Poland Member Committee

Polski Komitet Światowej Rady Energetycznej

The Polish Member Committee of the World Energy Council has been active since the creation of the Council in 1924, with the only break occurring during the Second World War. In the post-war period until 1997 the Polish Committee was functioning within the the energy ministry and was supervised by the energy ministers. In 1997 the Polish Committee of the World Energy Council was transformed into the self-governing association. The objective of the Polish MC WEC activity is to support the development and sustainable exploitation of national energy resources as well as to represent Polish energy sector in the World Energy Council and to promote its achievements at the World Energy Council forum.

Graduated from the Faculty of Law and Administration and the Post-graduate Intellectual Property Law Studies at the University of Warsaw. In 2005, completed barrister training at Warsaw Bar Chamber. Worked at law firms until 2015. Collaborated with Ernst & Young Sp. z o.o. in 2000-2003. Expert at the Jagiellonian Institute in 2011-2012. President of the Security-Development-Energy Initiatives Foundation since 2014. Lecturer to post-graduate students at Collegium Civitas, Warsaw University of Technology and Helena Chodkowska University of Technology and Economics. Specialised primarily in energy law and European competition law.

Ada graduated from the Department of Law at the University of Warmia and Mazu¬ry in Olsztyn, she also holds the M.A. title in International Relations, specialisation: European Policy. In addition she completed post-graduate studies on Union Funds Management at the Department of Economy. She joined the Glaubicz Garwolińska Consultants team in January 2008. Since January 2010 she has been holding the position of the Account Director and su¬pervising the Change Management Department. Apart from that, she is also the vice-president of GGC, in charge of operational matters. She is responsible for the ongoing functioning of the company and for customer relations management. She runs crisis management projects, develops and implements strategies of communication with local communities, works on internal communication and corporate PR projects. In the past she gathered experience in a legal office and enriched her portfolio as the coordinator of the 3rd Reunion of the Polish Diaspora and Poles from Abroad; that event gave her the oppor¬tunity to cooperate with organisations from more than 60 countries in the world. Since the year 2004 she has been involved in projects related to the renewable energy sources and obtaining funds for RES from the European Union.

Recently she has provided advisory services in the field of developing and implementing com-prehensive communication strategies and corporate PR, She conducts crisis management projects in the power industry, logistics and pharmaceutical branches.

Energy in Poland

poland, critical uncertainties, action priorities

The Polish government’s energy strategy is focused on guaranteeing the security of supply of energy and gas, while taking measures to avoid significant increase of prices.

Above 75% of electricity in Poland is produced by thermal power plants: about 20% is produced in brown coal power plants, more than 48% in hard coal plants and about 2% in gas plants. Only slightly over 13% of Poland’s electricity is supplied by renewable energy sources. For this reason, energy leaders are concerned about the increasing prices of CO2 emission allowances.

To guarantee the security of supply, Poland has adopted a capacity market mechanism, with the main goal to introduce incentives for construction of new generation capacity, as well as the modernisation and longer operation of the existing capacity. This mechanism is also aimed at securing development of RES installations by using stable capacities. The rules of how the capacity market and other capacity mechanism may operate will be determined by legal acts which are a part of the Clean Energy Package (CEP). There is a risk that adopted regulations will significantly impede the effectiveness of the Polish capacity market.

In the gas sector, the main uncertainty is the Nord Stream 2 pipeline, which will connect Russia to Germany going through the Baltic Sea and Poland. To ensure its supply of gas, Poland plans to build a Baltic Pipe from the North Sea to Poland in cooperation with Denmark.

Plans and measures to counteract the main risks to the country’s energy security have been included in Polish Energy Policy, published by the Ministry of Energy in the end of 2018.

Energy subsidies: In 2018, Poland adopted a mechanism dedicated to secure long-term power supplies to final customers during emergency periods, called capacity market. This fully marketbased mechanism can also introduce incentives for construction of new generation capacities, as well as the modernisation and longer operation of the existing capacities and to secure development of renewable energy sources (RES) installations by using stable capacities. The first auctions for capacity took place in November 2018. At the same time, the Polish TSO is working on the development of cross-border connections and preparing analyses of new market design that can be suitable for RES development and decentralisation of generation.

EU Cohesion: The Clean Energy Package (CEP), which was discussed by European institutions throughout 2018, will determine several key areas for the Polish energy sector. It will set new rules for capacity mechanisms in Europe, which may create obstacles to the effective functioning of the Polish capacity market. CEP may also set new obligations for transmission system operators in electricity (e.g. obligation to share 75% of cross-border connections for trade), which can be challenging to fulfil in the context of Poland’s energy system.

Russia: Built directly from Russia to Germany, the “Nord Stream 2” pipeline bypasses Poland and other transit countries. The pipeline will be installed at the bottom of Baltic Sea. Despite crossing the European Union, this pipeline will not respond to European competition rules, such as the Thirdpart Access Rule. Moreover, energy leaders fear that the pipeline may impact Polish investments in offshore wind farms.

Climate Framework: More than 70% of Poland’s electricity is produced in coal-fired power plants. The Polish government is taking measures to reduce the share of coal in the energy mix, but currently energy production is closely related with need to the purchase of emission allowances. The increase of price of this allowance translates directly on the increase of wholesale energy price. In 2018, prices increased from €5 per allowance in January, to €25 in September.

Renewable Energies: In November 2018, the Ministry of Energy has published the Polish Energy Policy to 2040. Among the main points of focus of this document are: (i) the gradual reduction of share of carbon generation, (ii) increasing share of photovoltaic panels in energy mix, (iii) development of offshore wind farms, and an enhanced focus on (iv) decentralised generation. The document is currently subject to public consultation.

Regional integration: The Baltic Pipe is a main gas projected to connect the Polish transmission system with the Danish one. The connection to Denmark links the Baltic Pipe to the European and the Skanled gas systems, enabling the transportation of natural gas from Norwegian fields (in which a Polish company, PGNiG, also own resources). This project is a way to diversify Poland’s gas supply (with support of LNG Terminal in Świnoujście). The agreement for the construction of this pipeline has been concluded between Poland and Denmark in November 2018.

Polish energy authorities are aware of necessity to gradually reduce the share of CO2 emissions in the country’s energy mix. At the same time, they are taking measures to guarantee security of supply during this transition while also enhancing the diversification of the country’s fuel supplies.

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