Informacje

DMS
  February 14, 2012

  End of official consultation of the new RES act
 

Interested parties sent over 600 remarks to the Ministry of the Economy in the course of official consultation of the new RES act, which ended February 6, 2012. As we learned from the Ministry of the Economy, the remarks were often similar, or even identical in over eighty cases, where every member firm of one renewable energy association sent identical remarks. Sometimes the remarks were quite critical. The Polish Chamber for Renewable Energy PIGEO questioned the basics for the new RES Act and proposed to redraft the new law from zero implementing feed-in-tariffs. The Forum Energetyki Odnawialnej ZP FEO concentrated their remarks on further simplifying the subsidy system for micro-sources. And the Polish Wind Energy Association, PSEW, mainly questioned the missing temporary arrangements for already connected sources and the level of the correction coefficient for onshore wind. Additionally, another pitfall is the missing obligation to purchase energy for the so called URE-price (the average energy price for the previous year). 


  Obligation to purchase More Green Certificates Being Discussed
 

 

The new targets will be: 

YEAR 

CURRENT OBLIGATION 

2010 DRAFT 

CURRENT DRAFT 

2012 10.4% 10.4% 10.4%
2013 10.9% 10.9% 12.0%
2014 11.4% 12.5% 14.0%
2015 11.9% 12.5% 14.0%
2016 12.4% 14.0% 15.0%
2017 12.9% 15.4% 16.0%
2018 - 16.7% 17.0%
2019 - 18.7% 18.0%
2020 - - 19.0%
2021 - - 20.0%

 

An increase to with 11 TWh in

19 percent in 2020 means green energy production amounting to 30 TWh compared 2010. 

The expected increase and prolongation of the percentage of Green Certificates energy producers have to obtain provides the market with stability. Although the Polish Government is not ready for the so-called “UK headroom” solution, the political will to stabilize the certificate market is recognizable. The new draft regulation will come into force most probably with the new RES act in mid 2012. 


  How much one can earn at particular stages of wind farms development?
 

2) The companies which build wind farms invest an average of 1,300,000 EUR per megawatt. The vast majority of costs incurred relate to the purchase of turbines. Additionally, costs of installation, transport and infrastructure construction - roads and installations.

After a period of 1-2 years of wind farm construction, these projects are then sold to entities, which exploit the wind farm. 

3) Fully operational wind farms are valued in the range of 1,800,000 to 2,000,000 EUR per megawatt. Such wind farms are usually purchased by long-term strategic investors. Currently, large utilities are generally investing to diversify their own production portfolio. Apart from that, large energy consumers are entering the market as they want to invest in their eco-friendly image and try to provide renewable energy resources to cover their own requirements. Finally, long term financial investors are also active in this market: such investors look for profits through a 30 year period of wind farm operation. Such potential buyers are, e.g., open pension funds. 



  Correction coefficients will be valid for 15 years
 

According to Janusz Pilitowski, author of the Renewable Energy Sources Act in the Ministry of the Economy, the so-called correction coefficients for green energy producers will be valid for 15 years at the moment such certificate enters the subsidy system, e.g. when receiving a license for green energy production from the regulator, URE. Recently, some lawyers active with the Polish Wind Energy Association (PSEW) questioned the wording of the new RES Act, but Mr Pilitkowski explained how to properly interpret the new law. The intention is that, due to technical progress and market development, the correction coefficient will change every five years, and will then be valid for green energy producers entering the subsidy system at the given moment for the 15-year-period, but the new correction coefficient will be published two years in advance. The Ministry of the Economy is considering implementing the first correction coefficients directly to the new RES act to avoid misunderstandings, although it was planned to implement and to change the correction coefficients by regulation. 



 

For more information please contact:

 

       

dr Christian Schnell
coordination/transactions/
venture agreements
cschnell@dms.net.pl
 
C. David DeBenedetti J.D.
project finance
ddebenedetti@dms.net.pl
 
Joanna Świostek
project development/planning
and building law/commercial
jswiostek@dms.net.pl




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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