Renewable Energy Obligation and Green Certificates
According to the Renewable Energy Actelectricity sellers they must prove that they have purchased a specific volume of energy confirmed by certificates of origin, i.e. special certificates. The so-called renewable energy obligation refers to certificates of origin of electricity from renewable energy sources – so-called green certificates. To meet this obligation, recipients purchase certificates on the exchange or directly from producers of “green” energy.
Ministry of Climate and Environment proposed to establish the level of the so-called RES obligation at 12.5 percent in 2025.and then its decrease by 0.5 percentage points in 2026 and then in 2027. In the draft regulation submitted for consultation, the ministry also proposed maintaining it at the level of 0.5%. obligation for so-called blue certificatesi.e. certificates of origin electricity from biogas. For 2024, the obligation level is 5 percent.
Renewable Energy Associations’ Demands
Polish Wind Energy Association and Renewable Energy Association In appeal to Prime Minister Donald Tusk called for an even greater increase in the level of the obligation. In a letter to the head of government, which was obtained by PAP, PWEA and SEO request setting it at at least 18 percent in 2025, 13 percent in 2026 and 13 percent in 2027.
“A drastic reduction in the level of obligation will lead to a complete collapse in the green certificates marketand thus will prevent the achievement of profitability of production sources functioning in this support system. Interference in the system of certificates of origin will constitute a clear abuse of investors’ trust anda threat to green transformation and economic development. Lack of investment in renewable energy this is also consolidation of the energy mix generating the highest costs, i.e. maintaining high electricity prices for its consumers in the long term,” the appeal reads.
Problems with investments in renewable energy
As organizations have pointed out, the current Council of Ministers has a chance to repair the effects of many years of neglect and blocking of renewable energy sources. The authors emphasized that the attractiveness of Poland for companies investing inrenewable energy sources dropped for the first time in years, and for new investments to appear in the wind sector it is necessary to ensure the stability of support already providedbecause departing from this principle raises a question mark security of future investments.
“We cannot worsen investment conditions for projects that have already been completed. The consequences of such bad decisions will be borne by Polish industryespecially energy-intensive ones, which will not be able to obtain appropriate volumes of green energy in the medium and long term” – reads the appeal of PWEA and SEO.
The position of energy-intensive consumers
Meanwhile energy-intensive recipients they demand movement in the opposite direction, i.e. an even greater reduction in the obligation level – to 2 percent in 2025-2027.
In an open letter to the Minister of Climate Chamber of Industrial Energy and Energy Consumers representing energy-intensive industrial plants writes that any regulation that causes increasing the costs of industrial production must be treated as acting to the detriment not only of Polish industry, but also of business in the broad sense.
“That is why we cannot accept proposals of the Ministry of Climate and Environment increase in the obligation to write off certificates of origin issued for electricity produced from renewable energy sources” – the Chamber wrote. As it pointed out, the information itself about the levels of these obligations under consideration caused more than doubling of green certificate prices In stock exchange quotations.
Benefits for renewable energy producers
The Chamber also notes that from the high electricity pricespaid by large industrial customers and other groups of end users, including households, are mainly used by producers using technologies that are not accompanied by high costs of fuel and CO2 emission allowances. This applies primarily renewable energy producers – indicated.
At the same time, the Chamber assessed that the interests of Polish industrial customers is harmonized with the level of possible consumption development of efficient renewable energy installationscapable of balancing their own production independently, implemented through an auction system, which should provide producers with the necessary profitability and security, and end users with stable, low electricity prices. It is also necessary to strive to eliminate all regulatory and technical barriers blocking the creation of electricity in Poland RES installations connected directly to the electricity grids of industrial plantsin particular onshore wind farms, it was noted.
Changes in the level of RES obligation over the years
In 2023, the renewable energy obligation was 12%. In the previous term, the Ministry of Climate initially submitted a draft regulation for consultation with the renewable energy obligation of 11, 10 and 9 percent in 2024-2026, respectively. Ultimately, the regulation only included the obligation for 2024 at 5 percent. More than twice lowering the level of obligation was justified by the desire to reduce electricity bills.
Renewable Energy Obligation concerns the first support system for renewable sources, introduced in 2005 and providing for a 15-year support period. The oldest installations using this system began to gradually exit it from 2020. (PAP)
Author: Wojciech Krzyczkowski
