{"id":7629,"date":"2013-01-02T00:00:00","date_gmt":"2013-01-02T00:00:00","guid":{"rendered":"https:\/\/www.psew.pl\/?p=7629"},"modified":"2024-04-02T08:34:11","modified_gmt":"2024-04-02T08:34:11","slug":"polish-wind-energy-association-position-paper-on-the-draft-renewable-energy-sources-act-prepared-by-the-democratic-left-alliance-parliamentary-club","status":"publish","type":"post","link":"https:\/\/www.psew.pl\/en\/polish-wind-energy-association-position-paper-on-the-draft-renewable-energy-sources-act-prepared-by-the-democratic-left-alliance-parliamentary-club\/","title":{"rendered":"Polish Wind Energy Association Position Paper on the draft Renewable Energy Sources Act prepared by the Democratic Left Alliance Parliamentary Club"},"content":{"rendered":"<div>\n<p><strong>The Polish Wind Energy Association (PWEA) is very satisfied with the Democratic Left Alliance Parliamentary Club\u2019s initiative concerning the submission of a draft Renewable Energy Sources Act. The parliamentary draft addresses key remarks of the RES industry to the governmental draft. PWEA hopes that the new draft Act proposed by the Democratic Left Alliance will contribute to faster commencement of works on the new RES industry regulations by the Sejm and end the 2-year period of investment uncertainty.<\/strong><\/p>\n<\/div>\n<div>\n<p>The Democratic Left Alliance\u2019s draft has been presented to industry organisations \u2013 renewable energy producers, including the Polish Wind Energy Association, for consultation. The consultations were summarised during a conference featuring Renewable Energy Issues held on 3 December 2012 in Gdynia.\u00a0<strong>PWEA deems the Democratic Left Alliance\u2019s approach to subject the governmental concept of the draft RES Act to necessary modifications<\/strong>\u00a0to eliminate its crucial flaws that could completely halt further development of the energy sector in Poland rather than to fully transform it fully legitimate.<\/p>\n<p>The RES Directive and the so-called Energy Directives shall be urgently implemented to the Polish legal system by way of parliamentary amendments.<strong>\u00a0It seems that the best solution is to examine the parliamentary draft RES Act developed by the Democratic Left Alliance together with the parliamentary draft of the Energy Law developed by the Citizen\u2019s Platform and the Polish Peasant Party Parliamentary Clubs. This would enable the commencement of urgent works on full implementation of the Directives.<\/strong>Fragmentary amendments to the law as well as delay in full implementation of the announced regulations will only increase the investment uncertainty to the detriment of the Polish economy and many local governments.<\/p>\n<p>The insignificant number of modifications implemented by the Democratic Left Alliance\u2019s club only pertain to the modification to the support scheme at a level making it possible to balance growth rates and repayment of credits and loans drawn to date to finance completed investments as well as to the unlocking of grid connections for the RES industry.<\/p>\n<p><strong>PWEA approves the following provisions included in the Democratic Left Alliance\u2019s draft:<\/strong><br \/>\n<strong>1)\u00a0\u00a0 \u00a0Maintenance of substitution fee indexation with inflation ratio<\/strong><br \/>\nIn accordance with PWEA the key issue that has to be guaranteed in the RES Act is the indexation of the unit substitution fee by inflation (for the fee de facto determines the price of green certificates). This is crucial for the protection of completed investments existing in the current Energy Law. Not only it ensures long-term stability of revenues, but also prevents encumbering energy producers with the risk of unpredictable inflation.<\/p>\n<p><strong>2)\u00a0\u00a0 \u00a0Implementation of protection of accrued rights for existing installations and advanced investments in progress<\/strong><br \/>\nThe governmental version of the Act provides for fragmentary provisions consisting in the application of the so-called correction factor of 1 for these investments, what only illusorily does not change the revenues from the sale of green certificates. The governmental draft deprives of the substitution fee indexation, what will result in real decrease of green certificates\u2019 value in time. Hence, this is a concealed method to decrease support for completed investments and to encumber them with inflation risk. The lack of a transitory period in the governmental draft substantially changes investment environment for advanced projects, what will delay or bring implementation of a substantial part of the projects to a halt. The Democratic Left Alliance\u2019s draft takes accrued rights into account by guaranteeing annual indexation of the substitution fee by inflation (as in regulations applicable to date).<\/p>\n<p><strong>3)\u00a0\u00a0 \u00a0Maintenance of the obligation to purchase electricity from RES<\/strong><br \/>\nThe Democratic Left Alliance\u2019s parliamentary draft maintains the obligation to purchase electricity at a guaranteed price, i.e. it maintains the current system. It removes the provisions proposed by Ministry of Economy that are to prevent the sale of electricity at a market price.<\/p>\n<p><strong>4)\u00a0\u00a0 \u00a0Specification of time horizon for the obligation to purchase certificates of origin<\/strong><br \/>\nIn accordance with PWEA the time horizon for the obligation to purchase certificates cannot be defined as only 15 years from the effective date of the Act as defined in the governmental draft. The Democratic Left Alliance\u2019s draft provides that the obligation to purchase green certificates applies for the entire period of their eligibility planned by Ministry of Economy, i.e. until 2035, with the exception of co-firing.<\/p>\n<p><strong>5)\u00a0\u00a0 \u00a0Introduction of an effective green certificate oversupply prevention scheme<\/strong><br \/>\nThe solution proposed by Ministry of Economy does not provide for a legal guarantee that a decrease in the certificates\u2019 value will be prevented. The proposal presented in the Democratic Left Alliance\u2019s draft enables the maintenance of the green certificates\u2019 value in the long term at a level close to 90% of the substitution fee paid in the case of the failure to purchase a relevant number of green certificates.<\/p>\n<p><strong>6)\u00a0\u00a0 \u00a0Rationalisation of the terms and conditions for connecting renewable energy source installations to a network<\/strong><br \/>\nThe Democratic Left Alliance\u2019s draft provides a solution to key barriers related to connection of RES to a network: it implements priority for the connection of RES installations before conventional installations and lays down network operators\u2019 obligations facilitating the connection of renewable energy sources.<\/p>\n<\/div>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Polish Wind Energy Association (PWEA) is very satisfied with [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6116,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[35],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.9 - 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