Poland : The Feed-In Law

On 20 February 2015 the Sejm finally adopted the RES Act, accepting most of the changes made by the Senate. The RES Act will enter into force after the President signs it into the law and it is published in the Journal of Laws – presumably in March this year.

The feed-in tariffs for micro-installations up to 10kW remain at the level originally enacted by the Sejm at its third hearing in mid-January, i.e. PLN 0,75/kWh for PV up to 3kW and PLN 0,65/kWh for up to 10kW - substantially higher than the current PLN 0,52/kWh for PV up to 10kW in Germany. The RES Act introduces a cap of 500 MW for these feed-in tariffs. This cap might be hard to control as the feedin tariffs will lead to a short boom for PV micro installations from spring 2016 and the cap is likely to be reached within the first year.

The RES Act implements the following timeline:
1. A few changes to the Energy law act will enter into force immediately after publication, i.e. in March 2015. These changes concern the obligation placed on large energy consuming enterprises to
consume a certain share of renewable energy and co-generation energy, the extension of the
redemption period for green certificates until end of June and the re-organisation of the registering
process for green certificates.
2. The remaining part of the RES Act generally enters into force 30 days after publication except for
the changes to the existing and new support system (chapter 4).
3. Co-firing installations (so-called “non-dedicated”) will receive 0.5 green certificates per MWh as
soon as 30 days after publication of the RES Act; large hydropower plants will continue to receive
green certificates until the end of 2015.
4. The pre-qualification for the auction system at the Regulatory Office (URE) will start by 1 May 2015. URE has to qualify a RES generator within 30 days if its documentation is complete. A public tender for the electronic platform to conduct auctions will be held.
5. The government will publish the amount of energy and its value for the first auction by 31 May 2015 for large RES generators and by 15 June 2015 for RES generators up to 1 MW.
6. The regulations to establish OREO, the agency to settle contracts for difference, will enter into force by 1 October 2015.
7. All existing grid connection contracts should be adapted within 6 months of the RES Act’s entry into force, i.e. presumably by end of September 2015, so that the grid connection date is no later than 31 March 2019 (i.e. 48 months after the RES Act enters into force). The RES generator will have to
present its proposal for adopting the time schedule within three months of the RES Act entering into
force, i.e. presumably by end of June 2015. The timeline for offshore wind is 72 months. This means,
for instance, that grid connection contracts will have to be adopted, e.g. including the PSE grid
connection contracts concluded with Polenergia for a 1.2 GW offshore wind farm, with EDPR for a 120 MW onshore wind farm in Baczyna and with Enertrag for a 500 MW onshore wind farm in Krajnik.
8. The government will publish the first reference prices by 31 December 2015.
9. RES generators will have to be connected to the grid and produce their first kWh (by all devices) by 31 December 2015 to enter into the green certificate support system.
10. URE will publish the first auction by 31 March 2016. The auction will take part a minimum of 30
days after the auction has been published, presumably concluding in the second quarter of 2016.
11. The regulation of 18 October 2012 – the so-called quotation regulation – will remain in force until no later than the end of 2017. So, if no further changes are adopted sooner, the quotation obligation will increase to 16% in 2017. For the year 2018 the government will have to enact a new quota for the green certificate system.
12. The government will publish a report about the functioning about the RES support system and will propose legal changes by 31 December 2017. This report can be expected to be the basis for a
substantial downsizing of the quota obligation from 2018. Thus, green certificates prices should stay at an acceptable level until 2017 redemption period (i.e. until 30 June 2018). After this date a downsizing of the quota will take place and prices will be at risk so that a floor of PLN 100/MWh is likely. The cheapest technologies, e.g. large brownfield biomass, dedicated co-firing and onshore wind at the end of its support period, will still be profitable at this price level. So existing RES generators are recommended to switch to the auction system at the third auction in the first half of 2018 at the latest.

source : http://solivan.pl


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