Renewable Energy Sources Energy Department Warsaw, April 22 nd , 2010

1. Ministry of Economy The Republic of Poland Renewable Energy Sources Energy Department Warsaw, April 22nd, 2010

2. Share of renewable sources of energy in total energy generation in accordance withDirective2009/28/EC • EU 2020 target– 20% • 2020 target for Poland – 15% • Intermediate targets forPolandset out in Directive: 2012 r. – 8,76%, 2014 r. – 9,36%, 2016 r. – 10,44%, 2018 r. – 11,88%

3. Three areas of RES • Electricity generation • Heat production • Biofuels

4. Electricity generation

5. Fulfilling the basic obligation • Target for 2010 – 7.5% • Obligation fulfilment for 2006 – 2.8% • Obligation fulfilment for 2007 – 3.4% • Obligation fulfilment for 2008 – 4.2% • Obligation fulfilment for 2009 – 5,6%

6. Main support mechanism for electricity from RES • Quota system obligation in the “Green certificates” formula introduced on 1st of October 2005 • Obligation of purchase of the whole amount of electricity generated from RES at average market price of „conventional electricity” from the previous year

7. Investors andProducers of electricity from RES have two kinds of income • From guaranteed by the law sales of electricity at the market price (40 Euro/1MWh) • From sales of property rights from thecertificates of origin at Power Exchange (60 Euro/1 MWh)

8. RES balance in Poland RES capacity (MW)

9. Structure of electricity generation from RES in the 2005 - 2008 period [GWh]

10. Heat production

11. Basic support mechanismfor heat production from RES • Purchase obligation imposed on heat sellers • The purchase obligation must be within range of needs for the heat (sellers can not be obligated to buy more than they can sell)

12. Biofuels

13. Transport biofuels • Target for 2010 – 5,75% • Realisation for 2006 – 0,92% • Realisation for 2007 – 0,68% • Realisation for 2008 – 3,66% • Realisation for 2009 – 4,63% • Target for 2020 – 10%

14. Polish regulations • Act on biocomponents and liquid biofuels • Act on the system of monitoring and control of quality of fuels Obligation imposed on producers and importers of fuels to ensure at least minimal share of biocomponents on overall quantity of liquid fuels placed on the market

15. Long-term program for the promotion of biofuels in 2008 - 2014 • Supply-side measures - excise tax exemptions - corporate income tax reduction • Demand-side measures - exemption from parking fee - obligation of state administration to use biofuels

16. RES & Biofuels Financial support • Support from the National Fund for Environmental Protection and Water Management and provincial, district and local funds 2009-2011 – 500 mln Euro • EU Funds 2007-2013 – 770 mln Euro

17. Development objectives for RES • Increasing the use of renewable energy sources in the final energy use to at least 15% in 2020 and further increase in the following years, • Increasing the share of biofuels in the market of transport fuels to 10% by 2020, and increasing the use of second generation biofuels;

18. Development objectives for RES (2) • Protecting forests against overexploitation in order to obtain biomass, and balanced use of agricultural areas for production of renewable energy sources, including biofuels, so as not to allow competition between renewable energy production and agriculture and to preserve biodiversity, • Increasing the diversification of supply sources and the creation of optimal conditions for distributed power generation based on locally available resources.

19. Measures to increase the use of renewable energy sources in EPP • Devising a path to reach a 15% share of renewable energy sources in the sustainable use of final energy, broken down into individual energy types, namely: electricity, heat, cold and renewable energy in transport, • Retaining support mechanisms for producers of electricity from renewable sources, e.g. by means of a system of certificates of origin,

20. Measures to increase the use of renewable energy sources in EPP (2) • Retaining the obligation to gradually increase the share of bio-components in transport fuels so as to meet the planned objectives, • Introducing additional support instruments encouraging more extensive production of heat and cold from renewable energy sources,

21. Measures to increase the use of renewable energy sources in EPP (3) • Implementing the directions of building agricultural biogas plants, on the assumption that at least one biogas plant is set up in each commune by 2020, • Creating conditions to facilitate making investment decisions on building off-shore wind farms,

22. Measures to increase the use of renewable energy sources in EPP (4) • Retaining the principle of exempting energy from renewable sources from excise tax, • Direct support to building new renewable energy generation units and power grids that could be connected with the use of European funds and environmental protection funds, including funds gathered in the form of the substitute fee and fines,

23. Measures to increase the use of renewable energy sources in EPP (5) • Stimulating the development of the Polish industry’s which manufactures machineryfor the renewable energy sector, also with the use of European funds, • Supporting the development of technologies and building installations to obtain renewable energy from waste comprised of biodegradable materials (e.g. municipal waste with biodegradable fractions),

24. Measures to increase the use of renewable energy sources in EPP (6) • Evaluation of plausibility of using the existing dam structures owned by the State Treasury to generate power by way of taking their inventory, establishing their framework environmental impact, and devising the rules of making them available.

25. Preliminary estimates of the potential of RES in the context of the National Action Plan Forecast (Directive 2009/28/EC) On 29 January 2010 the Committee for European Affairs adopted the forecast included in National Action Plan. This forecast includes information on Poland's estimated surplus of energy from renewable sources (more than the minimum value of the periodic trajectories calculated in accordance with Part B of Annex I to Directive 2009/28/EC), which could be transferred to other Member States and the estimated demand for energy from renewable sources which by 2020 will be charged differently than domestic production.

26. The forecast is based on the data currently held and may be subject to any changes or further updates resulting from Directive 2009/28/EC, and its precision is estimated at 0.5 percentage point.

27. Installed capacity forecast for each RES technology in Poland by 2020 in electricity

28. Installed capacity forecast for each RES technology in Poland by 2020 in electricity

29. RES share in relation to the energy mix in Poland in 2020 (heat and cool, electricity and transport).

30. Expected rate regarding use of RES in relation to the entire energy mix for electricity, transport energy and heat and cool sector [%]

31. Thank you for your attention Department of Energy Ministry of Economy