WindWind PowerPowerin Poland EnergiaEnergia WiatrowaWiatrowa ww PolscePolsce 2010 ISSN 1643-4692 Wind Power in Poland 2010 Table of Contents Wind energy market in Poland and its prospects to 2020 . 4 Map of Wind Farms in Poland . 8 Publisher: Financing options for wind projects in Poland . 9 BiznesPolska Media sp. z o.o. tel.: 022 651 9855; fax: 022 842 0021 ul. św. Bonifacego 92 lok. 13; New legislation triggers changes for wind energy developers. 10 02-920 Warsaw Research: Magdalena Adamczyk Wind Energy Developers in Poland. 12 [email protected] Advertising: Agnieszka Sawka Wind Sector – News Briefs. 23 [email protected] President: Thom Barnhardt [email protected] Design and layout: Sławomir Parfianowicz, [email protected] Druk: Miller Druk Ecovation Energy The Power to Deliver International Wind Energy Consultancy Company contact us: Renaissance Business Centre, ul. św. Mikołaja 7, 50-125 Wrocław tel +48 (0) 71 712 42 60 e-mail: [email protected] www.ecovationenergy.com Wind Power in Poland Business Directory 2010 Wind energy market and Katarzyna Michał owska-Knap, in 2009 wind energ y ac counted f or just strong leader in Poland with a 29% market Paweł Regulski, Grzegorz W iśniewski 0,6% of the total electricity consumption in share, though the significance of other sup- Institute for Renewable Energy (IEO) Poland - with only 0,1% of its technical po- pliers is increasing steadily. There are espe- tential utilized. cially big opportunities for manufacturers According to URE data at the end of 2007, In 2009 the following major wind farms offering wind turbines f or lower wind around 724 MW of wind power capacity were successfully developed: K arlino (69 speeds. was installed in P oland. T he pr oduction MW installed by I berdrola), K amień (32 In addition to the abovementioned proj- amounted to 836 GWh of electricity. Most MW), Łęki Dukielskie (32 MW installed by ects, which comprise around 2MW W TGs, of the capacity is installed in the 30 biggest Martifer), Sławno (50 MW by R P Global), also projects using smaller units c oming 4 Fig. 1: Installed capacity and wind energy production in Poland in 2001-2009. wind farms located mainly in the northern Jeleniewo (41 MW by RWE). At the end of mainly from repowering are quite popular part of P oland. Sinc e 2005 the shar e of the y ear also the first 22 MW sta ge of in Poland. Small and locally -owned enter- wind energy in the total energy production EDP’s Margonin wind far m offici ally prises or private individuals are usually op- from Rene wable Energ y Sour ces has in- started producing electricity. (see Fig 1) erators in such cases; however , these creased steadily - in 2007 it was over 9% Poland is becoming a promising market projects do not c onstitute a sig nificant (472 GW h) and in 2009 mor e than 13%. for all the major wind turbine manufactur- share of the electr icity produced by wind Despite the fast development of the sector, ers. At the end of 2009 Vestas still was the turbines in Poland. 2010 Business Directory Wind Power in Poland in Poland its prospects to 2020 Albeit from a very low base, the average annual g rowth rate of power capacity of wind energy was ver y high in 2000-2009. The rate of growth, however, was er ratic, depending on various and difficult-to-pre- dict factors. Therefore, despite the high growth rate and relatively large amount of newly-built installations, existing power capacities of wind energy are not impressive in compar- ison with the overall dynamic development of the wind power industr y in the EU . Poland was one of the f ew c ountries in which capacity installations in 2009 wer e actually lower than in 2008. The year 2010, however, will be a y ear of sig nificant in- creases in capacity, as man y investments uncompleted during 2009 come to market. The amount of c ompleted pr ojects in Poland appears to be very low when c om- 5 pared with the ambitious plans of wind de- velopers. According to application for grid connection terms, grid operators estimate investors plans at mor e than 70,000 MW. However this type of estimation is de fi- nitely confusing - it’s enough to mention that in 2004 nearly 9,500 MW was “planned”, but less than 10% was finalized. Thus the information coming from devel- opers has t o be tr eated with a “ grain of salt”, as the actual pr ojects completed will be much smaller in the next few years. According to estimations of the Institute for Renewable Energy less than 10% of con- Fig. 2: Market shares of wind turbine suppliers in Poland at the end of 2009. Wind Farm Civils International Wind Farms Civil Contractor contact us: Renaissance Business Centre, ul. św. Mikołaja 7, 50-125 Wrocław tel +48 (0) 717 124 404 e-mail: [email protected] www.windfarmcivils.com Wind Power in Poland Business Directory 2010 Fig. 3 Increase of power capacity of wind power plants in Poland by 2020 Source: prepared by IEO and PWEA sidered pr ojects ma y be c ompleted until issuing connection terms - and is not r e- (POIiS), which will be available from 2013, 2015, the rest should be treated only as un- fundable. This regulatory solution aims to with disposal of €352 million in total for in- developed concepts. In many cases a devel- remove speculative pr actices that ha ve vestments in pr oduction of g reen power. 