Poland

Country Profile

2. Policy and Incentives

10. Country Contacts

Disclaimer: This information has been prepared for the European Bank for Reconstruction and Development (EBRD) by Black & Veatch (B&V) and is based on information not within the control of EBRD or B&V. References for information contained in this report are listed at the end of this document; readers should consult these references for original source material. Neither EBRD nor B&V has made an analysis, verified, or rendered an independent judgment of the validity of the information provided by others. EBRD and B&V do not guarantee the accuracy thereof. Use of this information contained shall constitute a waiver and release of B&V and the European Bank for Reconstruction and Development from and against all claims and liability, including but not limited to liability for special, incidental, indirect or consequential damages, in connection with such use.

1. Overview of Electricity Supply

The business environment in the Republic of Poland is generally good. The Polish power generation system is the largest in Central and Eastern Europe in terms of capacity. The power system is very fragmented, with nearly 400 power plants. Poland is currently working toward privatizing their energy sector. So far, the process has produced four energy groups: Enea, Tauron, Energa, and PGE Polska Grupa Energetyczna. The PGE Polska Grupa Energetyczna is the largest energy group, accounting for almost 40 percent of the total energy production. The privatization process takes place from 2008-2011 (Warsaw Voice, 2009).

Industry-based power generation for internal use in Poland accounts for about 8 billion kWh annually, of which more than 6 billion kWh are produced from combined-heat-and-power (CHP) cogeneration. Nearly 16 billion kWh are generated annually from district heating CHP plants. Overall, more than 15 percent of Poland's total electricity generation is generated in conjunction with heat.

There are plans to expand the existing transmission and distribution networks. These investments in the electricity industry are estimated to cost around $50 billion over the next 15 years. Much of this cost, though, is proposed to be covered in the process of privatization. The current and planned transmission system can be seen in the figure below. The Polish power grid consists of approximately 200 km of 750 kV lines, about 4,700 km of 400 kV lines, and approximately 7,900 km of 220 kV lines. The system is interconnected with more than 80 large substations (GENI, 2007).

Poland’s Transmission System (Source: GENI)

Poland’s generating capacity is aging. Much of the current equipment was installed in the 1970s, and modernization efforts are required to maintain capacity and efficiency. Basic information about Poland and its energy sector can be found in the following table.

Demographical Information
Population, millions (2009)	38.4
Land area, thousand sq km (2009)	312.7
Macroeconomic Information (2003)
GDP, billion US$	667.4
Real GDP growth rate, percent	4.80
Foreign direct investment (net), million US$ (2007)	14,230
Electricity disposition, billion kWh (2006)
Generation	149.34
Consumption	126.24
Exports	13.11
Imports	7.76
Generation capacity, GW (2005)
Nuclear	0.00
Thermal	29.79
Hydro	0.93
Other renewables	0.23
Total	30.95
Sources: CIA World Factbook, U.S. Energy Information Administration, United Nations Conference on Trade and Development.

Poland Country Summary Table

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2. Energy Policy, Barriers and Incentives

As Poland is part of the European Union, they are to comply with the renewable energy targets set by the Heads of State or Governments. Poland’s renewable energy target is 15 percent renewable energy consumption by 2020. A majority of the renewable energy production will likely come from biomass resources.

Main Energy Policies in Poland (European Commission, 2008):

The “Obligation for Power Purchase from Renewable Sources” (2000, amended in 2003) requires energy suppliers to provide certain minimum shares of electricity produced by renewable energy sources (i.e. 4.8 percent in 2007 and 7.5 percent in 2010). Failure to comply with the requirement yields a penalty; however, in 2005 these penalties were not strictly enforced.

An excise tax exemption on electricity produced by renewable energy sources was introduced in 2002.

The Energy Act of April 2007 states that all energy companies selling electricity to end users have to obtain and present a specified number of renewable energy certificates or pay a substitution charge.

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3. Wind

Due to excellent wind conditions and legal regulations, Poland is one of the most promising wind energy markets in Europe. The country possesses plenty of potentially profitable locations and great development possibilities; Poland also has several local companies that manufacture Polish wind turbines. As of June 2009, Poland has 500 MW of installed wind capacity and almost 200 MW of capacity under construction. Poland also has approximately 2,000 MW of capacity that is currently in the planning process (UDI, 2009).

Poland’s current wind installations range in capacity from 225 kW to 90 MW. Their largest windfarm is Broniewek (90 MW), which is located in north-central Poland. The plant became operational in 2007 (UDI, 2009).

A country wide wind-atlas is available. According to this atlas, one area in the northwest has wind speeds above 6 m/s at 10m. The Baltic coast, one large central area, and an area to the north show wind speeds of 5 m/s. The average wind speed in Poland varies between 5.5 and 7.0 m/s at a height of 50 meters.

