Poland
Table 10: Key renewable and biomass energy statistics, Poland
|
Electricity from biomass |
Heating and cooling from biomass |
% of total energy |
||||||
|---|---|---|---|---|---|---|---|---|
|
Mtoe |
% of total electricity |
% of ren electricity |
Mtoe |
% of total heat/cool |
% of ren heat/cool |
Biomass |
All renewables |
|
|
2009 |
0.42 |
3.3% |
56.5% |
4.11 |
11.3% |
98.1% |
7.0% |
8.7% |
|
2016 |
0.59 |
4.1% |
30.8% |
5.17 |
13.9% |
94.5% |
8.3% |
11.3% |
|
Annual average growth |
5.0% |
3.3% |
2.5% |
3.8% |
||||
|
2020 target |
15.0% |
|||||||
Source: Eurostat SHARES database, http://ec.europa.eu/eurostat/web/energy/data/shares.
Note: Biomass as percentage of total energy does not include solid biomass used for transport fuel (volumes are not yet significant).
Demand for woody biomass
Poland is a significant user of biomass for energy; in 2016, it generated the fifth highest quantity of electricity from biomass in the EU and consumed the sixth highest quantity of heat. This is partly because, compared to other countries, other sources of renewable energy are not well developed in Poland; renewables only supplied 13 per cent of electricity in 2016. Biomass and wind each accounted for about 40 per cent of this; they have both grown relatively quickly since 2009, but from a low base.
Compared to other countries, other sources of renewable energy are not well developed in Poland; renewables only supplied 13 per cent of electricity in 2016.
The vast majority of the electricity generated from biomass is through co-firing in coal stations; Poland’s economy is still heavily dependent on coal. More than a quarter is generated by the Polaniec power station in southern Poland, which has increased its biomass burn steadily over the last 10 years and converted one of its eight coal units to fully fire biomass in 2012.145
As in most other EU member states, biomass is a significant contributor to renewable heat, supplying about 95 per cent of the renewable heat total (which itself represented 14 per cent of total heat) in 2016. In combination, biomass accounts for over 75 per cent of all renewable energy (see Figure 21).
Figure 21: Structure of Poland’s primary energy production from renewable sources in 2014
— Source: Central Statistical Office of Poland (2016), Energy, http://stat.gov.pl/files/gfx/portalinformacyjny/en/defaultaktualnosci/3304/1/4/1/energy2016.pdf (accessed 18 Aug. 2016).
Figure 21: Structure of Poland’s primary energy production from renewable sources in 2014
Under Poland’s National Renewable Energy Action Plan, the government expects energy consumption to increase, by 13 per cent between 2010 and 2020 and by a further 16 per cent by 2030.146 This helps to explain why, even though renewables are projected to continue to expand, they are anticipated to account for only 16 per cent of gross final energy consumption by 2030, only 1 per cent higher than Poland’s Renewable Energy Directive target of 15 per cent by 2020. The use of biomass for heat and power is expected to continue to grow, and to continue to supply the bulk of renewable energy.
Biomass supply
Poland has a relatively large forest industry, producing 42 million m³ of roundwood (under bark) in 2016.147 According to the country’s National Renewable Energy Action Plan, wood from domestic forests and other wooded land provided the majority of domestic biomass energy supply in 2012, amounting to 12.6 million m³ (though the government also acknowledged that data on direct and indirect supplies and imports is inadequate).148
Wood fuel is mainly used in the residential sector for space and water heating; in 2014, it accounted for 13 per cent of the energy consumed in Polish households.149 Industrial and domestic waste is more commonly used in industry for process heat.150 Coal stations co-firing biomass generally use wood chips and pellets.
Pellet production has climbed sharply since 2003, reaching 780,000 tonnes in 2016.151 In 2012 about two-thirds was produced from wood residues (mainly sawdust) and a third from agricultural residues (mainly straw).152 Overall, however, pellets supply only a small (though growing) proportion of total biomass energy (see Figure 22).
