Renewable Energy and Bio-fuel Situation in Poland

An Expert's View about Energy in Poland

Posted on: 26 Jan 2013

In Poland energy from renewable sources is gradually rising. In 2011 energy production renewable sources accounted for 11.2 percent of total primary energy production.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Voluntary Public - Date: 12/28/2012 GAIN Report Number: PL 1235 Poland Post: Warsaw Renewable Energy and Bio-fuel Situation in Poland Report Categories: Biofuels Approved By: Michael Henney - Agricultural Attaché Prepared By: Monika Zochowska, Student Intern; Agata Kingsbury, Mira Kobuszynska, Agricultural Specialists Report Highlights: In Poland energy from renewable sources is gradually rising. In 2011 energy production from renewable sources accounted for 11.2 percent of total primary energy production. Poland has not transposed the Renewable Energy Directive (2009/28/EC) (RED) as the government has not come to agreement on a Renewable Energy Act. Further, Poland has not fully transposed Directive 2009/30/EC on fuel specifications and quality monitoring into national law also because of lack of agreement within the government. Among renewable sources, the wind energy sector is growing most rapidly. Table of contents I. Renewable Energy – Policy and Programs II. Energy Situation in Poland III. Renewable Energy Sources – Overview 1. Biomass 2. Biofuels 3. Biogas 4. Hydro-energy 5. Wind energy 6. Geothermal energy 7. Solar energy General Information: I. Renewable Energy – Policy and Programs The national basic legal acts that regulate obligations concerning usage of renewable energy sources (RES) and biofuels in Poland are: Energy Act (published on April 10, 1997; Journal of Laws of 2006, No 89, item 625), as amended, The Act of 25 August 2006 on bio-components and liquid biofuels (Journal of Laws of 2006 No. 169, item. 1199, as amended), The Act of 25 August 2006 on monitoring and controlling the quality of fuels (OJ of 2006 No. 169, item. 1200, as amended), The Act of 27 May 2011 amending the Act on monitoring and controlling the quality of fuels and certain other acts (Journal of Laws of 2011, No. 153, item. 902), Regulation of the Minister of Economy of 17 December 2010 on the quality requirements for bio-components, test methods and quality bio sampling method (Journal of Laws of 2010, No. 249, item. 1668), Regulation of the Minister of Economy of 22 April 2010 on the methods of testing the quality of liquid biofuels (Journal of Laws of 2010, No. 78 item. 520), Regulation of the Minister of Economy of 19 March 2010 on the procedure for the certification of quality bio by accredited certification bodies (Journal of Laws of 2010, No. 61 item. 379), Regulation of Minister of Economic Affairs concerning detailed scope of requirements for obtaining certificates of origin and purchase of electric energy and heat stemming from renewable energy sources (published on August 14, 2008; Journal of Laws of 2008, No 156, item 969), The European Union basic legal acts are: Directive of the European Parliament and of the Council 2009/28/EC of 23 April 2009 on the promotion of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC. Directive of the European Parliament and of the Council 2009/30/EC of 23 April 2009 amending Directive 98/70/EC as regards the specification of petrol and diesel fuels and introducing a mechanism to monitor and reduce greenhouse gas emissions and amending Council Directive 1999/32/EC as regards the specification of fuel used by inland waterway vessels and repealing Directive 93/12/EEC. The EU Directive 2009/28/EC on the promotion of renewable energy sources and Biofuels (RED) has been not yet transposed to the Polish national low, although the time frame of implementation set by the EU was December 5 of 2010. The directive deals with such issues as electric energy, warm energy and transport fuels. The Polish Ministry of Economy prepared a draft amendment to the Law on bio- components and liquid biofuels (The Act of 25 August 2006 on bio-components and liquid biofuels, Journal of Laws of 2006 No. 169, item. 1199, as amended). The project is still discussed because of different points of view among political parties. The reason for delay was mostly the lack of agreement on the implementation of the National Indicative Targets and changes in the mechanisms of support. According to experts the policy on biofuels - in particular the imposition of a very high level of NIT – is resulting in increased prices of liquid fuels in Poland. Further promoting the use of biofuels such as B100 will result in a further increase of costs and thus retail prices of fuels. It is most likely that the new law will come into force not earlier than in 2013. The European Commission has initiated a