 % by 2020 and further increase in the following year up to 16 % until 2030 b. 10% share of biofuel in the transport market c. Obtaining biomass from forestry, forests protecting against overexploitation d. Base a power generation on locally resource availability 4. Development of competitive fuels and energy markets increase competitiveness on the fuel and energy market in order to lower energy and fuel costs. Currently on the polish fuel market there are two main suppliers whose base their prices on purchase costs. The same situation regards the energy. The main aims are to: a. Removing the barriers in switching between electricity and gas suppliers b. Ensure that operation of the fuel and energy markets is undisturbed, thus counteracting excessive price increase c. Balancing the situation on the market among all participants d. Increase a competition by reducing a natural monopoly in order to regulate energy prices e. Controlling an allocation and identification of individual energy costs f. Creating conditions allowing to fix electricity reference prices on the market g. Facilitating switching between power sellers h. Introducing national standards for technical features 5. Limiting the impact of energy industry on the environment - The primary activities will focus on reduction of CO2, SO2 and NOx emissions pursuant to obligations taken by Poland. a. Changing structure of energy power generation towards low-emission technologies 8

9 b. Reduce the harmful effects of the energy sector on water and groundwater c. Reducing CO 2 by 2020 simultaneously maintaining a high level of energy security d. Increase the dump wasting usage in the economy e. Developing and introducing new standards for building new power plants 2.2. Polish National Renewable Energy Action Plan The following general assumptions have been accepted when drawing up forecasts for each type of RES for the National Renewable Energy Action Plan until 2020: 1. In Poland, producers of energy from renewable sources will enjoy support, in order to satisfy requirements of Directive 2009/28/EC. 2. The final energy use in the years was assumed as determined in accordance with Energy Policy of Poland until Gross final energy consumption has been presented for the following two scenarios: (1) Reference scenario that takes into account the energy efficiency and saving measures adopted before 2009; (2) Additional energy efficiency scenario taking into account all measures to be adopted from It has been assumed that in 2010, no new or additional forms of financial support to RES will be introduced, however efforts will be made to propose new legislation aimed at increasing the share of energy from renewable sources in gross final energy consumption (taking into account the development of all RES technologies). 5. The support to renewable energy sources is assumed to be maintained. The development of distributed renewable energy sources will be supported, including determining conditions for retaining rights already acquired for the investments completed or started, and their duration, which would allow reducing end user charges. 6. Maintaining so-called co-firing as RES form to be used in Poland is expected until 2020, taking into account limitations with respect to forest biomass firing. 7. All forecasts, including sectoral ones, are estimates, are based on expert calculations and on existing source documents made available to industry associations. 8. The National Plan presents a path to achieve the objective assumed, together with proportionate shares of electricity, heating and cooling, as well as transport in the achievement of this objective. 9. The National Plan takes into account the existing technologies of RES use, as well as the technologies that might be developed in the future, in Polish functional conditions, as well as the energy market development, taking into account economic, technical, as well as formal and legal aspects. All costs calculations have been performed based on prices of given technologies from It has been assumed that electricity exchange balance with neighboring countries would equal zero. 10. Taking into account the development of RES in the electricity sector, the development of sources based on wind energy and biomass is primarily expected. An increase in the number of small hydro power plants has also been assumed. Taking into account the development of RES in the heating and cooling sector, maintaining the market structure existing until now has been expected, taking into account the development of geothermal and solar energy. 9

10 11. Energy consumption in the heating and cooling sector, and the share of RES in this sector shall be understood as heat including so-called network heat, as well as heat generated on an individual bases in the household, services and agricultural sectors. 12. Taking into account the development of RES with respect to the transport sector, a growth in the share of biofuels and bio-components in transport fuels has been primarily expected. In accordance with estimates of industry association, until 2020 the car transport shall not use electricity to a large extent, which translates to a limited share of this technology in the fuel market. [source: NREAP 2010] 3. National Renewable Energy Action Plan - Main Provisions The main object for the Polish government is to increase a share of RES in energy production at the level of 15% by According Marshals of polish voivodeship convet national action plans regarding renewable sources until 2020 should be a priority Table: 5. Share of energy from RES in gross final consumption (2005 & 2020) Source: NREAP, 2010 Sectoral RES targets (electricity, heating/cooling, transport) Table: 6. Sectoral energy consumption [Mtoe] Source: NREAP

11 Chart 1 Source: NREAP, 2010 OZE- transport = RES transport OZE ciepłownictwo I chłodnictwo [%] = RES heating & cooling OZE elektroenergetyka = RES electricity OZE całkowity udział OZE [%] = RES total share [%] Table: 6. National target 2020 for heating, cooling, electricity & transport [%] Description \ [%] RES heating & cooling (district and non-district systems) RES-electricity RES-transport Overall RES share Of which from cooperation mechanism Surplus for cooperation

12 mechanism RES min. trajectory RES min. Trajectory [ktoe] Source: NREAP Expected biomass import needs, expected domestic supply/consumption, expected exports: Avaiability of biomass: Theoretical potential ha Technnical potential estimated from 408 PJ/a to 755 PJ/a Economic potential - (technical potential provided at economically profitable level) from 160 PJ/year to 600 PJ/year (depending on the source) The ways of achieving the national RES targets in each of the sub-sectors: heating/cooling, electricity and transport: Biofuels - in accordance with EU directive 2003/30/EC of 8 May 2003 on the promotion of the use of biofuels or other Poland needs to increase share of renewable fuels from bio-components to 5.75% in the transport fuel market in 2010 and to 10% share in Taking into account the above boundary value of the minimum participation bio-components in the transport fuel market, it is anticipated that the path investigation into the largest in Poland in the years in accordance with the National Index Target, will be developed as follows: Table: 7. Share of bio-components in transport fuel market r. 2,30 % 2008 r. 3,45 % 2009 r. 4,60 % 2010 r 5,75 % 2011 r. 6,20 % 2012 r. 6,65 % 2013 r. 7,10 % 2014 r. 7,55 % Source: Long-term program for Promotion of Biofuels or Other Renewable Fuels in Transport for the years

13 The key measures to promote bioenergy NREAP: Certification system imposed on RES producers The obligation to purchase energy produced from RES imposed ex officio on sellers of electricity, who issued conditions of connections to the grid for a given source Reduction of the fee for connection to the grid The possibility to obtain, in addition to certificates of origin for RES energy, so-called certificates of origin from cogeneration, which also have a financial value Additionally, the Act of 6 December 2008 on excise duty provides for exemption of energy produced from renewable sources from excise duty in case of its sale to end users Special principles of wind farm balancing Financial support for RES producers Operational Program Infrastructure and Environment Long-term Programme for Promotion of Biofuels or Other Renewable Fuels in Transport for the years , Bio-Components and Biofuels Act as well as System controlling and monitoring for fuels quality Act have implemented many positive changes into the Polish Legislation system for fuels of RES promotion. It allowed to create stable and beneficial conditions for biofuels production, the three most important are: Possibilities for farmers to produce liquid biofuels for their own use. Farmers can produce for their own use all kinds of biofuels alone fuels. The annual number of allowable production for their own use is 100 liters per hectare of agricultural land owned by the farmer. The obligation of specified share of bio-components in the transport fuel market. Introduction to Polish law the concept of "fleet" defined as a group of at least 10 vehicles, agricultural tractors and machinery non-road or group of locomotives or vessels, equipped with engines designed to burn liquid biofuels, The types of bioenergy that should be imported/ exported Adopted energy policies are largely independent. Improving energy efficiency reduces demand for fuel and energy, contributing to energy security, due to reduced dependence on imports, and also works to reduce the impact of energy on the environment by reducing emissions. Similar effects brings the development of the use renewable energy sources, including the use of biofuels, the use of clean coal technologies and implementation of nuclear power [source: Energy Policy until 2030]. The maximum share of imports of natural gas and oil in total (per toe) from one direction to the size of the domestic consumption of both raw materials (%) was at the level of 85 [toe] in 2007 and it is estimated to be below 73 [toe] until 2030 [source: Energy Policy until 2030]. Polish economy is based on gas (70%) and crude oil (over 95%) import. Policy Energy will focus on the diversification of supply of raw materials and fuels, defined well as the diversity of technology, and not, as until recently - only differentiation supply directions. There is also a possibility to increase the share of gas extracted in the country, or it production on the basis of Polish materials. Surpluses of cereals and rape above domestic needs, including generally understood industrial demand, are exported [source: NREAP 2010]. Polish Energy Policy until 2030 assumes that by stimulating technologies required on the renewable energy market it would be a possibility to export the machinery. 13