Figure 22: Sources of solid biomass for energy in Poland, 2012
— Source: Wach, L. (2014), ‘Pellet Market in Poland’, Baltycka Agencja Poszanowania Energii SA, presentation at 4th Central European Biomass Conference, 15 January 2014.
Figure 22: Sources of solid biomass for energy in Poland, 2012
As can be seen from figures 23 and 24, Poland is now a net exporter of pellets, wood fuel and wood residues, mainly to Denmark and Germany (with some imports from Ukraine). It is also a substantial net importer of wood chips, mainly from Belarus. Much woody biomass is traded in Poland by brokers and by the owners of power stations; the increase in imports of wood chips reflects the increased use of biomass in power stations, through both co-firing and dedicated biomass.153 Both Belarus and Ukraine have problems with illegal logging, so there is a possibility at some stage of imports falling foul of the requirements of the EU Timber Regulation.
In terms of future supply, Poland’s National Renewable Energy Action Plan included proposals to increase sourcing from agricultural by-products, industrial waste and energy crops, and not from woody biomass.154 Indeed, implementation of the Natura 2000 programme, a network of protected forest areas across the EU, was expected to reduce the future availability of biomass for energy from Poland’s forests; a reduction of 2.74 million m³ was projected from 2009 to 2020.
However, in January 2017, the government legislated to remove the obligation on private landowners to apply for permission to cut down trees, pay compensation or plant new trees, or to inform local authorities that trees had been or will be removed – though after protest the last provision was dropped.155 Fines for non-compliance were also drastically reduced. The new legislation led to a surge in tree-felling, and is likely to make logging for infrastructure development more likely.
Figure 23: Poland’s imports of woody biomass potentially for energy, 2010–16
— Source: Generated from Eurostat data at http://epp.eurostat.ec.europa.eu/newxtweb/mainxtnet.do.
Note: Wood chips and residues are not only used for energy generation.
Note: Wood chips and residues are not only used for energy generation.
Figure 23: Poland’s imports of woody biomass potentially for energy, 2010–16
Note: Wood chips and residues are not only used for energy generation.
Figure 24: Poland’s exports of woody biomass potentially for energy, 2010–16
— Source: Generated from Eurostat data at http://epp.eurostat.ec.europa.eu/newxtweb/mainxtnet.do.
Note: Wood chips and residues are not only used for energy generation.
Note: Wood chips and residues are not only used for energy generation.
Figure 24: Poland’s exports of woody biomass potentially for energy, 2010–16
Note: Wood chips and residues are not only used for energy generation.
Support for biomass energy
Support for biomass power and heat is provided through a range of policy mechanisms including auctions, a feed-in-tariff scheme, tax relief, loans and subsidies. Poland provides greater support for biomass power than for biomass heat; as of 2016, there were no legislative frameworks supporting renewable heat consumption, though financial support is available through loans and subsidies.
Poland provides greater support for biomass power than for biomass heat; as of 2016, there were no legislative frameworks supporting renewable heat consumption, though financial support is available through loans and subsidies.
Until 2016, renewable power was supported through a quota system under which electricity generators and suppliers were obliged to purchase a set amount of renewable energy through a system of renewable energy certificates.156 In 2015, a certificate from an eligible biomass-fired power plant cost PLN 303 (about €69). The system led to an over-supply of certificates, gave a substantial boost to co-firing with coal, where investment costs were lower than other renewables, and delayed the expansion of other technologies.157
As a result, in 2016, the quota system was replaced for new installations (existing installations remain on the old scheme).158 Under the new system, very small installations (up to 40 kW) are supported through a version of a net-metering system, with discounts (of 70 or 80 per cent, depending on size) on the electricity price for the amount of electricity fed into the grid. Medium-sized installations with a capacity of up to 500 kW receive a feed-in tariff. Large plants, above this capacity, are entitled to a premium system, based on auctions: beneficiaries receive the premium when the market price of electricity is below the bidding price submitted in the auction, for 15 years. Generators co-firing with biomass are eligible to bid provided that at least 15 per cent of the input fuel is biomass. So far, two auctions have been conducted, in December 2016 and June 2017. These support schemes are financed by a levy on electricity consumers. In addition, operators producing renewable electricity are exempt from excise duty, saving them PLN 20 (€4.60) per MWh.159
Loans and subsidies are also available from a variety of sources for the installation of small and large-scale biomass power and heating systems, though policy in this area is currently undergoing a process of revision.160
Sustainability criteria
Under the old green certificates system, the use of roundwood in large installations (greater than 5 MW) was not eligible for support. Only residues were allowed and a minimum (increasing) share of agricultural biomass was required. New criteria are due to be drawn up to accompany the new system of support, but these have not yet been finalized.
