This report provides an analysis of the renewable energy sector in Poland and five other eastern and central European countries—Czech Republic, Romania, Hungary, Slovak Republic, and Bulgaria (ranked behind Poland by their respective energy consumption)—with information on developments through end-2013 and the long-term market outlook. It also includes corporate news for firms including Tauron, GDF Suez, PGE, Energa, Finland’s Fortum, and Polish Energy Partners.
Poland is the largest economy in the region and its energy generation was historically based on coal. This naturally made the country the largest market in the region for green power technologies. Specific features of the country’s Green Certificates support system and the economy’s resilience to recession helped the renewable energy industry avoid most common complications seen in peer countries, in particular Romania, Bulgaria, and Czech Republic. Thus Poland has so far performed satisfactorily in meeting its green energy targets.
Investments in Czech Republic and Bulgaria have lost ground after solar-investment euphoria, and the investors in both countries face tough regulatory adjustments. While in Czech Republic the problems are related to excessive support, in Bulgaria they are broader in nature and are amplified by the problematic functioning of the market. Slovak Republic witnessed a sharp expansion of small- and medium-sized solar projects and is currently trimming down support to avoid excessive expansion. Hungary is the slowest of the six countries to increase its renewable electricity production, although actually it placed its bet from the very beginning on generating more heat from renewable resources in order to meet the overall green energy target.
• In corporate news, Polish power utility Tauron has launched its fourth wind farm in northwest Poland. GDF Suez has inaugurated the Green Unit biomass plant, the world's biggest power plant entirely fuelled by biomass.
• Polish power utilities PGE and Energa have agreed to buy a wind farm stake in Ibedrola from the EBRD. Finland's Fortum has suspended its investments in Poland until the government clarifies the sector’s legal framework. Polish Energy Partners (PEP) have signed an agreement with the EBRD for a loan to develop two wind farm projects.
• Over 2010–20, Poland plans to increase the generation of renewable electricity by 21.8TWh. Out of this, 12.9TWh is to be generated by wind farms and 8.2TWh from biomass plants. With 2.5GW installed in its wind farms, Poland exceeded the 2GW target at end-2012. By 2020, there is however plenty of room for investments up to the 6.65GW target.
Table of Contents
1. Executive Summary
2. Broad Picture – Renewable Electricity in Europe
3. Update – EC Drafts New Guidance Package
4. The markets
4.1.1 Six-country region form heterogeneous, rather small electricity market…
4.1.2 … Which is still likely to consolidate en route to EU internal market formation
4.1.3 Region is still far from an “optimal single-grid area”
4.1.4 More on the Region’s market structure
4.2.1 National Renewable Energy Action Plans (NREAPs)
4.2.2 2010-2020 – 16.8GW new renewable capacities in region
4.2.3 Photovoltaic: end-2012 installed power 62% above target; 11 times above plans in Bulgaria
4.2.4 Wind: end-2012 installed power only 4% above target; 24% expansion above target in Poland
4.2.5 CEZ cautious on new investments, to scale back renewable [wind mainly] plans
4.2.6 The six countries spread differently among sectors their “greening” target set by EU
5.1 IAEA: Poland has made progress toward introducing nuclear power
5.2 Poland down in EY ranking following government’s proposal to adjust support system
5.3 Installed renewable power capacities as of 2013
5.4 Share of renewable energy in Poland at 10.4% in 2011
5.5 Renewable energy generated in Poland in 2012 amounts to 13.94mn TWh…
5.6 … But contracts to only 23% of 2012 figure in Jan-Jul 2013
5.7 Ernst & Young: Poland fails to use 90% of its wind power potential
5.8 Bank DnB NORD sees wind farms investments in Poland totalling EUR 20bn by 2020
5.9 Renewables capacities rise to 4.4 GW at end of 2012
5.10 Polish power utility Tauron launches its fourth wind farm in north-west of Poland
5.11 GDF Suez inaugurates one of world's biggest biomass units in Poland
5.12 Polish power utilities PGE, Energa to buy wind farm stake in Ibedrola from EBRD
5.13 Finland's Fortum suspends investments in Poland till legal framework is clear
5.14 EBRD to provide EUR 58mn loan for Polish Energy Partners' wind farm project
Release Date: Wed, 11 Dec 2013