Cleantech 4 Spring 2013 by Cleantech Poland LLC

The Polish Wind Energy Association (PSEW) is working to show political decision makers how they benefit from passing a law favorable to renewables.

Arkadiusz Sekściński on the board of a new PSEW, moving forward Ark adiusz SekSciNski, PSEW

picture: SZYMON SZCZESNIAK

ADVERtORIAL

PSEW: A call to leadership save the future of renewables

ncertainty is the word that perhaps best describes the current status and development perspectives of the wind sector in Poland. The lack of a new law on renewable energy, the collapse of the green certificates market, and certain foreign investors withdrawing from Poland are worrying the sector. Paradoxically, the current crisis may inspire action to help the green energy sector back on its feet. Polish decision makers are well aware that they either create a stable legal framework as soon as possible or can forget billions of investments in renewable energy in Poland. URGENT NEED The Polish Wind Energy Association (PSEW) together with other industrial and expert organisations, including the Polish Confederation of Private Employers “Lewiatan”, has been urging the Polish parliament and the government to address the issue of green certificates’ oversupply. There are various propositions: from purchasing surplus green certificates by the National Fund for Environmen-

tal Protection and Water Management (NFOŚiGW), and an increase in renewable energy sales target from the current 12 percent, to complex solutions that must be incorporated in the new law on renewable energy and include, for example, the reduction of certificates of origin generated by co-firing and large, depreciated hydropower installations. Decision makers should also take note of the cooperation between the renewable energy sector and local authorities. “Renewable energy: an opportunity for communes” was a conference held on February 20th, 2013 in the Ministry of Economy, as the result of cooperation between the Polish Wind Energy Association, the Polish Economic Chamber of Renewable Energy, the Renewable Energy Association, the Association of Rural Communes of the Republic of Poland, and the Association of Renewable EnergyFriendly Communes. FUTURE ACTION The deputy prime minister and minister of economy Janusz Piechociński could not remain indifferent to such a

united voice. The ministry maintains that the council of ministers will accept the draft law on renewable energy by the end of March 2013. The Polish Wind Energy Association is pursuing the same goals as always, but it has to face up to new challenges. One of the challenges is the integration of the renewable energy sector, experts, opinion leaders and decisionmakers to develop solutions regulating the green energy market. JOIN US NOW The upcoming annual PSEW Conference on the 24th and 25th of April, in Serock near Warsaw, may be a breakthrough in what’s the largest industry event of its kind in Poland (see back cover). The PSEW conferences to date have been attended by eminent representatives of the industry. They have demonstrated many times that PSEW voice does matter in legislative procedures. This time, cooperation inside the industry and cooperation with external partners may be of absolute key importance for the future of the renewable energy sector in Poland.

www.cleantechpoland.com | 3

editor in chief Wojciech Kość

of the

growth curve

Publisher

Parker Snyder

art directOR Hunter Diamond

Graphic designer Ola Foryś

KEY ACCOUNT

Maja Sobieszczak

principal Analyst Tobiasz Adamczewski

WRITERS

Pablo Castellanos Hunter Diamond Daniel Sola Fagorusi Maciej Gomółka Tomasz Pilewicz

PHOTOGRAPHY

Karol Grygoruk, Szymon Szcześniak, 50Hertz , Cezamat, Danish Wind Association, DLA Piper Wiater, iStockphoto, KL Gates, Klus Design, Martifer Solar, Ministry of Environment, MPTec, Photopin, Poleko, Prime Minister’s Office, SSW, Salans, UNFCCC

Editorial contact

wojciech@cleantechpoland.com (+48) 602 458 099

Advertising contact

parker@cleantechpoland.com (+48) 517 469 881

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printeR

Drukarnia Beltrani Kraków

Published by

Cleantech Poland LLC Ul. Pustelnicka 48/22 04-138 Warsaw, Poland

Dear Colleagues, Here at Cleantech, we’re not going to sit around idly anticipating the new renewable energy law. Instead, we’re going to dive deep into the market that exists, today - and here’s what we see - falling green certificate prices and a political class that’s indifferent to the kind of dynamic energy policy seen in Germany (see feature story, p 22). Our analyst, Tobiasz, observes that the forthcoming renewable energy law could promote solar photovoltaic. That’s why the indicators section in this edition of Cleantech presents the economic climate for solar, and we’re pleased to partner with SolarPraxis in the production of their March event. Another hot spot on the 2013 calendar is the forthcoming UN climate negotiations, COP 19, that will take place in Warsaw. This large, annual event is usually attended by government officials and NGOs. This time around, Poland’s minister of environment Marcin Korolec would like to open the event up to business sectors. And business, in the context of climate change, means cleantech. We’re hoping - with your help - to put Cleantech on the map when 10,000 climate stakeholders descend on Warsaw in November. So the next edition of Cleantech will analyze the COP 19 negotiations. Previous to the event, we’ll distribute a COP supplement. Invest ahead of the curve. Get involved, today. Kindest Regards, Parker Snyder Director

