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Law on climate change in Poland

 
Poland is probably the one of the last European countries that apply TGC/quota scheme to promote renewable energies.

 


As the European Commission observed in COMMISSION STAFF WORKING DOCUMENT  of 23 January 2008 r. SEC(2008) 57, The support of electricity from renewable energy sources, Accompanying document to the Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the promotion of the use of energy from renewable sources {COM(2008) 19 final} with premiums, quota/TGC schemes, tendering schemes, tax exemptions and investment support, renewable electricity is normally traded in the electricity market and subject to market prices and conditions.

Since the electricity is sold in the market, the producers participate on the regular electricity market in competition with other producers and this supply will have an influence on the price.

The draft of the National Renewable Energy Action Plan (NREAP) currently published by the Polish Ministry of the Industry on its website (pursuant to the Directive 2009/28/EC) stipulates that potential introduction of fixed tariff (feed-in tariff) for Renewable Energy Sources (RECs) in Poland will not entail worsening of the support that is already in place. Such a change could only be neutral or positive for RECs. The draft of the Polish NREAP further states however that where significant abatements in investment costs occur in some kinds of RECs there would be possible the adoption of adequately lower rates of support for newly planned investments, provided that the rights of investors that already began investment activity are retained.
With feed-in tariffs, however, the renewable electricity is not sold directly in the market. The electricity is paid for through a purchase obligation which is normally put on the system operator. This electricity is shared among the customers and paid for through a fee included in the network tariff. Although renewable electricity which receives a feed-in tariff is not sold directly in the market, this additional supply will have an indirect impact on the market price.

 

The more extensive description of important features and distinctions between different legal mechanisms of supporting RECs, notably feed-in tarifs and TGC/quota schemes can be found in the Communication from the Commission of 7 December 2005 r. COM(2005) 627 final The support of electricity from renewable energy sources {SEC(2005) 1571}.

 

Among mechanisms in place in Poland are also tax incentives such as the exemption of the electricity produced from RECs from excise tax (which currently amounts to 20 PLN per MWh).