formal investigation against Poland which can result in substantial financial penalties. The Long-Term Project for the Promotion of Biofuels or Other Renewable Fuels (2008-2014) is a document prepared by Ministry of Economics where the general incentives to enhance domestic production of bio-components were laid. The mechanisms, which were introduced to ensure that bio- components and liquid biofuels production process will be economical, were: - support for bio-components production in regard to tax system and fuel charge; - support for cultivation of energy crops as a feedstock for bio-components production; - financial support from EU fund and national public funds for the investments regarding bio- components and liquid biofuels production; - actions intended to encourage the increase in demand for liquid biofuels; - scientific research activities concerning liquid biofuels and informative and educational activities in regard to liquid biofuels. The support for bio-components producers concerning tax incentives, which enabled the use of lowered excise duty on motor petrol or diesel fuel containing at least 2 percent of bio-components and tax deduction for producers of bio-components, applied only until April, 30 2011; the government decided not to extend the program. (Sources: www.wnp.pl; http://www.e-petrol.pl/index.php/uslugi/spotkanie-branzy-petrochemicznej/SBP11BIO-Spotkanie-Branzy-Biopaliw-2011; The Long-Term Project for the Promotion of Biofuels or Other Renewable Fuels (2008-2014), Ministry of Economics) Poland has still not managed to make a full transposition of Directive 2009/30/EC on fuel specifications and quality monitoring. The term of implementation ended on December 31, 2010. A part of Directive requirements has been implemented to the national low, but still there is no one consistent low regulation. A project of the new Act on monitoring fuel quality, prepared by The Ministry of Economy is waiting for approval of The Council of Ministers, which is planned on the first quarter of 2013. (http://bip.kprm.gov.pl/portal/kpr/form/r199/Projekt_ustawy_o_zmianie_ustawy_o_systemie_monitorowania_i_kontrolowan ia_jakosci.html ) Support for electricity from renewable sources To promote the development of electricity production from renewable sources, the government introduced the mechanism obliging the enterprises selling electricity to end-users to obtain the specified amount of certificates of origin of energy produced from RES (Green Certificates) or to pay a substitution charge. The required share of RES in total annual sales of electricity to final customers by the company shall be not less than: 10.4 percent in 2012, 10.9 in 2013 and 11.4 in 2014. Mandatory EU targets for renewable energy According to the EU Directive 2009/28/EC Poland is ought to achieve by 2020 mandatory target of increasing the share of renewable energy to at least 15 percent of the gross final energy consumption. Moreover, the target concerning required share of fuels from renewable sources used in transportation sector is 10 percent by 2020 and the target concerning share of electricity from RES in gross national electricity consumption is 20 percent by 2020. Voluntary sustainability schemes approved by the European Commission (EC) The sustainability of biofuels production and usage has to be checked by Member States (national schemes) or through voluntary schemes which have been approved by the European Commission (EC). Poland approved following voluntary sustainability schemes for biofuels: International Sustainability and Carbon Certification (ISCC), Red Cert. National scheme is currently being prepared by The Oil and Gas Institute in Warsaw/Poland. II. Energy Situation in Poland Energy production After many years of decline acquisition of primary energy began to grow in Poland and amounted to 2,906.5 PJ in the 2011. Coal mining has been showing a downward trend. However, usage of the renewable energy sources is increasing. Coal is the most important source of energy (62 percent of total primary energy in 2011). The second-largest source of energy is lignite with the share of 18 percent. The share of other sources is as follows: natural gas 6 percent, oil 1 percent, and other, mostly renewable energy, more than 13 percent. The structure if primary energy production in 2010 was following: coal – 65 percent, lignite – 17 percent, natural gas – over 5 percent, oil – ca. 1 percent and others, mainly renewable energy sources – over 11 percent. Energy consumption Domestic consumption of primary energy in 2011 was over 50 percent higher than production and amounted to 4,409.9 PJ. Coal was major energy resource; its share in total consumption was 42 percent. The share of oil was 23 percent, natural gas – 13 percent and lignite – 12 