www.cleantechpoland.com | 5

letter

Invest ahead

Cleantech

opinion

By wojciech kosc

Tease and

Denial

How Poland has tried to build sustainable economy is back-firing and investors are going elsewhere.

Here, at Cleantech, the long overdue new

law on renewable energy is a running joke. We have been anticipating it for such a long time (since February of 2009) that we’ve now gotten used to the fact that the “new ustawa” is perpetually in the works. The most recent gossip is that the law will pass “no sooner” than the first half of 2014. To be honest, a law that takes five years to write is a law no one wants in the first place. It almost seems like the law’s arrival would bring about an uncomfortable disruption of the status quo. For renewable energ y and environmental technology, however, this is n o laughing matter. As the new law is allegedly being prepared somewhere in the ministry of economy, renewable energy businesses are in retreat. New foreign companies have closed shop before they were able to set it up. Established investors are holding up development of renewable energy portfolios – if they can afford to, because if your footing in Poland isn’t strong enough, your days seem to be num-

“The most recent gossip is that the law will pass ‘no sooner’ than the first half of 2014. To be honest, a law that takes five years to write is a law no one wants in the first place.

6 | CLeantech |Q2 2013

bered: financing is hard to come by and your green certificates are worth a third of what they were a year ago. And here we touch upon the very heart of what’s wrong with Polish renewables. Poland’s renewable energy sector is based on a false foundation. The support system is the same for utilities co-firing biomass with coal and producers raising greenfield wind projects. The result is enough “green power” to live up to the 2020 targets, but the real targets of sustainability, security and distributed ownership are lost. There’s an unnerving similarity in the way the renewables’ market has been constructed and how Poland became a leader in meeting the Kyoto Protocol’s emissions reduction target. On both counts, the results were there, but a closer look into how they were achieved reveals that Poland shortcut the road to the target a great deal. The cut in emissions was a by-product of market transformation; whereas co-firing was favored because the law was constructed to award the cheapest - and not the most sustainable - forms of renewable energy. On both counts, real change is blocked. What we’re seeing is that any attempt at reforming the EU ETS reform is labeled a disaster for the Polish economy and the new law on renewables looks like a tease and denial game played by the government and industry for reasons that are unknown.

Contents

contents

p/31 Long Road to Warsaw (COP 19) p / 3 2 CONTEST winner Daniel Sola Fagorusi

p/36 SOLAR SECTION Bank debt Developer plans What’s hot in solar? EU Markets China anti-dumping SSW: rooftop PV Solar directory Solar survey Martifer profile Legal issues Warsaw solar PV

p/38 p/40 p/42 p/44 p/45 p/46* p/47 p/55 p/56 p/58 p/61

p/62

GREEN POWER in buildings p/6 4 Low emission buses p/66

Cezamat a new R&D facility

p/67 * SWEDECENTER Szczecin office buildings

p/8 PHOTO ESSAY Szymon Szczesniak

p/1 9

p/16

GREEN EVO AWARDS

p/20 Green certificates at an all time low

p/70

p/17 What’s hot at POLEKO?

p/21* PwC on small scale power production

Cleantech essay contest RESULTS

p/17

Kyoto Protocol: A final breath p/1 9 PSEW gets a new board

GL Garrad hassan offshore wind

p / 6 8 Luiza Jacob Eco inspired designer the LED House

p / 7 2

p/22

p/78 Julia Michalak, portrait

(po polsku)

p / 7 9 * SAVILLS going for green tenants

ENERGIEWENDE

*A d v e r t o r i a l

www.cleantechpoland.com

8 | CLeantech |Q2 2013

photo essay By szymon szczesniak

Waiting for a sunny day Rows of solar PV panels are covered with snow on an overcast February morning in Czerniewice in the province of Łódź. Typically not associated with sun, Poland gets some 1,200 to 1,600 hours of sunlight annually, most during the spring and summer, certainly enough to justify the development of PV. A support scheme for PV has been drafted in the ministry of economy, but isn’t expected to enter into law before 2014. That’s why the 1.2 MW installation from Projekt-Solartechnik is one of a just a few of its type in Poland.

