Thursday 5 March 2015

Influence of EU climate package on Polish energy independence from Russia

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“Gazeta Bankowa” – one of the most influential and, in the same time, the oldest economic newspaper in Poland, has published very interesting article about the influence of EU’s environmental protection (climate package) guidelines on the Polish energy independence from Russia.




Poland, under the influence of the EU climate restrictions, uses less coal, which are destructive to the national mines and creating a need to burn more and more gas, which is largely imported from the East (mainly Russia).

Poland consumes 16 billion m3 of natural gas a year, of which almost 3/4 are imported. In 2013, 77 percent of the imported gas came from Russia.  90 % of Polish oil coverage is also coming from Russia. This is one of the main causes of the difficulties of Poland in the development of foreign trade.

At the same time natural gas consumption in Poland is growing and, according to government and market forecasts, will also grow in the coming years.

Firstly, power companies in Poland, especially those state-owner are planning to construct power plants using gas. Once they are launched, gas consumption in Poland will grow by as much as 20-30 percent.

Secondly, in many Polish cities - in the fight against the so-called  low emissions (as dictated by the EU environmental directives) and for state and local government grants - the coal stoves will be replaced by the gas-fired burners.

Thirdly, in Poland, in the newly built houses, gas - as a source of heat - definitely wins with coal, but also from renewable energy sources, for which we also have a lot of native resources. And the state does almost nothing to change that.

Rising gas consumption limits involvement of the national carbon market ( mines and coal resellers) and deepens country’s dependence on energy imports from Russia. Domestic gas production is not growing and there is not high chance of change to this situation. Poland does not have large reserves of conventional natural gas and the optimistic climate for shale gas exploration - in large part due to the incompetence of the current government - is still out of the scope. LNG terminal in Swinoujscie, which is to be launched in 2015, cannot fully cover state’s need for gas.

Increased consumption of gas and decreased consumption of coal is primarily due to the EU's policy on the environment, especially the EU's climate policy. As part of this policy, the industries that release into the atmosphere carbon dioxide ( mainly electricity producers) are covered by the EU CO2 emission reduction system. Within this system, they have been granted emission limits for whose they have to pay (by purchasing limits to cover “surplus production”). The problem is that these limits from year to year are getting smaller and smaller, and eventually all major emitters of carbon dioxide in the EU have to pay for each tonne of CO2 emitted. For Polish companies it is especially painful, because the most commonly used source of energy is coal. For these reasons, gas-fired power stations are gaining popularity.

It is very unfortunate that the representatives of the government are not fully aware of the consequences our growing dependence on gas can have. New LNG terminal will not solve the problem. The only possible scenario would be increase of gas imports from the suppliers different than Russia. In neighboring Lithuania, there is new LNG terminal being constructed, but still, the amounts, which can be imported, do not cover the demand of 35-million inhabitants country.








Based on:


http://biznes.onet.pl/wiadomosci/energetyka/zagazowani-na-amen/r2g1m

Picture:

http://www.linkiesta.it/sites/default/files/uploads/articolo/immagine-singola/gas.jpg

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