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Electricity Price Act: What SMEs should pay attention to
On the Polish energy market, the recent months will be remembered for many reasons. Historically high electricity and natural gas prices have forced changes to a number of established practices. During the crisis, several mechanisms have been created to mitigate its effects—primarily high utility prices. Among other things, a cap on the price of electricity sold to selected end users is being introduced. We now briefly examine whether the Act on Emergency Measures to Restrict Electricity Prices and Support Certain Consumers in 2023 is likely to live up to its name.
Electricity Price Act: What SMEs should pay attention to
Hydrogen regulations headed for public consultation
On 21 October 2022, a draft act to amend the Energy Law and certain other acts was published on the website of the Government Legislation Centre, implementing the Polish Hydrogen Strategy. The proposal aims to create a stable regulatory environment for the hydrogen market in Poland.
Hydrogen regulations headed for public consultation
The electricity market: Prospects for renewable producers after winning an auction
The situation on the energy market has never been so dynamic. Many claim that high energy prices will not allow economic growth to be sustained, and will lower consumers’ standard of living. It would seem that at least generators of electricity from renewable energy sources are happy about the higher energy prices on the market, as they can sell power for more while keeping production costs relatively low. But when these producers participate in the RES auction support system, their situation becomes more complicated than it might seem at first glance.
The electricity market: Prospects for renewable producers after winning an auction
Cable pooling: A solution for a shortage of grid connections, and a way to use energy infrastructure more efficiently?
In Poland, public opinion and the private sector agree that faster development of renewables is needed to free the country from dependence on fossil fuel imports, and to reduce domestic coal-fired generation. The private sector has funds to develop renewable energy, for its own use or to sell to the market. And no one needs to be persuaded that the current high energy prices will reduce the competitiveness of the Polish economy over time. So the will and the funds are there. But the barrier is connecting renewable energy sources to the grid, which is simply losing its capacity.
Cable pooling: A solution for a shortage of grid connections, and a way to use energy infrastructure more efficiently?
Renewable energy sources support system: Prices and volumes for renewables at auctions in 2022–2027
The first draft of the regulation on the maximum amount and value of electricity from renewable energy sources that may be auctioned in calendar years 2022–2027 in Poland was published on 5 July 2022. It is the first time such a regulation covers six consecutive years. This follows from the amendment to the Renewable Energy Sources Act spurred by industry voices asserting that announcing these values further in advance would allow developers to better prepare for the auction and thus offer more competitive prices.
Renewable energy sources support system: Prices and volumes for renewables at auctions in 2022–2027
Bill amending the 10H Act to enlarge the area accessible to onshore wind farms is closer and closer to adoption
In recent months, the wind power sector in Poland has observed the progress of work on a bill to amend the Wind Energy Investment Act and certain other laws. It is much-awaited by the industry, due to the stringent “10H rule” still in force. On 15 June 2022, the Minister of Climate and Environment submitted the bill to the government’s Legal Committee.
Bill amending the 10H Act to enlarge the area accessible to onshore wind farms is closer and closer to adoption
Europe free from Russian gas supplies by 2030
2021 witnessed a record increase in wholesale energy prices (in Poland, by almost 100%) and prices for EU ETS emission allowances (by about 105% compared to 2020). Additionally, a sharp increase in natural gas market prices (in Poland, by 470% compared to 2020) has made energy poverty a common phenomenon in Europe. The European Union has presented a set of tools to temporarily mitigate the effects of rising energy prices. However, the events of recent months, in particular Russia’s full-scale invasion on Ukraine, have shown that alongside the green transition, the EU’s priority should be to become less dependent on Russian fossil fuels.
2021 witnessed a record increase in wholesale energy prices (in Poland, by almost 100%) and prices for EU ETS emission allowances (by about 105% compared to 2020). Additionally, a sharp increase in natural gas market prices (in Poland, by 470% compared to 2020) has made energy poverty a common phenomenon in Europe. The European Union has presented a set of tools to temporarily mitigate the effects of rising energy prices. However, the events of recent months, in particular Russia’s full-scale invasion on Ukraine, have shown that alongside the green transition, the EU’s priority should be to become less dependent on Russian fossil fuels.
Europe free from Russian gas supplies by 2030
Offshore wind energy and planned amendments to the Maritime Areas Act
Companies’ increased interest in offshore wind energy makes the legal regulations in this area a subject of interest for the parliament, which is trying to upgrade the regulations. The latest changes are intended to ensure safety during construction and operation of offshore wind farms.
Offshore wind energy and planned amendments to the Maritime Areas Act
The new EU Battery Regulation
In Europe and worldwide, the battery market is undergoing revolutionary changes. The World Economic Forum predicts that global demand for batteries will be 14 times greater in 2030 than it is today. This means that the number of plants producing them must increase significantly. In 2030, the European Union could account for 17% of the global market demand for batteries. Among other things, this is influenced by the growth of the digital economy, low-carbon mobility, and renewable energy. The number of problems related to battery production and unregulated issues has inspired the European Commission to make decisive changes in European law, the effects of which will be felt not only by the battery industry but also directly by consumers.
The new EU Battery Regulation
Official procedures for limiting natural gas consumption
Over the last few months, the natural gas market in Poland and Europe has been affected by historic price fluctuations, and the situation in Ukraine demands attention to the continuity of gas supplies from abroad. In the context of ensuring security of gas supply to end-users, we point to the potential for introduction of restrictions on natural gas consumption.
Official procedures for limiting natural gas consumption
Onshore wind power in Poland: Bill to amend the 10H Act gains momentum
In recent months, the wind power sector has observed the progress of work on a bill to amend the Wind Energy Investment Act and certain other laws. It is much-awaited by the industry, due to the stringent “10H rule” still in force. The bill is expected to be sent to the Polish parliament in the first quarter of 2022, but the first draft by the Ministry of Development and Technology has already been released.
Onshore wind power in Poland: Bill to amend the 10H Act gains momentum
Polish Hydrogen Strategy for 2030
On 7 December 2021, the Polish government officially announced its Polish Hydrogen Strategy for 2030 with a view to 2040. The announcement came at a perfect time, amid price turbulence on the natural gas market in Europe and growing doubts whether natural gas (of which Europe has too little) is still a reasonable transition fuel for decarbonisation of the economy.
Polish Hydrogen Strategy for 2030