July 30, 2012



The published draft of the RES Act hasn’t changed substantially in the previous weeks. Generally, it sticks to the solutions already known for a while – see the DMS Renewable Energy newsletters dated March 26, 2012 and May 29, 2012.

The RES Act introduces - as expected - the correction coefficients for 20 different types of RES for the first five years. The correction-coefficient for the given investment at the moment of entering of the royalty scheme into force– when a license for green energy production is issued - will generally be valid for 15 years.

YEAR On-Shore Wind over 0.5 MW Biomass over 10 MW (CHP) Co-Firing
2013 0.9 1.15 0.3
2014 0.9 1.15 0.3
2015 0.875 1.125 0.25
2016 0.85 1.10 0.2
2017 0.825 1.075 0.15

Other correction-coefficients of major importance are:

YEAR PV over 0.1 MW Agricultural biogas over 1 MW Hydro (mid-sized)
[1–5 MW/5-20 MW]
2013 2.85 1.4 1.7/2.0
2014 2.85 1.4 1.7/2.0
2015 2.70 1.375 1.675/1.975
2016 2.55 1.35 1.65/1.95
2017 2.40 1.325 1.625/1.925

The offshore correction-coefficient amounts to 1.8, but from 2013 to 2017, no offshore investment will be connected to the grid, so this correction-coefficient is without practical importance.

According to the RES draft, for RES units up to 15 years the recent correction-coefficient amounting to 1.0 will be granted, but not from the moment the new RES act will be in place, but from the moment the given unit has been licensed under the existing royalty scheme.

The certificate system will be in place for

  1. 5 years, but not longer than until 2020 – for co-firing installations,
  2. 15 years, but no longer than until 2027 – for micro (up to 40 kW) and small (up to 200 kW) installations,
  3. 15 years, but no longer than until 2035 – for all other RES,
  4. until 2035 – for the Hydro Power plant owned by Energa in Włocławek if Energa builds a second Hydro Power plant on the Vistula river.

For the stabilization of the certificate scheme during the next couple of years, the carving out of co-firing is of major importance – see the DMS Renewable Energy Newsletter dated July 16, 2012. Co-firing being responsible for 40% of “green” energy production should be taken out from the certificate system as soon as possible, thus avoiding oversupply. According to the RES draft for co-firing units, only a five-year-period under the new royalty scheme with the recent correction-coefficient amounting to 1.0 will be granted, but not from the moment the new RES act is in place, but from the moment the given unit is licensed under the existing royalty scheme. Most of the Co-Firing units were licensed in 2008 and 2009, and will be automatically promoted under the new royalty system until 2014 at the latest. Additionally, under the new law, large consumers will have an obligation to purchase certificates, which will increase the number of potential purchasers. Therefore, according to experts the green certificate price will stabilize and no further decreases as in the 1st half of 2012 should be expected. A potential short-term oversupply will be absorbed by the market, as trading with green certificates issued will be postponed by their owners expecting a further increase of the certificate price. Last but not least, a “headroom solution” in case of oversupply of certificates will be in place as well. If, over a period of two consecutive quarters, an average price of certificates on the stock exchange amounts to less than 80% of the compensation fee, the Ministry of the Economy will increase the percentage obligation to purchase green energy to an appropriate value. This solution is important for debt-sizing by commercial banks.

Without co-firing playing a major role in the RES energy production, Poland will not likely be able to reach the 2020 target. The 2010 Action Plan was mainly based on co-firing. How will the EU Commission react to that? As the EU-Commission recently plans to introduce binding targets for 2030 to avoid a collapse of the RES industry sector – see DMS Renewable Energy newsletter of June 20, 2012 - the countries not reaching the 2020 targets presumably won’t be penalized if they agree to binding targets for 2030 and to coordinate the RES policies with harmonized royalty schemes. Poland should rather agree to this political development, and claim for more funds under the next EU six-year budget to move further on with developing its RES industry sector. The Ministry of the Economy anticipates that 80,000 new jobs will be created with RES until 2020, whereas 20,000 jobs will be lost due to the restructuring of the coal mining sector.


For more information please contact:



dr Christian Schnell
venture agreements
C. David DeBenedetti J.D.
project finance
Joanna Świostek
project development/planning
and building law/commercial

DeBenedetti Majewski Szcześniak has been chosen
by Corporate Intl Magazine 2012 as the:

“Renewable Energy Law, Firm of the Year in Poland”

“Project Finance Law, Firm of the Year in Poland”

“Investment Funds Law, Firm of the Year in Poland”




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