percent. The remaining 10 percent referred to other energy carriers. In comparison with previous years, the share of coal is decreasing in favor for oil and renewable energy sources. The structure of primary energy production and consumption was presented on the charts below: Source of data: Central Statistical Office Source of data: Central Statistical Office III. Renewable Energy Sources (RES) in Poland Due to the large area of agricultural terrains, Poland has a great potential to use renewable energy. The main renewable energy source in Poland is biomass. Hydro- and wind energy have also great potential and their share is increasing steadily. Production and consumption of energy from RES In 2011 production of energy from renewable sources accounted for 11.2 percent (325.5 PJ) of the total primary energy production (2,906.5 PJ). Among all renewable energy sources included in the energy balance, the highest share was constituted by the solid biomass (85.57 percent). The following shares were: liquid biofuels (5.54 percent), hydro- energy (2.58 percent), wind energy (3.55 percent), biogas (1.76 percent), municipal wastes (0.41 percent), heat pumps (0.29 percent), solar irradiation (0.13 percent) and geothermal energy (0.16 percent). The structure of energy production in 2011 form RES was presented on the chart below. Source of data: Central Statistical Office Consumption of renewable energy carriers in 2011 was 346.3 PJ; it was higher that production due to imports of bio-components for bio-ethanol and biodiesel production. The increasing usage of energy from renewable sources may be illustrated by the change in number of installations using renewable energy sources and their installed power. The recent changes of number of installations for electricity production from RES are presented in the table 1; table 2 presents changes in installed power. Table 1 - Number of installations for electricity production from RES in 2006 – 2011 Type of RES 2006 2007 2008 2009 2010 2011 Biogas 74 87 103 125 144 149 Biomass 6 7 11 15 18 19 Wind 104 160 227 301 413 453 Hydro-energy 684 694 710 724 727 737 Photovoltaic 0 0 0 1 3 4 Co-Firing N/A N/A 28 38 41 42 Total 868 948 1,079 1,204 1,346 1,404 Source: Energy Regulatory Office: http://www.ure.gov.pl/ Table 2 - Installed power (MW) from RES in 2005 – 2011 T MW] ype of RES Power [ 2005 2006 2007 2008 2009 2010 2011 Biogas 32.0 36.8 45.7 54.6 71.6 82.9 95.7 Biomass 189.8 238.8 255.4 232.0 252.5 356.2 309.7 Wind 83.3 152.0 287.9 451.0 724.7 1,180.3 1,489.7 Hydro-energy 922.0 931.0 934.8 940.6 945.2 937.0 949.0 Total 1,227.1 1,358.6 1,523.8 1,678.2 1,994.0 2,556.4 2,844.1 Source: Energy Regulatory Office: http://www.ure.gov.pl/ The chart below shows changes in installed power from different types of RES in 2005 – 2011 Source of data: Energy Regulatory Office: http://www.ure.gov.pl/ 1. Biomass Poland has a huge potential of biomass production as it has 1.6 million ha of agricultural land utilized for biomass production. Forestry biomass is also widely available as the forested area constitutes 29.1 percent of Poland’s territory (which is over 9 million ha). In Poland, the different types of biomass are used for other purposes: - Forestry biomass (e.g. fuel wood, wood wastes, pellets, briquettes) is used for heat production, both in households and power plants, - Crops and rapeseed are used for bio-components production, - Agricultural by-products (e.g. straw and other plant parts which cannot be used for food production) and energy crops are used for biogas production. According to the data provided by the Institute of Renewable Energy, the real economical potential of biomass in Poland is estimated at the level of 600,168 TJ in 2020; however, the market potential is estimated at 533,188 TJ. This market potential is constituted from various types of biomass: - solid waste (ca. 149,338 TJ), - wet wastes (designated for biogas production – ca. 72,609 TJ), - firewood (24,452 TJ) and energy crops (286,718 TJ). The latest data shows that in 2009 biomass production were at the following levels: - solid biomass (217,302 TJ), liquid biofuels (17,847 TJ), biogas (4,104 TJ) and municipal wastes (29 TJ). As the evaluation of the Ministry of Agriculture and Rural Development suggest, in 2009 there were imported from the third countries around 800,000 tons of biomass for energy purposes while in 2010 it was almost twice that much, ca. 1,5 million tons of biomass. (Source: http://www.pigeo.org.pl) In recent years, usage of biomass as renewable energy source has been gaining in importance. The table and chart below present the rising trend in biomass production. Table 3 - Solid biomass production 2005-2010 [TJ] 2005 2006 2007 2008 2009 2010 Solid biomass production 174,431 181,108 184,917 198,401 217,302 