Renewable energy construction in Poland 2014 Development forecasts and planned investments

Renewable energy construction in Poland 2014

Development forecasts and planned investments

This publication presents the results of a recent study of construction market activity related to facilities that use wind, solar, water, biomass and biogas - renewable fuels - to produce electrical power for sale and use in Poland.

 

This report supplies analysis of each segment according to fuel source and enlightens readers as to established and emerging market trends. It analyses Poland’s planned RES act and describes the potential effects of regulations on companies involved in the generation of power using renewable resources.

 

This report covers current market issues and planned investments…

  • It provides evaluations and descriptions of conditions in all key market segments - wind power, hydroelectric power, biomass and photovoltaics
  • It presents data describing the size (MW) and value (PLN bn) of the entire renewable energy construction market in Poland
  • It discusses obstacles to planned investments and percentage of those successfully finalised
  • It names specific locations in Poland that contain the highest investments in renewable energy generation
  • It examines new industry regulations and estimates their effects on planned renewable energy investments in Poland.

 

Take advantage of exclusive content…

Gain a clearer understanding of the market for power generation construction projects in Poland when you read about:

  • The possibilities for market growth among companies generating power using wind, hydroelectric biomass and photovoltaic sources
  • Investment strategies of leading companies in this market, including details on planned investments and likelihood of completion.

 

Did you know...

  • The construction of a wind power object with a capacity of 1 MW will be an expense of around PLN 6-7m, of which nearly 80% is related to the purchase of a wind turbine.
  • There are no offshore objects in Poland yet, despite years of preparation. The estimated date for the creation of the first offshore wind farms is currently 2020.
  • It is estimated that 51 out of 55 Polish baseload power are currently licensed for co-firing of biomass.
  • At present, small and medium-sized enterprises are suffering the most, unable to wait as long for a new law on renewable energy, while large companies are gaining.
  • Nearly 85% of installations in Poland are working based on biogas from landfills or wastewater treatment plants.
  • Potential development of agricultural biogas and micro-biogas plants in Poland ranges from 3,000 to as much as 4,000 MW.

 

Selected companies analysed in this report...

Kulczyk Investment, PGE, Energa, ENEA, Turon, GSG Towers, Siemens , Nordex, Stocznia Crist , Stocznia Goleniów, LM Wind Power, Vest-Fiber ApS, ABB, ISD Huta Częstochowa, KK Electronics, Tele-Fonica Kable, Energomontaż Gdynia i Mostostal Chojnice, Elektromontaż Północ Gdynia, Vistal Gdynia, Energi, Aluship Technology.

 

This report is the ‘go to’ document for professionals engaged in…

  • New market entry
  • Locating new projects and contracts in renewable energy construction in Poland
  • Devising a successful corporate growth strategy
  • Evaluating the prospects for upcoming investments in this market
  • Observing and analysing competitor activity
  • Assessment of current corporate market share
  • Creating reporting and analyses for executive and shareholder use.

 

Well-suited to meet the business information needs of…

  • Contractors involved in renewable energy source construction
  • Specialised equipment providers and manufacturers offering products for this sector
  • Businesses offering new construction equipment brands and innovations designed for RES
  • Researchers, analysts and consultants with interests in this sector
  • Financial services professionals at banks, brokerage houses and operating investment funds.

 

Extract from this report

  • The rapid growth of the RES segment in Poland was driven by a wide range of facilities and funding programmes. Construction costs and other related expenses are frequently covered with state funds disbursed by the National Fund for Environmental Protection and Water Management (NFOSiGW) and EU funds. Under one of the numerous programmes supporting RES, the EU provided funds sufficient to build renewable energy resources worth PLN 4.4bn (€1.1bn).
  • Poland is about to develop a new legal framework for the operation of RES systems in the country. There are plans to allocate the funds to specific projects in a more planned manner while gradually withdrawing the funding from the market.
     

Market commentary by expert

 

The most important factor that is likely to impact the shape of the RES market in Poland will be the currently developed law on renewable energy sources. In the coming months there is a chance that with the development and enactment of new regulations, some of the suspended investments into renewable energy may return to the implementation stage.

 

Bartłomiej Sosna, Head Construction market Analyst

 