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Cleantech Poland connects capital and ideas in Poland’s conversion to a low carbon economy. Ul Pustelnicka 48/22, Warsaw info@cleantechpoland.com PwC provides services in assurance, advisory and tax & legal. A global services company, PwC has been in Poland for 20 years. Al. Armii Ludowej 14, Warsaw www.pwc.pl SSW provides comprehensive tax and legal advisory services, counting large energy companies as clients. Rondo ONZ 1, Warsaw www.ssw.pl

Company index 50 Hertz, (p. 18) n A A+ Tech, (p. 48) ABB, (p. 48) Agnes Elektromax, (p. 48) Ahmadu Bello Univ, (p. 74) Alumero Metal Components, (p. 48) Ammono, (p. 35), Apollon, (p. 42) Assoc of Renewable Energy-Friendly Communes, (p. 3) Association of Rural Communes of the Republic of Poland, (p. 3) Aton-solar, (p. 48) Avizo Nieruchomosci, (p. 49) n B Bloomberg, (p. 18) BOS Bank, (p. 71) BOŚ EkoProfit, (p. 38) n C Canadian Solar, (p. 49) Center for Advanced Materials, (p. 66) Chroscinski Solartechnik, (p. 45, 49) Climate Action Network EU, (p. 78) Consus, (p. 11) Cortino Wind Group, (p. 24) Czech Ministry of Industry and Trade, (p. 44) Czysta Energia PV, (p. 40, 49) n D Deutsche Energie Agentur, (p. 61) DLA Piper, (p. 44, 60) DMS, (p. 75) Donauer Solartechnik Vertriebs, (p. 49) DONG, (p. 26) Dream Nation, (p. 69) DTZ, (p. 75) n E EasySolar, (p. 49) Eco 3 Energy, (p. 49) Eco in, (p.16) Eco-Convert, (p. 50) EcoJura, (p. 50) EcoVoltaika, (p. 50) EDP Renewables, (p. 19) EEL Events, (p. 76) Ekotech, (p. 16) Energy Glass, (p. 43) ENTSO-E, (p.18) EIP, (p. 38, 61) Esperotia, (p. 35) EU Pro Sun (p. 45)

10 | CLeantech |Q2 2013

Can't remember where a company was mentioned? Here's our index to help you out.

EurActiv, (p. 18) European Photovoltaic Industry Assoc, (p. 42) Eversheds, (p. 59) Evertec, (p. 50) n F FRONIUS International, (p. 50) Frost & Sullivan, (p. 71) n G Gamesa, (p. 19) GdF Suez, (p. 26) Georyt Solar, (p. 50) German Ministry of Econ and Technology, (p. 61) GL Garrad Hassan, (p. 18, 19) Golden Sun, (p. 43) Green Evo, (p. 16) Green Power Development, (p. 24) Greenfield Wind, (p. 35) Greenpower, (p. 76) Greentechnik, (p. 50) Grontmij, (p. 75) n H Hanwha SolarOne, (p. 51) Heinrich Boll’s Foundation, (p. 24, 28) Hewalex, (p. 38) Heliopwer, (p. 38) Horizone Studio, (p. 75) Hydroergia, (p. 16) Hymon Energy, (p. 51) n I IEO, (p. 3, 62, 75) IH Solar, (p. 51) Inst Structural Research, (p. 62) Izodom 2000 Polska, (p. 16) n J Jakusz, (p. 16) Jetion Solar Europe, (p. 51) n K Kirchner Solar, (p. 40) KL GATES, (p. 59) Kluś Design, (p. 71) KRD Global, (p. 51) Kulczyk Investments, (p. 19) n L Lars, (p. 16) Lewiatan, (p. 3) M&W, (p. 52) n M Macquarie, (p. 44) n Makroterm, (p. 16) Martifer (p. 44, 56) Ministry of Economy, (p. 3) MP Tec Solar, (p. 51, 61) MZA, (p. 64) n N NFOŚiGW, (p. 3, 24,