145 Sandbag (2017), Something Nasty in the Woodshed.
146 European Commission (2012), ‘National Renewable Energy Action Plan: Poland’, https://ec.europa.eu/energy/en/topics/renewable-energy/national-action-plans (accessed 18 Aug. 2016).
147 Eurostat data at http://ec.europa.eu/eurostat/web/forestry/data/database.
148 Ministry of Economy (2014), Interim Report on progress in the promotion and use of energy from renewable sources in Poland in 2011–2012, http://www.eurobserv-er.org/pdf/res-policy/EurObservER-RES-Policy-Report-Article-22-Poland-report-EN.pdf (accessed 18 Aug. 2016).
149 Central Statistical Office of Poland (2016), Energy.
150 International Renewable Energy Agency (2015), REMap 2030: Renewable energy prospects for Poland, Background Paper, http://www.irena.org/DocumentDownloads/Publications/IRENA_REmap_Poland_paper_2015_EN.pdf (accessed 18 Aug. 2016).
151 FAOSTAT data at http://www.fao.org/faostat/en/#data/FO.
152 Wach, L. (2014), ‘Pellet Market in Poland’, Baltycka Agencja Poszanowania Energii SA, presentation at 4th Central European Biomass Conference, 15 January 2014.
153 Bioenergy for Business (2015), ‘Country summary reports: Poland’, http://www.bioenergy4business.eu/country-summary-reports/ (accessed 19 Aug. 2016).
154 European Commission (2012), ‘National Renewable Energy Action Plan: Poland’.
155 Davies, C. (2017), ‘Polish law change unleashes “massacre” of trees’, The Guardian, 7 April 2017, https://www.theguardian.com/environment/2017/apr/07/polish-law-change-unleashes-massacre-of-trees (accessed 8 Nov. 2017).
156 RES Legal (2016), ‘Legal sources on renewable energy: Poland, Overall summary’, http://www.res-legal.eu/search-by-country/poland/tools-list/c/poland/s/res-e/t/policy/sum/176/lpid/175/ (accessed 18 Aug. 2016).
157 International Renewable Energy Agency (2015), REMap 2030: Renewable energy prospects for Poland; Wach (2014), ‘Pellet Market in Poland’.
158 European Commission (2017), ‘State aid: Commission approves PLN 40 billion (around €9.4 billion) Polish support scheme for renewable energy’, 13 December 2017, http://europa.eu/rapid/press-release_IP-17-5261_en.htm (accessed 29 Jan. 2018); Eurobserv’ER (2017), Renewable Energy Policy Factsheet: Poland, https://www.eurobserv-er.org/pdf/renewable-energy-policy-factsheet-2017-poland/ (accessed 29 Jan. 2018).
159 Ministry of Economy (2014), Interim Report on progress in the promotion and use of energy from renewable sources in Poland in 2011–2012, http://www.eurobserv-er.org/pdf/res-policy/EurObservER-RES-Policy-Report-Article-22-Poland-report-EN.pdf (accessed 18 Aug. 2016).
160 RES Legal (2016), ‘Legal sources on renewable energy: Poland, Overall summary’; Eurobserv’ER (2017), Renewable Energy Policy Factsheet: Poland.