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Law on climate change in Poland

The Polish system of supporting renewables bases on renewable energy certificates which are granted to entities that generate electricity from eligible energy sources.


RECs are also called “green certificates” and are a mechanism to motivate 

Currently the Polish Ministry of the Industry published on its website the draft of the National Renewable Energy Action Plan - pursuant to the Directive 2009/28/ EC which requires each Member State to adopt such a plan and submit it to the European Commission by 30 June 2010.
industries to increase the amount of power generated from renewable energy sources.

The state regulatory agency (which in Poland is the Energy Regulatory Office - URE) issues green certificates to generators that produce energy from eligible renewable energy sources (solar, wind, geothermal, hydroelectric, waste etc.).

The legal basis for the said system are the provisions of the Law on Energy of 10 December 1997 (consolidated version of 2006 O.J. No 89, item 625 as amended).

The Polish renewable obligation scheme requires entities under its jurisdiction to remit RECs representing a percentage of the electricity they sell into the retail market.

Similar to CO2 allowances, the RECs are traded in a secondary market, and there is in place an exchange market (the Polish Power Exchange www.tge.pl). In lieu of remitting the required RECs, an entity may make an alternative compliance payment. This penalty effectively establishes a cap on the price of the certificates.

 

In order to obtain green certificates, the compliance entities have a possibility, either to generate electricity from an eligible renewable energy source itself, or to purchase certificates on the open market. The second of the above mentioned possibilities is split into two further options, i.e. buying RECs packaged with the underlying electricity or without the underlying electricity.

 

Recent media release from the Polish Ministry of the Industry point out, however, that the Polish scheme of green certificates will be probably in the near future converted into feed-in tariffs system.