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Table of contents

  1. Methodology      9
  2. Executive summary      11
  3. Structure of Poland’s renewable energy sources      17
    1. Location of RES projects in Poland      21
    2. Connection of renewable energy sources to the grid      22
    3. Funding of RES investment projects      25
      1. RES support systems prepared by NFOSiGW      25
      2. EU funds      28
      3. Domestic funds      29
      4. Norway Grants      30
    4. New Renewable Energy Sources Act      30
      1. Changes in the green certificates system      31
      2. Key objectives of the revised support system      32
      3. SWOT analysis for the RES sector      34
  4. Wind power in Poland      37
    1. Installed wind power capacity      37
    2. Costs of building and maintaining wind turbines      39
    3. Growth potential for wind energy in Poland      40
    4. Changes to rules for financing wind power projects in Poland      41
    5. Growth of offshore wind power in Poland      42
    6. Production of wind turbines and wind towers      44
    7. Major wind power projects in Poland      45
  5. Hydropower generation in Poland      53
    1. Major hydropower projects in Poland      57
    2. Construction costs for hydropower plants in Poland      58
  6. Biogas power in Poland      61
    1. Biogas plants in the new Renewable Energy Sources bill      65
    2. Costs and preparation of biogas plant construction      66
    3. Biogas plant projects in Poland      71
  7. Biomass power in Poland      75
    1. New regulations applicable to biomass      80
    2. Major biomass combustion projects in Poland      82
  8. Solar energy in Poland      85
    1. Costs of solar farms      90
    2. Legal framework for the development of solar farms in Poland      92
    3. Major solar power projects in Poland      94
  9. Geothermal power in Poland      97
    1. Potential offered by geothermal projects in Poland      97
    2. Major geothermal projects in Poland      99
  10. List of graphs      103
  11. List of tables      105
  12. About PMR      106

 

List of graphs

  1. Structure of power generation in Poland (%), by source, 2013      11
  2. Structure of RES capacity installed in Poland (%), 2013      12
  3. Structure of power generation in Poland (%), by source, 2013      17
  4. Structure of RES capacity installed in Poland (%), 2013      18
  5. Structure of RES facilities installed in Poland (%), by number, 2013       19
  6. Consumption of renewable energy in heating and cooling, power generation and transportation in Poland (%), 2010-2020       20
  7. Installed capacity of renewable energy sources in Poland (MW) and capacity change (%), 2005-2013      20
  8. Location of RES units in Poland (%), by capacity, 2013      21
  9. Geographic reach of the major distribution groups in Poland, 2013      23
  10. Amount of financing under the GIS scheme in form of borrowings and grants (PLN m) in Poland, 2013      26
  11. Agreements for additional EU funding as part of projects funded under Priority 9 (PLN m), 2013      28
  12. Allocation of funds (PLN ‘000) granted to solar collectors and annual utilisation of allocation (%) in Poland, 2010-2015      29
  13. Development of wind power (MW) in Poland and capacity change (%), 2005-2012      37
  14. Location of wind farms in Poland (%), 2013      38
  15. Installed capacity of wind turbines in Poland (MW), 2007-2015      39
  16. Breakdown of construction costs for wind farms in Poland (%), 2012      39
  17. Ongoing maintenance costs for wind farms in Poland (%), 2012      40
  18. Shares of individual types of wind farms in Poland in 2020 (%), according to the government’s plan      43
  19. Market shares of leading manufacturers of wind turbines in Poland (%), 2013      44
  20. Hydropower plants in Poland by number of units and generation capacity (%), 2013      54
  21. Installed capacity (MW) of run-of-river hydropower plants in Poland and capacity change (%), 2005-2013      55
  22. Location of hydro plants in Poland, by installed capacity (MW), 2013      56
  23. Structure of construction costs for hydropower plants (%) in Poland      58
  24. Biogas power plants in Poland by number of units and generation capacity (%), 2013      62
  25. Growth of biogas plants in Poland, by installed capacity (MW) and growth change (%, y-o-y), 2005-September 2012      62
  26. Location of biogas plants in Poland, by capacity (MW), 2013      63
  27. Structure of capital expenditure for a typical biogas plant in Poland (%), 2011      66
  28. Categories of operating costs of biogas plants in Poland (net of depreciation costs), 2013      67
  29. Domestic and foreign manufacturers of biogas devices on the Polish market (%), 2012      70
  30. Number and installed capacity of biomass-fired boilers in Poland, by type of fuel (%), 2013      76
  31. Growth of biomass installations in Poland (biomass-fired units) and growth rate (%), 2005-2013      77
  32. Areas most active in biomass use for power generation in Poland, by installed capacities (MW), 2013      78
  33. Major biomass co-firing facilities in Poland, by investor and average boiler age, 2013      79
  34. Annual sum of solar radiation per m2 of area in Poland      86
  35. Area of solar panels in Poland (‘000 m2), 2000-2012      87
  36. Solar collectors installed in Poland under the NFOSiGW scheme, 2013      88
  37. Growth of photovoltaic installations in Poland (MW), 2008-2013      89
  38. Average capacity utilisation rate in Poland (%), by electricity generation technology, 2013      90
  39. Breakdown of maintenance costs for solar farms in Poland (%), 2013      91
  40. Breakdown of capital costs for solar farms in Poland (%), 2013      91
  41. Estimated number of heat pumps installed in Poland and change (%), 2005-2012      99

 

List of tables

  1. Available connection capacity in Poland (MW), 2013      23
  2. Structure of the reference price in accordance with the RES bill      32
  3. SWOT analysis for the RES sector      34-35
  4. Wind farms existing in Poland, 2014      46-47
  5. Wind farms under construction in Poland, 2014      48
  6. Wind farms planned in Poland, 2014      49-51
  7. List of agricultural biogas plants operating in Poland, January 2014      68-69
  8. Correction coefficients for individual categories of biogas systems in Poland, 2013-2017      71
  9. Agricultural biogas plants planned in Poland, 2014      72-73