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There are no clear clues as regards the evaluation of the future potential prices of energy efficiency certificates in Poland and the correlation between the said price and the substitute fee.

 

 

In the European Commission’s Proposal published on 22 June 2011 for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on energy efficiency and repealing Directives 2004/8/EC and 2006/32/EC {SEC(2011) 779 final} {SEC(2011) 780 final} (COM(2011) 370 final, 2011/0172 (COD) there was mentioned that Poland recently decided to implement a national scheme for the improvement of energy efficiency and a system for tradable energy efficiency certificates.

 

It is noteworthy that despite mandatory character, the rules of the proposal for new energy efficiency directive are extremely flexible:

1) each Member State is empowered to devise its own scheme that best meets the national circumstances while following certain common EU requirements (e.g. same level of ambition, certification of savings),

2) Member Sates have also the possibility to propose alternative energy savings mechanisms that lead to the same results but are not based on obligation on energy companies (cf. Energy efficiency obligation scheme according to the Proposal for new energy efficiency directive – first impressions).

 

Let’s look at certain particulars of the Polish energy efficiency tenders design then.

 

The Law on energy efficiency of 15 April 2011 r. was published in the Polish Official Journal No 94, item 551. The very shape of the regulation creates some sort of problems because the said Law outlines only the general shape of the prospective obligations imposed and their substance will be specified in the implementing acts issued by the Polish Minister of the Economy.

 

Without the said core elements it is very problematic to assess prospects and fundamentals for business opportunities associated with this new specific market.

 

Among the most expected by market participants key implementing measures is the regulation on specific conditions and procedure for public tenders organised by the Polish Energy Regulatory Authority (URE) , and – what even more important – on specific rules for quantifying the obligation to surrender so-called “white certificates”, taking into account the eligibility of the associated costs to be accounted for in the tariffs of energy suppliers.

Last but not least, the concrete amount of the substitute fee is also unknown yet.

The President of the Polish Energy Regulatory Authority (URE) was given the competence to choose, at least once a year, the specific undertakings eligible to be granted energy efficiency certificates. For this purpose URE will be announcing and conducting tenders – separate one for each of the following categories of activities:

 

1) increasing of energy savings among final customers,

2) increasing of energy savings as regards the electricity or heat generators self use,

3) abating losses of electrical energy, heat or natural gas in transmission or distribution.


Pursuant to the new Law tenders will be publicly announced at least two months in advance. The tender notice will determine the value of energy efficiency certificates intended to be issued in a given tender. As a result of such a design it is really difficult to assess the trajectory of the supply side of the energy efficiency certificates. There is also no certainty what value and quantity of “white certificates” will be available in the current and subsequent years of the programme. The only statutory guidelines for URE for determining the volumes of the prospective tenders (save these mentioned above) are (i) the value of certificates issued so far and (ii) the degree of the realisation of the national target in respect of energy savings.

 

The Law further stipulates that the value of energy certificates reserved for the first of the above-mentioned categories of activities (i.e. increasing of energy savings among final customers) shall not be less than 80% of the overall value envisioned to be issued in a given tender. It follows that for the sum of the remaining two “industrial” measures (that is (i) increasing of energy savings as regards the electricity or heat generators self use and (ii) abating losses of electrical energy, heat or natural gas in transmission or distribution) remains 20 % of the total value of the stake.

 

To conclude, it seems that there are no clear clues as regards the evaluation of the future potential prices of energy efficiency certificates in Poland and the correlation between the said price and the substitute fee.