Monday, 6 October 2014
Poland's fears of electricity price increase
.jpg) |
| Minister Maciej Grabowski |
New minister for
environment, Maciej Grabowski, during interview with Polish Press Agency
pointed out that “if complying with EU
standards of lowering air pollution level will mean for Poland significant
increase of energy price, it might be a reason for Poland to not follow EU’s
environmental scheme”. The interview took place during European Forum of Innovative
Ideas in Sopot and related to minister’s opinion on the upcoming EU’s energy
summit.
During
last week of October ( to be precise: October 23-24) EU summit in
Brussels on the energy matters will take place. The summit aims on finding
agreement between member states on a new
target of CO2 emissions’ reduction in the European Union
after 2020. European Commission suggested
overall reduction of CO2 emission by 40 % until 2030, with the “intermediate”
goals of 27 % CO2 reduction until 2020. Energy-climate
package, valid until 2020, assumes
20 % CO2 reduction and 20 % of renewable
energy in total energy mix.
Minister Grabowski
does not criticize project as such but he fears that described obligations will
influence the energy availability to Polish households, due to the increase of
price of electricity.
Poland’s electricity
price is still rather low (comparable price to Germany; significantly lower
than Italy). In 2014, the average electricity price was equal to 0,56 zloty/kWh
(around 0,15 €/kWh à approx. 35 €/MWh). The ministry fears that higher price of emission
allowances and necessary investments in renewable energy sector will cause
significant increase of this price.
At
the moment, as part of the climate package
in force until 2020, Poland and other countries in the Central/Eastern
European region are entitled to free
permits of emissions for production of electricity, but this number is gradually
decreasing (to reach zero in 2020.).
Free emission permits (EUA) are entitled for sectors most vulnerable to escape outside the EU, where the climatic restrictions do not apply. These include cement, paper,
and chemistry production industries. The
current package has also diversified EU
CO2 reduction target in sectors not covered by the EU emissions trading scheme (such as
transport, agriculture and construction).
Less wealthy countries
may even increase emissions
in these sectors - Poland may be increased
by 14 % by 2020.
The coming EU summit
on this issue will clarify the target that community would like to reach. It is
unquestionable that the environmental targets are very important parameters and
shall not be ignored, but in the same time the economic situation of member
states needs to be taken into consideration too. Poland should diversify its
energy mix ( the dependence on coal is making environmental targets difficult
to reach but also, as we observed over
last few months, many coal mines start to be not financially feasible), but
this step needs careful and accurate planning if the price stability should be
maintained.
Read more:
Official website of the Minister of Environment: http://www.mos.gov.pl/kierownictwo/zk/1.html
Average Electricity Prices in Poland: http://zaklad.energetyczny.w.interia.pl/
Source article: http://biznes.onet.pl/grabowski-nie-chcemy-by-porozumienie-klimatyczne-z,18567,5659870,1,news-detal
Picture (Minister Grabowski): http://pl.wikipedia.org/wiki/Maciej_Grabowski_(ekonomista)#mediaviewer/File:Maciej_Grabowski_2014-09-22_(cropped).jpg
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