Mott's Blog

We finally, it appears at least, have a new law on renewable energy in Poland. The process has been ugly, ignorant and often deceitful. Like all efforts at government control of economic activity, it will be full of unintended consequences. The day of reckoning in Brussels has been postponed until now, but not canceled.  The two biggest issues facing the country in RES are first the transition from one support system to another (understanding that many facilities will continue to have Green Certificates, that the quota system remains in place,  and that auctions in 2016 or 2017 may do relatively little to affect the mix of RES in 2020). This issue also has the enormous problem of revolving around unnotified unlawful state aid in the form of the certificates. This year, Poland will likely get the final notice from the Commission that this has to stop, meaning that another piece of legislation trying to retroactively adjust the current system to EU law will be required. This...

Cavalry Charge Saves the Day! Once Poland enacts the new renewable energy law, unless it is changed, there should be a challenge in Brussels to compel the Polish Government to make necessary changes due to the state aid rules. Some of the arguments can be: 1.  The treatment of prosumers ( only 80% of the grid price for electricity sold) is discriminatory and arbitrary. It is anti-competitive and distorts the market in favor of large producers; 2. Forcing projects under 1 MW to go to an auction is unfair, anti-competitive and will promote market concentration by reducing or eliminating small RES facilities;                                                                                                         3. The...

The Office of Competition and Consumer Protection (UOKiK) continues the view expressed by the previous Director that the tax exemptions in the draft RES law are state aid. The correspondence dated May 23, 2014 discussing Article 177 of the July 2014 version of the law clearly agrees with the earlier assessment that tax exemptions are state aid. This "is state aid within the meaning of Article 107 of the TFEU [Treaty for the Functioning of the European Union]." They also note that the GBER or block exemption rule that the Government is relying upon to avoid notification does not cover the tax exemptions. OCCP concluded in November 28, 2013: “In this context, I wish to point out that   the exemption from excise duty for RES energy   in the Directive on the taxation of energy is optional, and hence the establishment of this type of release is not an obligation of a Member State, but the only element implemented by environmental policies. Bearing in mind ...