Poland s strategy and Poland s market for Renewable Energy Sources

Transcription

1 New direction in energy and climate change Conference of the Federal Environmental Ministry Berlin, February 2004 Poland s strategy and Poland s market for Renewable Energy Sources Grzegorz Wisniewski EC Baltic Renewable Energy Centre EC BREC

2 Plan of this Presentation Status Poland in comparison to EU and ACC-10 Strategies and programmes Market Law Institutions Summary

3 Utilisation of renewable energy sources in 2002 Source Capacity (MW) Electricity Production (GWh) Heat production (TJ) Total energy production (TJ) Contribution to total energy production Biomass ~ Solar Geothermal + heat pumps Wind Hydro (small plants 524 (185) 2276 (698) (2511) 7.3 (2.2) <5 MW) Total ~ *Biomass 98% of total production of renewable energy (large hydro-electric power plants not included)

4 Utilisation of Renewable Energy Sources in ,3% 0,5% 0,2% 92,0% Biomass Hydro Geothermal Wind

5 Accession Geography Cyprus Czech Republic Estonia Hungary Latvia Lithuania Malta Poland Slovakia Slovenia

6 Contribution of RES to Prim ary Energy Consumption in 2001 [%] Country Czech Republic RENEWABLE ENERGY (INCL. LARGE HYDRO) 1.5 BIOMASS 0.9 Estonia Hungary Latvia Lithuania Poland Slovakia Slovenia REGION 7 5 Source: IEA 2003 Due to the lack of statistical research into the consumption of biomass by small users (over 80% of the total consumption of biomass) estimated contribution of primary energy from RES may be very different from the actual level.

7 RES Consumption Structure in ACC, 2001, [PJ] PJ Hydro Hydro Solar Geothermal Wind Biomass 20 0 Cyprus Czech Republic Estonia Hungary Latvia Lithuania Malta Poland Slovakia Slovenia Source: Reiche D, 2003, Handbook of Renewable Energies in the European Union II

8 Policy & legaldrivers forres Country RES targets (primary energy) RES-E targets 2010 Biofuel Act or national programme Environmenta l funds Feed-in tariff Cyprus 9% %? Czech Republic 4% % % National Program Estonia - 5,1% Hungary 7,2 % ,6%? Latvia 12% ,3% Lithuania - 7% National Program Malta - 5%? Poland 7% % ,5% Act quota targets Quota obligation Slovakia 4% %? Slovenia 12% ,6%

9 Targets ofthe Development Strategy of Renewable Energy Sector 2001 Strategic target in % in primary energy balance Strategic target in ,5% in primary energy balance Necessary investments in years : 14,5-19,1 mld zł Average yearly share of public funds in RES investments : mln zł/yer (15,7-16,4 % total RES investment) Share of RES-E in the electrcity consumption 7,5-9,0-12,5%

10 Generation ofenergy from RES in Development Strategy of Renewable Energy Sources Total production of energy in 2010, TJ Solar water collectors Solar air collectors Geothermal heating plants Bioethanol Rape oil methyl esters Independent biomass-fired boilers Automatic straw-fired heating plants Automatic wood-fired heating plants Wood-fired combined heat and power plants Landfill gas Farm biogas plants Town biogas plants Photovoltaic systems Small hydro-electric power plants Wind power plants

11 Structure of CapacityIncrease in RES in Poland by 2010 in MW, Development Strategy forrenewable Energy Sources Geothermal heating plants Wood CHP Small biomass boilers Straw-fired heating plants Wood-fired heating plants Solar woter collectors Solar collectors Landfill gas Agricultural biogas plants Municipal biogas plants Photovoltaic systems Small hydropower plants Wind power plants [MW]

12 Structure ofcapacity Increase in Renewable Energy Sources in Poland and EU by 2010 Additional capacity in Poland, , % Additional capacity in EU in , % Small hydro Wind power plants Photovoltaics Biogas plants Solar collectors Biomass-fired boilers Biomass-fired CHP s Geothermal heating plants

13 ActualCapacity Increase of Renewable Energy Sources from 1999 Kind of installation Capacity in MW in 1999 Capacity in MW in 2002 Capacity increase in MW Growth rate in %/year Wood-fired heating plants Straw-fired heating plants Biomass-fired boilers Town biogas plants Landfill gas plants Solar collectors Geothermal energy Wind energy Small hydro-electric plants Total Average: 15 Capacity increase in wood-fired installations at small consumers and in industry is unknown.

14 Share of RES in electricity production in Poland in 2010 ac. SAFIR E m odel,ec BR E C 2001 RES Scenario 7,5% Environment Scenario 12,5 % other wind 33 % 0% other 0% biomass 39% wind 49% biomass 60% biogas 4% hydro 3 % biogas 7% hydro 5%

15 Current Utilisation of Renewable Energy Sources inpoland Source Production of energy from renewable sources PJ % of potential Biomass % Hydro (small hydro-electric plants) 2 5% Geothermal energy % Wind energy % Solar radiation % Total % Contribution to primary energy balance 2.75%

16 Market 1: Prices of Green Electricity in 2002,(PLN/MW h) Biogas Biomass Hydro-electric plants Small hydro Wind Average price for RES Average price in generation sector

17 Market 2: Bioenergy develop m entin Poland - shortand m e dium term problem s CO-FIRING (biomass+coal), large power plants, industry BIOMASS DISTRICT HEATING (municipalities) CHP (small and medium scale, industry, municipalities) TRANSPORT (biodiesel, bioethanol) Problem: development of solid biofuels market BIOGAS (from agriculture) BIOMASS GASIFICATION Problem: market maturity of technologies

18 Market-3 co-firing(1) Quantitative Goals and OrganisationalProblems Accession Treaty an indicative goal for Poland (7.5%) Governemnt apprach - 4% of green electricity from biomass co-firing in % of green electricity from biomass = 65 PJ of chemical energy of biomass = million m 3 of fuel (fresh) wood should be logged million cubic meters (loose).