14 Specific provisions referring to bioenergy (National Sustainable Development Strategy, National Biodiversity Strategy, Forest Strategies): The following assumptions for estimating supplies of biomass from forestry in 2006 were adopted: sales of wood for energy purposes by State Forests National Forest Holding equals about 5,117 thousand m3 (own calculation based on the data of the Central Statistical Office); tops, branches, bark and stems will account for 5% of wood obtained; cleanings and renovations allow to obtain 6 m3 from 1 ha of tree-covered area; calorific value of wet wood was assumed at 7 MJ/kg; due to good situation in the wood processing industry in 2006, much more waste reached the market than in previous years. It is estimated that about 5,960 thousand. m3 were used for energy purposes; - in 2006, about 270 thousand Mg of pellets were manufactured [source: NREAP 2010] There is no integrated biomass strategy. However there is a biomass mention in further info NREAP as follow: on biomass particularly the most- efficient solutions will be taken into account. use of various techniques of gasification and conversion to liquid fuels (in particular II generation fuels) utilisation of biogas from landfill, wastewater treatment plant and other waste use of biomass for distributed generation 4. Policies promoting sustainable production and use of bioenergy In the current legal status there is no separate certification/qualification scheme for installers of small-scale biomass boilers and stoves, solar photovoltaic and solar thermal systems, shallow geothermal systems and heat pumps. These installers are subject to the obligatory confirmation of professional qualifications based on Article 54 of the Energy Act, which applies to all persons operating networks, equipment and installations, and the regulation on the detailed principles of verifying the qualifications held by the persons operating the equipment, installations and networks [source: NREAP 2010]. Polish companies/ manufacturers in order to sell raw materials or products fulfilling sustainable development criteria have to use currently German system of certification ISCC 26 companies; REDcert 60 companies [Michal Cierpiałowski, Quality Assurance Poland European Certification Systems of Sustainable Fuels Development] 14

15 5. Policy needs and recommendations According to the Polish Treasury Minister the big problem for the expenditures for bioenergy sector is lack of investment plans. Another equally important issue is the regulatory environment. - Investors do not have clarity as to shape the rules do not allow them a fair review of the investment. This applies even if the energy projects depend largely on the regulation of CO2 emissions - admitted Budzanowski. Among the key projects listed here act on transmission corridors and a project aiming to release the gas market [source: dzialan,162241_1_0_0.html Maciej Shepherd, president of Enea SA estimates that it would be difficult today to think about the future of the Polish power industry based solely on the RES. In his opinion, the primary fuel, coal will still Polish energy sector over the next few years [source: Positive developments and key opportunities of bioenergy production and use for sustainable development The greatest opportunities appear for potential investors and companies which are going to develop the green energy. A big chance and development should experience local authorities and communes where in general bioenergy technology is developed. As EU Directives impose also neighbours cooperation it might contribute to the growth of neighbours grid infrastructure. International cooperation leads to merit, technological and theoretical country green energy awareness and development [own thoughts] 5.2. Undesirable developments and risks of increased bioenergy production and use for sustainable development The EU energy policy is slightly dangerous for Poland. The primary fuel use in Poland is coal that is rightly regarded as a national resource. With it high emission it will be hard to meet EU requirements in order to reduce CO 2 emission and climate protection ambition [interview with Ex-minister for Environment New Industry ] 5.3. Policy needs and recommendations: key recommendations for Poland This sub-chapter has been prepared in cooperation with the Institute of the Fluid-Flow Machinery of the Polish Academy of Scences. It will be developed further in the extension stage of the Bioenergy Promotion project. Along with the above general policy recommendations, the following specific actions are recommended (by the experts) to improve conditions for RES development in Poland: - National Action Plans should be more clear and understandable for implementing them into business operations 15

16 - More effective policies to reduce energy demand and consumption should be developed - The current high burden of bureaucracy should be reduced - The polish Energy Law should also be reviewed in order to stimulate more investments in RES - Too complicated or not accurate rules discourage development of businesses in the country - More responsibilities and administrative procedures should be delegated to local authorities as they know best their local situations - The utilization of local biomass for local energy needs should be strongly promoted as using local small renewable energy sources can contribute to costs reduction of energy production and transmission, building costly grids is not needed and redundancy of system energy can be avoided. - A strategy, including dedicated support system should be implemented to achieve the diversification targets in the transport sector - Long term taxing strategy should be developed, especially in the transport sector - Special support system should be addressed to distributed, small and micro renewable energy developments, especially CHP plants, using local bioenergy resources and ensuring their competitiveness relative to other renewably energy sources, especially at the stage of investment and for the most innovative technologies. - Clear rules on subventions of co-firing should be introduced in order to insure sustainability of energy produced using this solution. - Facilitate and accelerate the development of grid system for connection of distributed, cogeneration small and micro-power plants operating on RES base. - Introduce a mechanism for execution of the obligation of purchase of renewable energy - Introduce the right pricing strategies to stimulate the RES development in Poland (minimum price for obligatory purchase; End customer prices) - Stronger encouragement and support of energy use of residues and wastes is needed - Clear rules on subversions are needed, especially in case of SMEs investing in RES. - Subventions should be provided based on the results of the processes, and not based on technologies used. - Introduction of clear standards in the context of renewable energy development is recommended - introducing necessary regulations to secure sustainability criteria for production and use of all forms of renewable energies, development of methods for RES sustainability monitoring and control. - Strong support for actions leading to raising awareness in the society about sustainable bioenergy development. 16