245,543 Source: Central Statistical Office Source: Central Statistical Office According to the Energy Regulatory Office, in 2011 in Poland there were 19 installations using biomass as a raw material for energy production. The total installed power was 393.1 MW. In Poland usage of biomass for energy purposes is increasing. The power stations make investments in biomass. At the end of January 2012 in Szczecin Power Plant the biomass boiler started to operate. Its heat capacity is 183 MW. The installment will use almost 700,000 tons of biomass annually. Another company, GDF Suez, is building in Polaniec Power Plant the biomass boiler, which capacity will be 205 MW. (Primarily, the plan assumed 190 MW but during the first stage of investment the capacity was increased to 205 MW). In boiler both, the solid biomass and agricultural biomass (mainly straw pellets) will be burned. The investment is expected to become operational in December 2012. Although usage of biomass for energy purposes is gaining in importance, there are still some barriers on the Polish market, e.g. lack of subsidies for energy crops cultivations or lack of simple support system for common usage of individual biomass installations (small heat plants and heat and power plants). Another important issue is the lack of long-term predictability in the current support system for electric energy production from renewable energy sources and cogeneration. Combined heat and power (CHP) Combined heat and power is more and more popular in Poland. Electricity production in CHP is increasing fast in Poland. Within the last 5 years the amount of electricity produced from cogeneration has over tripled as data from Central Statistical Office shows. In 2010 approximately 5,600 GWh of electricity was produced in CHP. As the Energy Regulatory Office claims, it was 20 percent up compared to the previous year. Fuel pellets market in Poland The latest available data on pellet production in Poland shows that in 2009 there were 25 pellet producers in Poland. Their annual production capacity in 2009 was 640,000 tons. Pellet production in 2009 was 410,000 tons, consumption – 230,000 tons and export – 180,000 tons. Fuel pellets market is increasing in Poland. In March 2012 the Fiten – Greenargo will launch its new pellet manufacturing plant in Tulowice. The plant will produce 30,000 tons of pellets per year. The main raw material used for pellet production is to be corn straw. By 2015 the company wants to increase production to 100,000 tons of pellets per year by building more plants. (Sources: www.komunalny.home.pl/archiwum/?mod=tekst&id=11427; www.wnp.pl/odnawialne_zrodla_energii/fiten-rusza-z-nowym-zakladem-pelletu,163007_1_0_.html) 2. Biofuels Fuel sector in Poland - overview According to Energy Regulatory Office, in Poland two largest fuel producers, PKN Orlen and Lotos Group are responsible for wholesale of about 75 percent of fuels. Retail sale of fuels is done at the petrol stations. In Poland there are approximately 6,750 petrol stations. Most of it belongs to PKN Orlen (about 1,700 petrol stations). Second biggest polish operator is Lotos Group which owns about 300 petrol stations. In Poland, there are over 1,350 petrol stations that belong to foreign companies (BP: about 400; Shell: over 380; Statoil: about 300; Lukoil: about 110 and Neste: over 100). There are also about 3,200 petrol stations that are owned by independent operators. Biofuels – policy and market situation In accordance with the National Renewable Energy Action Plan for Poland, to achieve a target of 10 percent share of energy from renewable sources in transport sector by 2020, there were stated National Indicative Targets for next year (default numbers presented in the table 4). Table 4 - National Indicative Targets on biofuels for transport sector in Poland Year 2008 2009 2010 2011 2012 2013 2020 National Indicative Target [%] 3.45 4.60 5.75 6.20 6.65 7.10 10 Source: Central Statistical Office The target for 2012 was set at 6.65 percent and for 2013 at 7.10 percent. However, in May 2011, the regulation amending the Fuel Quality Monitoring and Control Act entered into force, which initiated the possibility to use the reduction constant and lower National Indicative Targets in 2012 and 2013. The reduction constant was set at 0.85, which means that the lowered targets are: 5.65 percent for 2012 and 6.04 percent for 2013. To use those lowered targets, companies must prove the usage of at least 70 percent of bio-components which meet the criteria specified in the regulation (bio-components must stem from agricultural feedstock cultivated at the area of State that belong to the European Economic Area (EU or EFTA). Currently, it is not easy to assess whether the fuel companies would chose to fulfill the