The best sites are in the southern mountainous region and along the Baltic coast. The wind resources range from more than 1,000 kW/m²/year near the Baltic coast to less than 400 kW/m²/year in the center of the country.

The following figure displays the wind velocities in Poland at a height of 80 m. The map shows the regions with the highest potential to be along the northern and southern borders of the country. In these areas the wind velocity can reach up to 9 m/s.

Poland Wind Resource Map (Source: 3Tier)

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4. Biomass

Biomass is the most promising source of renewable energy in Poland. The technical potential of biomass amounts to 755 PJ/year, and the greatest opportunities for biomass technology implementation has been recognized in forestry, wood processing and agriculture sectors. In 2007 2.8 billion kWh of electricity were produced using biomass and waste (EIA, 2007).

Currently, biomass is mainly used as heat in small and medium scale boilers in industrial settings. Common fuel is wood pieces, sawdust, and wood shavings. Combined heat and power (CHP) plants using organic waste from pulp and paper operations, and straw and wood fired heating plants are also in operation.

Biogas production from landfill gas and municipal waste is also available. In 2002 there were about 25 landfill gas installations producing 22.3 GWh of electricity and 100 TJ of heat. As of 2009 there are 30 landfill gas electric power stations; these installations have a total capacity of 11 MW. Poland also has 40 sewage digester plants with a total installation capacity of approximately 14 MW. Several of the sewage digesters were installed in 2007. Biogas also contributes to Poland’s electricity production with 2.5 MW of capacity (UDI, 2009). The country’s two largest biogas plants were completed in 2008 (1 MW each).

About 47 percent of the land area of Poland, about 14 million ha, consists of arable and agricultural lands. Nearly 9 million ha is forested, about 28 percent. It is estimated that the total forest cover in Poland will reach 32 percent in the next 15 years.

The area with the most development in recent years has been energy generation from fuel wood, forestry residues, agricultural residues and surpluses. These have taken the form of individual and industrial heating plants, district heating and even CHP plants, in where biomass is replacing or reducing the use of coal. Considering the age and the decreased efficiency of many of the existing plants due to age or lack of maintenance, rehabilitation and conversion to a biomass boiler may be a possible alternative.

Breakdown of Renewable Energy Sources (Source: IEA)

In addition, biofuels is an area that appears to be developing, especially for the agriculture community. The development of biofuels has been a political priority of the Polish government. Biofuels have recently been utilized in conjunction with #2 fuel oil, for heating purposes. In 2007 3,500 barrels of biofuels were produced everyday in Poland (EIA, 2007).

The table below displays Poland’s biomass resources.

Biomass resource type	Total production	Production density
Total land area covered by	(avg. 2006-2007, km²)	(avg. 2006-2007, %)
Arable Land	124,350	40
Permanent Crops	3,885	1
Permanent Meadows and Pastures	32,435	10
Forest Area	92,319	30
Other Land	51,271	16
Inland Water	8,420	3
Primary crop production	(avg. 2006-2007, tonne)	(tonne /100 km²)
Total primary crops (rank among COO)	55,815,646 (25)	17,850 (26)
Top 10 primary crops
Sugar beet	11,266,310	3,603
Potatoes	10,101,538	3,230
Wheat	8,819,136	2,469
Mixed grain	3,838,967	1,228
Triticale	3,699,279	1,183
Barley	3,613,421	1,156
Rye	2,907,863	930
Rapeseed	1,882,063	602
Apples	1,691,996	535
Maize	1,450,179	464
Animal units, number	(avg. 2006-2007, number)	(number / 100 km²)
Cattle	5,651,279	1,807
Poultry	141,953,500	45,396
Pigs	18,504,534	5,918
Equivalent animal units	14,472,628	4,628
Annual roundwood production	(2006-2007, m³)	(m³ / 100 km²)
Total	34,159,282	10,924
Fuel	3,545,402	1,134
Industrial	30,613,880	9,790
Wood-based panels	46,395,238	14,837
	(2006-2007, tonne)	(tonne / 100 km²)
Paper and paperboard	2,924,550	935
Recovered paper	1,486,850	475
Source: Food and Agriculture Organization of the United Nations

Poland Biomass Resource Data

There are very good opportunities for biomass development in Poland. The areas with the most potential for biomass / biogas projects are those in the northern and western regions, rural and mountainous regions, as well as the eastern border of Belarus.

The following figure amount of straw available for energy production in each territory in Poland.

Available Straw Potential in Poland

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5. Solar

Solar radiation intensity in Poland heavily favors the spring and summer months, with around 80 percent of the annual insolation occurring during this period. There is virtually no installed solar photovoltaic capacity. Despite the lack of solar installations and programs, Poland has two different sales branches for solar PV located in the country: Siemens and System PV.

