Mott's Blog

I have put together this interesting graphic to depict what the different assumptions about support mean in the new Polish law being debated now. This does not reflect the value of heat sales or support for co-generation, which are critical to having a profitable project. It does show the relative inefficiency of smaller projects. The graphic also clearly illustrates the problem of buying substrates (such as grain or silage) and their very high contribution to the end price per kWhr. The values used cover a variety of scenarios. The 1.4 correction factor was the original Ministry of Economy proposal. The 2 factor is slightly lower than the IEO report recommended last year. The auction value would be the reference price (maximum in the auction) which will be lower somewhat, but not significantly since there will be too few projects below 1 MW to create real competition in the bidding as the proposal now stands. It is questionable whether the Polish proposed auctions can be approved ...

PBA filed detailed comments on the new law, stressing changes that do not require higher subsidies, but improve biogas productivity. More waste substrates can be handled to reduce the impact of their management on consumers. Green Certificates should continue for small projects that allow direct sales of electricity, again saving consumers money. All types of biogas should benefit the same from regulatory procedural incentives, with support levels adjusted by cost of production as required by the EU state aid rules. These issues have been raised for the four years that the draft legislation has been circulating. Since biogas remains a major part of the national plan to meet the 2020 EU renewable energy mandate, as well as providing many additional benefits, the revisions should be oincluded in the amendments as a priority matter. The Polish version of the comments is here . An English version is available on request.

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 ...