obligation to sell the fuels form renewable energy sources at the standard or the lowered level due to requirement on origin of feedstock. In February 2012 the amended regulation on quality requirements for liquid fuels entered into force. The regulation allows usage of B7 (oil with 7% of esters).The B7 biofuel should facilitate the achievement of the National Indicative Targets in upcoming years. Also, Ministry of Economics is working on the draft of the regulation amending the law on the monitoring and control of fuel quality; the draft includes part concerning the possibility of selling the E10 (gasoline with 10% of ethanol) in Poland, even though there is still no EU norm on the E10 fuel. The draft is to be given for the public consultation in the first half of 2012. The objective of that regulation is to implement the Fuel Quality Directive (2009/30) into the Polish law. The government is currently working on regulation amending the Fuel Quality Monitoring and Control Act, which will regulate the issue of introduction of the bio-components certification system. The current situation of domestic bio-components producers is not favorable, to large extent due to high costs of feedstock, tough competition with foreign producers, lack of complex support system for development of the sector, gaps in legal acts concerning taxes and excise duty, international trade and classification of commodities but also problems with financing the investment in its early stages. (Source: Presentation “Domestic biofuels market in light of amendments to the Fuel Quality Monitoring and Control Act. The upcoming challenges for the bio-components producers” by Adam Stępień, the Director of National Biofuels Chamber. International Conference “Renewable energy sources as a future of modern economy”, Warsaw, September 22-23, 2011.) Biofuels production and consumption In recent years an increasing trend in biofuels production and consumption can be seen. Consumption is rising significantly faster than production, which means that much of the lacking bio-components must be covered by the increased imports. The figures confirming trend in biofuels production and consumption were presented in the tables 5 and 6. Table 5 - Biodiesel balance in 2006 – 2010 [tons] Biodiesel 2006 2007 2008 2009 2010 tons Production 89,126 47,447 263,729 364,832 379,802 Import 142 0 94,094 151,535 397,689 Export 51,528 19,440 0 8,343 13,060 Consumption 39,022 27,900 350,415 510,416 760,963 Source: Central Statistical Office Table 6 - Bio-ethanol balance in 2006 – 2010 [tons] Bio-ethanol 2006 2007 2008 2009 2010 Tons Production 119,261 92,679 92,088 127,344 152,799 Import 2,232 22,392 113,376 136,873 118,027 Export 33,302 1,509 400 0 1,450 Consumption 86,135 11,687 198,158 264,297 266,285 Source: Central Statistical Office Production and consumption of biofuels were also presented graphically on the charts. Source: Central Statistical Office Source: Central Statistical Office The preliminary data on 2011 indicates that biofuels production dropped in 2011 compared to 2010; however, biofuels consumption was higher. The Indicative Target for Poland for 2011 was 6.2 percent and it was not easy to meet that target with the then qualified types of blending (E5, E85, B5, B20 and B100). Therefore, PKN Orlen sold not cost-effective B100 to increase the consumption of fuels from renewable sources and meet the target. Not meeting the Indicative Targets would mean for the companies severe fines. Since February 2012 usage of B7 (instead of B%) is allowed in Poland. Feedstock In Poland bio-ethanol is made mainly form cereal (rye and wheat) and from corn. Esters for biodiesel production are made from rapeseed. According to the analysis performed in the Institute of Soil Science and Plant Cultivation in Puławy (IUNG PIB), the area that can be allocated to 2020 for bio-components production, without harming food production, is 0.6 million hectares of cereals for bio-ethanol production and 0.4 million ha for production of rapeseed for biodiesel. Biofuels facilities in Poland In 2011, in Poland there were registered 13 bio-ethanol producers (15 plants) and 20 producers of esters. The tables below list the bio-components producers registered by the Polish Agricultural Market Agency (ARR). The tables contain also the annual production capacity potential of the plants. Table 7 - Bio-ethanol producers and production capacity Annual production No Name Localization capacity [million l] [MT] 1 AKWAWIT-POLMOS S.A. Leszno 95 74,980 2 AKWAWIT-POLMOS S.A. Wrocław 70 55,249 3 Destylacje Polski Sp. z o.o. Oborniki 150 118,390 4 BIOAGRA S.A. Nysa 140 110,497 5 Destylarnia SOBIESK Starogard I Gda 70 55,249 ński 6 PHP Wiesław Wawrzyniak Niedźwiady 50 39,463 7 Polski Koncern Spirytusowy Sp. z o.o. Ińsko 