Krzysztof PRASALEK

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WIND ENERGY FORUM The Meeting concerns the
project of The Act on Management of Renewable
Energy Resources and Supporting Development of
Renewable Energy which has been developed by
Department of Environmental Protection
Instruments in Ministry of the Environment.
21ST of October 2003 Warsaw, Poland
Krzysztof PRASALEK Vis Venti
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Stable legal system as a solid base for
development of the renewable energy sector

• Aimed at supporting production of renewable
  energy
• Containing logical and stable legal base
• Accordant to the adequate EU rules and
  directives
• Assuring undisturbed and steady development of
  renewable energy sector.

In Vis Ventis opinion the current project of The
Act on Management of Renewable Energy Resources
and Development of Renewable Energy does not
contribute to creating such a system.
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The current project of The Act does not assure
the development of renewable energy sector.
PROJECT OF THE ACT
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No complaisance with EU Directive

• Distorted role of certificates of origion point
  11 of preamble to Directive 2001/77/EC (art.26
  p.4,5)
• No transition period for introduced regulations
  (7-year period) Directive art..4, paragraph 2e
• Main obstacles remain unchanged
• - Complicated procedures of obtaining required
  allowences, permits and approvals (Dyr. Pre 20),
• No mechanisms supporting connection of new
  investments to the existing grid (Dyr. Art.7
  paragraph 1),
• Expanded and not clear strategies developed by
  local authorities (Dyr. art.6 u1).

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Lack of mechanisms supporting development of
renewables

• Instability Strategy which is a base of policy
  regarding renewables (art.4 p.2) can be changed
  every 5 years (art.5p.1). Policy is definied in a
  lower act called Strategy, what makes it more
  dependent on any coniunctural changes (e.g. share
  of renewables) (art.6p.6). Instability is
  additionally deepen by some solutions adopted on
  the market (like the trade of certificates) which
  cause enormous fluctuations of green energy
  prices, that can be accepted either by investors
  nor financial institutions
• Rules of green energy turnover were established
  on the base of wrong interpretation of function,
  which should be fulfilled by certificate of
  origion
• Unreal assumptions regarding development of
  renewables no concrete solutions

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Lack of mechanisms supporting development of
renewables

• Negative results of transferring duties on
  producers
• No tarnsition period
• Lack of proposal on solving the problem of
  existing sale-purchase contracts
• Distributores are more familiar with the idea of
  functioning renewables market (diffused sources)
  than large producers of energy
• Producers will strongly focus on fulfilling their
  duties on their own threat of CO-combution.

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Lack of mechanisms supporting development of
renewables

• The project of The Act supports indirect and
  apparent activities (32 art. na 51)
• Strategy, vojvodships programmes
• Executive programmes
• Reports and statistics
• The Fund another not-market mechanism of means
  distribution with unclear influance on the
  renewables sector
• Pilotage and demonstration programmes
• Education, promotion
• others.

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Lack of mechanisms supporting development of
renewables

• Increase of state control over the market
  (preference of chosen technologies art.6p6
  art.7p4p4, interference in costs - art.9p.5).
• Lack of presence in areas, where the state
  involvement would be welcomed (establishing rules
  and defining costs of connections, Building Code
  and other administrative procedures, Balancing
  market).

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There are some advantages,but

• The fact that The Act on renewables is being
  finally prepared, but the content of the act is
  NOT ACCEPTABLE for the sector representatives
• Establishment of penalties for not fulfilling the
  obligations, but wrong system of counting and
  executing them
• Obtainment of financial means from penalties, but
  the wrong funds utilization around half of
  funds go for indirect and apparent activities
• The project covers large spectrum of issues
  connected with differetnt kinds of energy (heat,
  eletrical energy), but sometimes it is not clear
  which regulation refers to particular sort of
  energy.

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SUM UP
The proposed project of The Act does not
correspond with EU Directive 2001/77/EU, was
based on wrong assumptions, encourages
biurocracy and indirect activities, enhances
confusion and uncertainity among investors. The
way in which works on the project have been
carried on (rush, apparent discussion, with no
respect to remarks raised by sector
representatives) has totally precluded a
possiblity of creating a good act project.
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Thank you for your attention!