Some liquid and air solar heat collectors are used in Poland. Air units are primarily used for grain drying, while liquid units are generally employed for space and hot water heating in homes and other buildings.

One study estimated the potential of solar energy in the country as 370 PJ/yr. The technical potential for solar energy according to the EC BREC’s studies of the year 2000 gives an annual technical potential energy as 1,340 PJ/yr. This number varies greatly in different studies. It is obvious that a country wide extensive research on the technical and economical feasibility of solar energy is needed.

The following figures are maps of the direct normal insolation and global horizontal irradiation values for Poland. The country has little solar resource throughout the country.

Poland Solar Direct Normal Insolation (Source: NASA)

Poland Global Horizontal Irradiance (Source: NASA)

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6. Geothermal

Poland has a sizable reserve of geothermal energy that is rich in low enthalpy resources, although there is little in the form of naturally occurring thermal springs or outflows. The country is characterized by large-scale low enthalpy resources which are contained in three sedimentary provinces which cover approximately 80 percent of the total land area.

Currently Poland utilizes the resources mainly for space heating, therapeutic purposes and industrial applications, although there are experimental projects regarding fish farming, timber-drying and greenhouse heating going on as well. Current installed capacity is approximately 171 MWt, generating 838 TJ on an annual basis. A contour map of the heat flux of Poland can be seen in the map below.

Heat Flux of Poland

(Source: Energie-Atlas GmbH, 2005)

Since 1992, five geothermal heating plants have been commercially developed. The five different sites use water of different characteristics in various applications. However, the sites primarily provide space heating for local residents as well as some experimental activities. The sites are at Slomniki (southern Poland in the Podhale region), Pyrzyce (NW Poland), Mszczonow and Uniejow (central Poland). A map of the locations of the geothermal plants is shown below. Poland’s first geothermal heat and power generating plant is currently under construction in Uniejow; the new 1 MW plant is a modification of the original heating plant in Uniejow.

Geothermal Resources of Poland

(Source: Polish Geothermal Association)

The Podhale project was the first in development and in 2000 secured financing from the European Union and World Bank for further expansion of the plant to include district heating capabilities for nearby towns. The Pyrzyce plant provides district heating for approximately 14,000 residents. The Mszczonow plant is the most recent and most advanced of the three. The site provides district heating and drinking water for approximately 6.000 residents. It should be noted that all of the above projects required natural gas or biomass to supplement the systems with additional heat capacity during the colder months.

Additionally, there are several heat pumps installed in many areas of Poland such as Sudetes, Kielce, as well as in the Polish Lowlands, where several individual villas and residences utilize the resources. It is estimated that there are a total of 8,000 ground-source heat pumps within the country with an installed capacity of at least 80 MWt.

The Polish Geothermal Association (PGA) has been pushing for an increase in the use and awareness of the country’s resources. While Poland has set aggressive goals concerning renewable energy to be met in 2010 and 2020, it is viewed that the majority of the renewable energy development will be in biomass. One of the largest obstacles geothermal developers have come across in Poland is the high charges for the rights to extract the geothermal waters.

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7. Hydroelectric

Hydro power will probably remain the second largest renewable energy source with limited possibilities of further growth. The Polish hydro power resource is small due to the limited and unfavorable distributed rainfall, high soil permeability and relative flatness of the country. About 70 percent of Poland’s hydroelectric potential is located on the Vistula River basin. The Oder River and coastal rivers account for the remaining potential. Most of the hydroelectric plants are located in northern Poland in the Western Pomerania, Pomerania and Warmla-Mazuria provinces. A number of plants can also be found in the north-central province of Kujawy-Pomerania (Warsaw Voice, 2008).

The total technical potential of hydro energy is equal to 49 PJ/year, of that, 6 PJ/year is from small hydro. Due to limited water resources in Poland, the installed power of most of the small hydro plants is below 100 kW. Such power stations offer a chance of improving the very poor runoff coefficient, particularly on small rivers. What is also important is the local retention of water. Small hydro takes advantage of the local possibilities of electricity generation thus providing a source of income to a group of people, usually in areas with a high unemployment rate.

The Polish hydroelectric sector has approximately 45 large hydroelectric power plants with a combined capacity of 2,050 MW; Poland also has 275 small hydroelectric plants with a total capacity of 406 MW. Only about 13.5 MW of new small hydroelectric capacity has been planned for Poland. The large Mloty hydroelectric plant, with a total capacity of 786 MW, has been delayed after the start of construction. Once completed, this plant will greatly add to Poland’s hydroelectric power generation (UDI, 2009).

The power output of existing hydro-electric power stations may be increased by 20-30 percent through modernization of the generators.

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