45 35,517 8 BIOETANOL AEG Sp. z o.o. Chełmża 19 14,996 Nowa Wieś 9 BIOETANOL AEG Sp. z o.o. W 20 15,785 ielka 10 Komers International Franciszek Madry Straszyn 32 25,257 11 SOLANUM Sp. z o.o. Kutno 20 15,785 12 ORTUS Przedsiębiorstwo Obrotu Paliwami Lenarty 16.8 13,260 Wielkopolskie Zakłady Farmaceutyczne Murowana 13 BIO-WIN S.A. Gośli 13 10,260 na 14 Podlaskie Gorzelnie SURWIN Sp. z o.o. Suchowola 12 9,471 15 WIRASET Promna 11 8,682 TOTAL 763.8 602,841 Source: Agricultural Market Agency Table 8 - Biodiesel producers and production capacity No nual production capacity Nam Ane [million l] [MT] 1 BIOAGRA-OIL S.A. 226 198,944 2 WRATISLAVIA - BIO 170.087 149,724 3 BIOPALIWA S.A. 120 105,634 4 LOTOS Biopaliwa Sp. z o.o. 113.25 99,692 5 Rafineria Trzebinia S.A. 110 96,831 6 EUROSERVICE ZPT 100 88,028 7 PPHU AS- GOLD 50 44,014 8 AGROPIN Sp. z o.o. 25 22,007 9 JK EKO-ENERGY Sp. z o.o. 17 14,965 10 BIOESTRY Sp. z o.o. 10 8,803 11 ALEKS-FRUIT Sp. z o.o. 10 8,803 12 SOLVENT WISTOL S.A. 6 5,282 13 POLMAX POLSKA S.A. 4 3,521 14 PPHU GES 1.5 1,320 15 PHP KAREX 0.75 660 16 Zaklad Doswiadczalny Instytutu Zootechniki 0.075 66 17 Krzysztof Boguszewski 0.024 21 18 Firma U-H Krzysztof Kosalka 0.01104 10 19 Podlaski Osrodek Doradztwa Rolniczego 0.0047 4 20 Zdzislaw Nosek 0.00079 0.7 TOTAL 963.7 848,330 Source: Agricultural Market Agency 3. Biogas Polish biogas sector is growing very fast. In 2011 there were 144 biogas plants with the capacity of 96 MW. The updated data provided by Energy Regulatory Office (URE) shows that at the end of February, 2012 there were 171 biogas plants (electrical capacity: 103.5 MW). Most of the biogas plants are relatively small. The existing biogas installations in Poland are designed to produce electricity in combination with heat. Raw materials In Poland most of the biogas is produced sewage sludge (over 50 percent) and landfill gas (almost 40 percent). The remaining part of biogas is produced from other feedstock (e.g. energy crops, plant and animal wastes, animal production and plant production wastes). The statistical data on biogas production in 2006-2010 was presented in the table and chart below. The biogas sector is developing fast in Poland. At the same time, the structure of shares of various feed stock for biogas production is changing. In recent years, biogas production from agricultural feedstock is gaining in importance. In accordance with the Agricultural Market Agency, which is responsible for registering the agricultural biogas producers, as of March 12, 2012 there were 22 installations (installed electrical capacity: 23.7 MW) producing biogas from agricultural feedstock whereas at the end of 2010 there were only 8 of them. Table 9 - Electric energy production from biogas in 2006 – 2010 by type of feedstock [GWh] 2006 2007 2008 2009 2010 Total production 160,1 195,2 251,6 319,2 398,4 landfill gas 92 113,6 148,4 174,8 219,9 sewage sludge 66,7 79,5 94,9 122,7 132,4 Other 1,5 2,1 8,3 21,7 46,1 Source: Central Statistical Office Source: Central Statistical Office Table 10 - Installed power in biogas in 2006 - 2010 [MW] 2006 2007 2008 2009 2010 Biogas – total 33 40 52 68 81 landfill gas 25 29 31 38 44 sewage sludge 7 10 19 24 31 Other 1 1 2 5 6 Source: Central Statistical Office Development of biogas sector – policy The general directions for development of biogas sector in Poland are included in the following strategic documents: Polish Energy Policy until 2030 (PEP 2030) Guidelines for the development of agricultural biogas plants in Poland in 2010-2020 National Renewable Energy Action Plan (NREAP) The PEP 2030 sets out the need to implement directions on construction of agricultural biogas plants, assuming that on average one biogas plant in each municipality should be created by 2020. To meet the assumptions and create conditions for the implementation in Poland around two thousand of agricultural biogas plants by 2020, the document Guidelines for the development of agricultural biogas plants were created. According to the principles included in the document, in most of the rural municipalities, which are in hold of appropriate amounts of waste biomass, one biogas plant with an electrical capacity of about 0.5-1 MW may be developed. In the NREAP it is assumed that by 2020 the installed electrical capacity of biogas plants (including the installation on wastewater treatment plants, landfills and agricultural biogas plants) is to be 980 MW. It also assumes electricity production at the level of 4,018 GWh per year by 2020. Difficulties to biogas development In Poland biogas investments often encounter various protests. Many investments in biogas plants cannot be carried out as investors do not get permission for the construction. There is strong resistance from the society – local inhabitants and communities or ecologists. They claim the biogas investments will result in bad smell from biogas production, water and arable land contamination, decrease in the land prices or lowered chances for agro-tourism development. 