19 Market 4:biomass co-firing (2) Quantitative Goals and Organisational Problems Continued Biomas from sustainable forestry sector - maximum 4 million m 3 of wood for energy purposes. Present logging of wood by State Forests for energy purposes - approximately 2.5 million m 3( an additional volume somewhat in the region of 1.5 million m 3 can be logged) The missing million m 3 should therefore come from energy crops (an area of land area necessary for producing such a large volume of wood is ca. 300 thousand hectares) or from import? Problems: Will the creation of a sufficient biomass market be successful? Will allocation of land for energy crops be successful? Will the price of produced green energy not be too high in view of the current demand for biofuels?

20 Bioenergy m arket 5: Opportunities for energy crops in Poland and A C C 120 Fuel import dependancy, % of all fuels Ma lta Cyprus Slovakia Slovenia Hungary La tvia Lithuania Estonia Czech Republik Poland - 1,00 2,00 3,00 4,00 5,00 6,00 7,00 8,00 9,00 10,00 Agricultural area per capita, ha

21 Market 6: Wind Power - Short-and Middle-Term Possibilities and Problems to be Resolved On-shore wind power (60 MW 2003) benefits for local governments Off-shore wind power stepwise increase in the production of green energy Problems! Environmental impact and social acceptance social image Influence on power system forecasting and balancing Reduction in import of plant and involvement of national industry

22 Overcoming Barriers to Development of RES in Poland Market stimulation by subsidies and legal instruments VICIOUS CIRCLE OF RENEWABLE TECHNOLOGY SMALL SCALE OF PRODUCTION HIGH COSTS Area of cooperation with industry and scientific centres R&D of renewable technologies Area of cooperation with local governments in implementation of projects

23 Financing: Available External Funds fordevelopment of RES in Poland Estimated External Public Aid to Renewable Energy Sources in Poland in (EUR m) Bilateral funds Year Environmental swap of Polish debt Flexibility mechanisms of Kyoto Protocol Global Environmental Facility (GEF) EU structural and cohesion funds EU 6th Framework Programme for R&D EU Energy Programme Intelligent Energy for Europe SAPARD pre-accession programme PHARE assistance programme Based on estimates ofthe EC BalticRenewable Energy Centre.

24 Government Activities to Provide Legal Supportof Development of RES Minister of Environment appointed the Inter-Departmental Group for Implementation of Development Strategy for Renewable Energy Sources Ministry of Environment drafted the government s Wind Energy Development Programme for Poland Ministry of Economy in negotiations on Directive 2001/77/EC with the European Commission the Polish government adopted an indicative quantitative goal concerning green electricity for Poland for 2010 (7.5 %) Ministry of Economy updated the Energy Law and ordinance on obligation to purchase green energy and started work on certification of green energy Minister of Environment recognised renewable energy as one of 10 priorities of the Ministry Ministry of Environment started work on the Renewable Energy Sources Development Act Ministry of Agriculture developed and Polish Parliament passed the Biofuel Market Organisation Act. Council of Ministers issued the ordinance concerning minimum quantity bio-components in 2004 Ministry of Economy draft update of Energy Law - certification of orygine introduction

25 Grounds for Com m encementofw ork on Drafting of the RES Act Regulation process of renewable energy sources in EU: White Paper ( 97), directive 2001/77/EC ( 2001), directive 2003/30/EC ( 2003), draft directive on green heat agreement with European Commission on implementation plan for directive 2001/77/EC in Poland undertaking of Office for European Integration Committee to develop government draft of act on renewable energy sources tardy development of renewable energy sources in Poland

26 Underlying Ideas ofdraft Act on Supportof DevelopmentofRenewable Energy Sources

27 Institutional Structure Local governments Power companies Agricultural sector Independent investors and energy suppliers Industry / plant manufacturers Scientific circles Associations and NGO s Polish government Polish parliament

28 Summary Renewable resources are sufficient (large in the scale of members of EU-25). Political goals are ambitious but a gap between political and legal documents exists (implementation programmes missing). The pace of development of the sector is slower than expected. Support systems are incoherent and unstable. Coherent long-term vision of the development of the sector and adequate support mechanisms are necessary in order to create a renewable energy market. In RES, big does not always mean better or cheaper. In the sector, it is not the economy of scale but rather a plant mass production effect which works (dispersed resources and eco-development) Poland will benefit from accession to the EU if it has a strategy, implementation plans and programmes coinciding with EU s policy but recognising strong points of RES in Poland.

29 Further information: Thank you for your attention EC Baltic Renewable Energy Centre EC BREC Contact: EC BREC/IBMER Rakowiecka 32, Warszawa tel/fax (+48 22) , , Internet: