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20 January 2015 | by Gabor Chodkowski-Gyurics

Sejm passes the renewable law

Sejm passes the renewable law
The lower house of the Polish parliament, the Sejm, passed the much-awaited law on renewable energy January 16. The law will replace the current system of green certificates with an auction system in which developers will bid for renewable capacity. URE, the market regulator will announce the amount of MW for which developers will bid each year.

Auctions will be won by developers who will offer lowest price, which will become a fixed purchase price from the grid operator guaranteed for 15 years. This solution came under criticism from smaller developers who claim low bidding favour large companies, who already control an estimated 90 percent of the market today.

The government denies these charges by pointing to provisions in the law that require that 25 percent of renewable energy in Poland will have to come from installations of up to 1 MW capacity. The law also introduces feed-in-tariffs for smallest producers, so-called prosumers, who will largely be individuals producing renewable energy for their own needs. Under new regulations they will be able to sell excess energy to the grid, however.

The new law will have end-users pay a special “renewable charge” added to the energy bill. In the first year, the charge will amount PLN 2.27 ($0.61) per MWh, according to the law.

The system is estimated to reduce the burden on state budget by PLN 7 ($1.86) billion as compared to the old one, according to the government.

The law is an attempt to fulfill the EU-required target of 15.5 percent of renewable energy in final consumption by 2020.


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