4. Hydro-energy In Poland the terrain is mostly lowland which is not favorable for construction of large hydropower plants. Nevertheless, it is water which still has a significant share in electricity production from renewable sources. In 2010 it was 26.8 percent. Given the hydrological conditions, the development of hydropower sector in Poland is associated mainly with small hydroelectric power stations. According to the data provided by Energy Regulatory Office, at the end of 2011 there were operating 737 hydro-electric power stations; their installed electric capacity was ca. 946.3 MW. Most of them are small hydroelectric power stations. The number of those small power plants is increasing steadily. The revised data by Energy Regulatory Office shows that as of March 2012 there were 746 small hydro plants (electric capacity: 951.4 MW). (Source: http://www.zielonaenergia.eco.pl/index.php?option=com_content&view=article&id=164:stan-rozwoju-energetyki- wodnej-w-polsce-i-na-wiecie&catid=50:woda&Itemid=216 http://www.ure.gov.pl/uremapoze/mapa.html) The statistical data on installed power and electricity production from hydro-resources was showed in the tabled 10 and 11. Table 11 - Installed power in plants using renewable energy sources in 2006 - 2010 [MW] 2006 2007 2008 2009 2010 Hydro-power plants 925 922 929 932 936 plants with installed power < 1 MW 72 72 74 77 78 plants with installed power from 1 MW to 10 MW 181 178 183 184 185 plants with installed power > 10 MW 672 672 672 672 673 Source: Central Statistical Office According to the NREAP, the planned installed power in 2020 is 1,152 MW, out of which: - small hydro stations < 1MW : 142 MW; - hydro stations from 1 MW to 10 MW : 238 MW; - Hydropower plants > 10 MW : 772 MW. Table 12 - Electric energy production from hydro-resources in 2006 - 2010 [GWh] 2006 2007 2008 2009 2010 Hydro-electricity production 2,042.3 2,352.1 2,152.2 2,375.1 2,919.9 plants with installed power < 1 MW 247.9 306.3 290.2 292.2 516 plants with installed power from 1 MW to 10 MW 566.6 658.1 605.4 627.9 667.2 plants with installed power > 10 MW 1,227.8 1,387.7 1,256.6 1,455 1,736.7 Source: Central Statistical Office According to the NREAP, hydroelectric potential in Poland is relatively small. The theoretical potential is estimated at 23 TWh per year, the technical potential at 12 TWh per year, and economic potential at 8.5 TWh per year. Country’s hydroelectric potential is distributed unevenly. About half of this potential (6,177 GWh per year) is attributed to the Vistula River; its right bank tributaries, including the Dunajec (814 GWh per year), San (714 GWh per year) and Bug (309 GWh per year) also have a huge potential. Hydroelectric potential of the Oder is much lower and is estimated at approximately 10 percent of total capacity. 5. Wind energy Wind energy sector is currently developing most dynamically among all renewable energy sources in Poland. According to Energy Regulatory Office, at the end of 2011 there were in Poland 526 licensed sources producing wind energy with the total installed power attaining 1,616.4 MW. The number of wind energy installations is growing fast. The data from September 2011 shows that than there were 484 licensed sources producing wind energy with the installed power of 1,489 MW. In 2011 there were existing 59 wind farms in Poland and 10 were under construction. The statistical data on development of wind energy sector was presented in the tables 13 and 14 and graphically on the chart. Table 13 - Installed power in wind energy in 2006 - 2010 [MW] 2006 2007 2008 2009 2010 Installed power [MW] 172 306 526 709 1,108 Source: Central Statistical Office Table 14 - Electric energy production in wind installations in 2006 - 2010 [GWh] 2006 2007 2008 2009 2010 Electric energy production [GWh] 256.1 521.6 836.8 1,077.3 1,664.3 Source: Central Statistical Office Source: Central Statistical Office The best conditions for the development of wind energy sector are at the northern and central part of Poland. In the NREAP the following parts of Poland were mentioned to be particularly preferable for wind energy investments: - The Baltic coast, especially in its eastern part, - North-eastern part of Poland (around Suwalki and Gołdap) - Open areas of Warmia, Mazury and Pomerania, - South Polish mountainous areas (mainly Podkarpacie and Lower Silesia). The National Renewable Energy Action Plan envisages that in 2020 the total installed power in wind energy will be 6,650 MW, out of which: on-shore wind farm: 5,600 MW, off-shore wind farm: 500 MW and