6 oper obtains only pr operty rights to the blocked g rid access; however the amend- Subsidies, which can be ob tained this way, ground. Nevertheless, data from operators ments have already been cr iticized by in- would considerably improve profitability of quite clearly shows the large scale of activi- vestors and industr ial organiz ations as projects. However first tender has been an- ties and interest in Poland - over 100 enti- potentially inefficient, nounced with delay and closed in last April ties ar e actively oper ating on the P olish Also numerous other bar riers for wind (POIiS topic 9.4) proved, that demands for wind energ y market and the amount of power development are reported by devel- subsidies significantly exceed financial ca- project concepts can be estimat ed at 500. opers. The large amounts of wind farm con- pabilities of the Pr ogramme. Among 120 The majority of these companies adopt an cepts in some areas raise misgivings about applications concerning renewable energy “operations” model, which is known on the the possible ne gative impact on the en vi- (3150 million PLN was applied f or; but German market as “develop and sel”l - the ronment, as well as ammunition to local op- available sum was 742 million PLN), 86 project is developed to a certain stage (usu- ponents. W ind energ y has been usually projects concerned wind energ y. In addi- ally building per mit) and then sold (as a met with enthusiasm by municipal author- tional t enders announc ed in A pril 2010, whole or c ertain part) to a f inal investor ities - until r ecently - because of the ex - Ministry of Economy (the institution cur- (usually to a larger developer). T hus, dur- pected financi al c ontributions t o local rently responsible for action 9.4) allocated ing the last f ew years market of tr ading budgets. Legal regulations have created an for RES only 195 million PLN. projects has been active. opportunity to impose on the owner of the The future of the wind power sect or in The concentration of wind farm concepts wind farm a property tax of 2% of the in- Poland after 2010 will depend mainly on in some geographical areas is resulting in vestment value, which would be very signif- final decisions about the means of imple- growth problems, blocking further develop- icant income to a local municipality budget. menting the EU Climate Package, including ment of man y (even well-pr epared) proj- After interpretations of the Ministry of Fi- new directive 2009/28/EC about the pr o- ects. I t concerns mainly the lack of g rid nance, which limit the basis of the property motion of the use of r enewable energ y connection possibilities. In man y ar eas, tax t o the f oundation and t ower of the sources (http://eur-lex.europa.eu/LexUriS- particularly in northern Poland, all the con- wind turbines, local authorities’ skepticism erv/LexUriServ.do?uri=OJ:L:2009:140:001 nection capacity is cur rently blocked by a and r esistance t o wind energ y pr ojects 6:0062:EN:PDF). Especially important will large amount of wind farms which have al- seems to be growing. Cr itics are arguing be preparation (by Ministr y of Economy) ready received grid connection terms. This that wind energ y has negative impacts on of the National Renewable Energy Action situation will likely change, because of the on the landscape and pot entially hur ts by 2020, required by the dir ective and in- recent amendments to the Energy Law, en- tourism income. cluding the range of commitments for elec- tering into force at the beginning of March, Many wind project owners have delayed tric power pr omotion fr om r enewable 2010. It mandates advance payments (up construction until the star t of financing sources. Initi al analyses in that ar ea are to 3 million PLN, 30 PLN per MW) for con- from subsidies of the EU’s Operational Pro- covered by the document “P olish Energ y nection charges, which must be paid before gramme Infrastructure and En vironment Policy until 2030” (PEP2030) and seem to 2010 Business Directory Wind Power in Poland Tab.1 Wind energy potential in Poland, estimated by IEO require substantial involvement of the gov- ernment (especi ally in pr eparation of Onshore Offshore power grid development programme), Capacity Energy Capacity Energy Also to be mentioned is the substanti al (GW) (TWh) (GW) (TWh) potential of offshor e wind energ y.