Polish energy sector seeks support for the power market around Europe

The Polish Electricity Association (PKEE) is organising a series of conferences on the proposed power market in various European capitals, and the first event was held in Madrid on Tuesday.

The power market is a new measure prepared by the Polish government, and notified by the European Commission in February. It is designed to reward energy producers for readiness to offer a given power-plant capacity. Under this mechanism, demand for electricity would be met, while energy producers would have an additional source of income and an incentive to invest in new production capacity.

PKEE's deputy chairman, Professor Filip Grzegorczyk, who also manages Poland's second-biggest energy group, Tauron, told PAP the power market "will give the Polish energy sector the time and money it needs to carry out a modernisation and transformation towards low emissions."

Now the Polish energy sector is seeking support for the policy around Europe through a series of conferences. This is because proposed new regulations, currently being processed in the European Union, could endanger the implementation of the power market, Professor Grzegorczyk explained.

Grzegorczyk pointed to the example of Spain, where a non-notified power mechanism in force for the past 20 years "enhanced the development of renewable energy by providing a financial injection for economic change, and simultaneously brought stability to the functioning of power networks."

"They financed the maintenance in readiness of conventional sources necessary to ensure energy security, and on this basis developed renewable energy," Grzegorczyk explained.

Grzegorczyk said PKEE wanted EU legislators to refrain from questioning power contracts sealed prior to the introduction of the so-called winter package.

"We would want EU legislators to refrain from questioning what will take place up to the time the so-called winter package comes in. Let the 550g CO2/kWh parameter concern units built after and not before its introduction. We would like to see acquired rights respected. Power contracts concluded as a result of auctions prior to the winter package regulations' enforcement should not be subject to its regulations," Grzegorczyk stated.

According to Grzegorczyk, the energy sector also awaited the fair treatment of all EU member states. As examples of the opposite he cited the EPS 550 emission norm (550g/kWh), which is not to embrace German strategic power reserves but will apply to Polish solutions, and agreement to public aid for coal-fuelled power units in Germany but not in Poland.

"Why is EPS 550 not to apply to German strategic reserves but will apply to Polish solutions? Why is there to be public aid for coal units in Germany but not in Poland?," Grzegorczyk asked.

Grzegorczyk also spoke at the first PKEE event in the Spanish capital of Madrid on Tuesday. Further conferences are planned in France (Paris), Italy (Rome) and Belgium (Brussels), PKEE announced.