small installations in wind energy: 550 MW. The total electric energy production forecasted in the NREAP is 15,210 GWh. Challenges for wind energy sector Polish wind energy sector is facing many challenges. The main problem for the Polish sector of wind energy is the issue of difficulties with obtaining the technical conditions for connection to the network grid and defining the reasonable cost of the connection. Other problems concern: poor infrastructure in rural areas, lack of proven methods to avoid conflict with the protection of the landscape or a long period to obtain the required permits. Many problems concerning obtaining permits for the construction and very long administrative procedures are due to the lack of local development plans and difficulties with validation of the environmental impact studies of the planned investments. 6. Solar energy In Poland, solar radiation density on a horizontal plane is ranging from 950 to 1,250 kWh per m2 annually and it is distributed unevenly throughout the year. Approximately 80 percent of the total annual insulation is received during six months in spring and summer – from April to September. In Poland, the most favorable areas in terms of solar radiation is the southern part of the Lublin province and the central part of the country; annual irradiation is ranging there from 1022 to 1048 kWh per m2. The area receiving low sunlight is the north coastal strip. Currently, solar energy is used in Poland mainly as a source of heat through solar collectors. Solar installations are mainly small and located at the top of the buildings. Solar collectors are commonly used in houses or public buildings. According the Internet portal ioze.pl, the total area of solar collectors is estimated at 1,500 m2. Statistical data on heat production from solar energy is presented in the tables 15 and 16. Table 15 - Heat production in solar collectors in 2006 - 2010 2006 2007 2008 2009 2010 Production [TJ] 11 15 54 83 100 Source: Central Statistical Office Direct production of electricity using photovoltaic panels in Poland is marginal at the moment. Photovoltaic panels, for economic reasons, are used only on a small scale. However, the National Renewable Energy Action Plan assumes an increase in installed power in photovoltaic up to 3 MW by 2020. As the data provided by Energy Regulatory Office shows, at the end of 2011 in Poland there were 6 photovoltaic installations with the total capacity of 1.124 MW. 7. Geothermal energy In Poland, the temperatures of geothermal resources available for use for heating purposes are relatively high. The geothermal waters generally occur in Poland at depths from 700 to 3,000 m; their temperatures range from 20 to 100 degrees C. The most suitable seems to be the use of geothermal waters within the Podhale Basin and the district Grudziądz-Warsaw and Szczecin. So far in Polish operates eight geothermal district heating companies. Statistical data on heat production is shown below. Table 16 - Heat production from geothermal energy in 2006 - 2010 2006 2007 2008 2009 2010 Production [TJ] 535 439 531 600 563 Source: Central Statistical Office Due to the fact that Poland is situated outside the areas of modern tectonic and volcanic activity, the usage of deep steam to produce electricity is currently uneconomical in Poland. It is confirmed by the guidelines in the NREAP, which assumes no electricity production from geothermal resources by 2020. (Sources: http://www.mae.com.pl/odnawialne-zrodla-energii-energia-geotermalna.html http://www.pga.org.pl/geotermia-zasoby-polskie.html) References: Internet Portals: - Energy Regulatory Office: http://www.ure.gov.pl - Central Statistical Office: http://www.stat.gov.pl - Polish Economic Chamber of Renewable Energy: http://www.pigeo.org.pl/ - Agricultural Market Agency: http://www.arr.gov.pl/ - Polish Wind Energy Association: http://psew.pl - http://ioze.pl - http://www.wnp.pl - http://www.e-petrol.pl/ - http://www.mae.com.pl/ - http://www.pga.org.pl/ - http://www.zielonaenergia.eco.pl - http://www.komunalny.home.pl Legal Acts: - The Long-Term Project for the Promotion of Biofuels or Other Renewable Fuels (2008-2014), Ministry of Economics - Polish Energy Policy until 2030 (PEP 2030) - Guidelines for the development of agricultural biogas plants in Poland in 2010-2020 - National Renewable Energy Action Plan (NREAP) Presentations: - “Domestic biofuels market in light of amendments to the Fuel Quality Monitoring and Control Act. The upcoming challenges for the bio-components producers” by Adam Stępień, Director of National Biofuels Chamber. International Conference “Renewable energy sources as a future of modern economy”, Warsaw, September 22-23, 2011.
Posted: 26 January 2013

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