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Energy transition challenges

As part of the update of the 2017 Systematic Country Diagnostic for Poland, The World Bank has invited Ergy to discuss challenges towards Poland’s transition to a low-emissions economy.

Since ca. 65% of green-house gas emissions in Poland come from the energy sector, the country’s energy mix is in the spotlight. Renewable energies account for 20% of the country’s energy production and the installed capacity is growing at an impressive rate of 30% y-o-y. Yet the positive trend for renewables is slowing down, while Poland is still far from running on green energy.

Among the many challenges Poland’s energy sector is facing, we have discussed some of the key barriers to a rapid and widespread development of renewable energies. Most importantly:

  • Heavy regulatory constraints that should be readapted to the current situation of the market;
  • Exhausted grid connection capacity coupled with the urge to modernize the distribution grid;
  • Cable pooling and direct energy supply as a possibility to overcome some of the challenges;
  • Securing revenues for financing purposes via PPA or CfD – still a prerequisite for financing institutions, but a costly procedure for smaller investors.

We are grateful for the opportunity to participate in the discussions.