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Bioenergy in Rural Poland by MARISA GROENESTEGE

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Bioenergy in Rural Poland by MARISA GROENESTEGE Bioenergy in Rural Poland BY MARISA GROENESTEGE Bioenergy in rural Poland What are the obstacles and opportunities for Dutch companies in the bioenergy sector in rural Poland? By: Marisa Groenestege 4BI, International Food Business 17th of February 2020, Warsaw Thesis coach: Taco Medema ii This report is written by a student of Aeres University of applied sciences (Aeres UAS). This is not an official publication of Aeres UAS. The views and opinions expressed in this report are those of the author and do not necessarily reflect the official policy or position of Aeres UAS, as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of Aeres UAS. And will therefore assume no responsibility for any errors or omissions in the content of this report. In no event shall Aeres UAS be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with this report. iii Preface and Acknowledgments As a part of my graduation phase of the program International Food Business at Aeres University of Applied Sciences and Dalhousie University, I was tasked to write a thesis. The first stage in writing this thesis was the research proposal. After the research proposal was approved, I started my research into the obstacles and opportunities for Dutch companies in the Polish bioenergy sector. As I am currently doing an internship at The Embassy of the Kingdom of the Netherlands in Warsaw, the embassy came with the question of whether there were any opportunities for Dutch companies in the (rural) Polish bioenergy sector. After doing preliminary research, I found a knowledge gap in the sector and also several Dutch companies interested in the Polish bioenergy market. I would like to thank my colleagues at the embassy and the Dutch companies operating in the bioenergy sector for assistance and information on the sector. Several points from the research proposal feedback were incorporated into the final thesis. These changes include in-text citations, sourcing, a connection to the survey questions, the incorporation of the rural context in the sub-questions, a specification and justification of the questioned companies. iv Table of Figures and Tables Figure 1, Seasonal variability of PM concentrations in large urban zones (Lowicki, 2019). ......................... 3 Figure 2, Hard coal and lignite production in Poland, 1930–2015 (Kuchler & Bridge, 2018). ...................... 3 Figure 3, Greenhouse gas emission trends, projections, and targets in the EU (European Environment Agency, 2018). ............................................................................................................................................... 4 Figure 4, Greenhouse gas emissions in Poland and the EU, base year 1990 (European Commission, 2018). ....................................................................................................................................................................... 5 Figure 5, Share of renewable energy as a percentage of gross final energy consumption (European Commission, 2018) ........................................................................................................................................ 5 Figure 6, Development of total primary energy supply from bioenergy in the Netherlands (CBS, 2019). ... 6 Figure 7, Poland energy mix 2018 (Statistics Poland, 2019). ...................................................................... 15 Figure 8, Poland renewable energy mix 2017 (Statistics Poland, 2019). .................................................... 16 Figure 9, Energy from biogas per voivodeship (Iglinski, Buczkowski, & Cichosz, 2015). ............................. 17 Figure 10, Biomass potential distribution Poland (Zaliwski, et al., 2013) ................................................... 18 Figure 11, Poland energy exports and imports (Statistics Poland, 2019). .................................................. 21 Figure 12, Construction periods energy plants (Electrigaz, 2017; Ministry of New and Renewable Energy, n.d.; Association québécoise de la production d'énergie renouvelable, n.d.; Futuren, n.d.; Fickling, 2019). ..................................................................................................................................................................... 27 Figure 13, Main support schemes promotion of renewable energies (Banja, Sikkema, Jegard, Motola, & Dallemand, 2019). ........................................................................................................................................ 32 Figure 14, Share of energy from renewable sources in the EU and Poland (Eurostat, 2019; PolandIn, 2019). ........................................................................................................................................................... 68 Table 1, Interview Respondents .................................................................................................................. 13 Table 2, Sources of biomass waste and their energy potential (Iglinski, Buczkowski, & Cichosz, 2015). ... 17 Table 3, Biomass resources Poland (Flanders Investment & Trade in Poznan, 2019) ................................ 18 Table 4, Energy consumption in the EU and Poland ................................................................................... 19 Table 5, Energy consumption per consumer in rural & urban Poland (Sobczyk, 2018) .............................. 20 Table 6, Renewable energy jobs in Poland (International Renewable Energy Agency, 2019). ................... 20 Table 7, Micro-installations price (Ignaciuk, 2019) ..................................................................................... 24 v Table 8, Comparison of capital expenditures between power plants in Poland (Iglinski, Buczkowski, & Cichosz, 2015). ............................................................................................................................................. 28 Table 9, Production costs of electricity from power technologies in 2020 (Budzianowski, 2011) ............. 29 Table 10, Reference prices 2017 (Cichocki, Mlodawski, & Lewicki, 2017). Using the 03-02-2020 exchange rate of 4.31 PLN/EUR (XE, 2020) .................................................................................................................. 33 Table 11, Maximum installation costs per eligible installation (Ignaciuk, 2019). Using the 02-02-2020 exchange rate of 4.3 PLN/EUR (XE, 2020). .................................................................................................. 34 Table 12, Main characteristics and results of auctions for biogas and biomass in 2018 (Diallo, et al., 2019). ........................................................................................................................................................... 35 Table 13, Results biogas and biomass RES auctions in 2018 (Diallo, et al., 2019). ..................................... 36 Table 14, Price of land in PLN/ha (Borawski, Beldeycka-Borawska, Szymanska, Jankowski, & Dunn, 2019) ..................................................................................................................................................................... 70 Table 16, Estimated values and volumes of 2020 RES auctions (ICIS, 2019). ............................................. 71 vi Table of Contents Preface and Acknowledgments .................................................................................................................... iv Table of Figures and Tables ........................................................................................................................... v Summary ........................................................................................................................................................ 1 Chapter 1. Introduction ................................................................................................................................. 2 1.1 Air pollution in Poland ..................................................................................................................... 2 1.2 Poland’s Energy Production and Consumption ............................................................................... 3 1.3 Climate Goals ................................................................................................................................... 4 1.4 Bioenergy ......................................................................................................................................... 6 1.5 Problem Description ........................................................................................................................ 9 1.6 Research Questions ....................................................................................................................... 11 Chapter 2. Methodology .............................................................................................................................. 12 2.1 What is the status and structure of Poland’s current energy sector? .............................................. 12 2.2 What is the legislation regarding bioenergy in Poland? .................................................................... 12 2.3 What are the development costs of bioenergy plants in Poland? ...................................................
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