40) Nigerian Embassy, (p. 75) Nissan (p. 13) Noerr, (p. 75) n P PGE, (p. 19) PLGBC, (p. 75) POLEKO, (p. 16, 17, 76, 77) Polish Chamber of Com (KIG), (p. 28) Polish Economic Chamber of RES, (p. 3) PPE (PPX), (p. 11) Porr, (p. 75) Powermeetings (p. 76) Pravda Capital, (p. 20) Projekt-Solartechnik, (p. 9) PSE, (p. 12) PSEW, (p. 3,18, 76) PV Partners, (p. 52) PwC, (p. 19, 21, 35) n Q Qenergy, (p. 16) n R REC Solar, (p. 52) Remor, (p. 52) RenoSolar, (p. 52) RenVolt, (p. 52) Revolution 6, (p. 52) n S SALANS, (p. 60) Savills, (p. 79) Selfa, (p. 53) Senersun, (p. 53) Sharp, (p. 53) Skanska, (p. 62) Skorupa, (p. 53) SKORUT Systemy Solarne, (p. 53) SMA Solar, (p. 54) Solar bankers, (p. 42) Solar Development, (p. 53) Solar Future Energy, (p. 54) Solar-Bau, (p. 45, 53) Solar-Energy, (p. 54) Solaris, (p. 64) SolarMax, (p. 38) Solarpraxis, (p. 76) Soldar, (p. 54) Sonnen Systeme, (p. 40) SSW, (p. 46, 58, 61) SwedeCenter, (p. 4, 67, 75) n T TBK Ecoenergy, (p. 54) Trina Solar, (p. 54) U UNFCCC, (p. 31) URE, (p. 19) US Comn merce Department, (p. 45) n V Vetro Polska, (p. 54) n W Waldo (p. 0), Warsaw Tech, (p. 61)

I nd I ca t o r s R E S D E V E LO P M E N T Wind

2,500

Hydro

connected RES power

analyst ' s V I E W

Biomass

Biogas

Solar

2,497

1,250

Source: ure

957

0 2007

2008

2009

2010

2011

T o b iasz A d a m c zews k i P rin c ipal A nalyst

Q4 2012

By the end of 2012, about 2,497 MW of wind power have been completed in Poland. In comparison to 2011 year-end (1,616 MW) this is a 55% increase. Green certificate

Certi f i c ates o f origin

PLN / MWh

183 100.48

0 Apr 2012

Aug 2102

Jun 2012

Oct 2012

Dec 2012

Source: polish power exchange

279

139

Feb 2013

There is an estimated 3.3 GW oversupply of green certificates on the market due to speculation and low 2011 and 2012 RES targets (10.4%). MOVING AVG. WEEKLY PRICE

P ri c e o f E le c tri c ity

PLN / MWh

192

165.80

100

118.37

Aug 2012

Sep 2102

Oct 2012

Nov 2012

Dec 2013

Source: polish power exchange

300

200

Jan 2013

The low price of electricity is yet another disadvantage to the renewables community, whilst coal prices remain low due to cheap gas and low demand.

CARBON PRICE 12

EUAs

C U R R E N C Y R AT E S

futures

€ / ton of CO2

CERs

10.03

4.50

9.47

€ EUR

3.42 1.17

Mar 2012 CO2 units EUA CER

Aug 2012

Feb 2013

in 1 11.02.13 price change month € 4.48 € 0.35

Source: CONSUS

-24.32% - 18.60%

POLISH ZŁOTY (PLN)

$ USD

4.34

4.18

The current support system for renewable development in Poland seems to have failed. The fundamental price signal, the value of green certificates (GC), has plummeted over the last six months. On the positive side, the green certificate crisis has prompted action from decision makers, who are looking into options to curtail the negative trend. It is becoming obvious that significant structural changes need to be made for the system to be viable. If passed, the law would cut support for co-firing by a third and in effect create an additional 30% increase in demand for GCs. Recently, ministry of economy officials suggested several other remedies, including banning the banking of GCs that are over 24 months old. As for the carbon market, Maciej Wiśniewski, President of Consus Brokerage House, told Cleantech that the current EUA price of €4-5 is a result of the growing surplus of the allowances, which today is estimated at about 1.5 billion units. The acceptance of the back-loading possibility only should increase the price by €3-4.

3.51

3.50

3.11

2.50 Mar 2012

change in 5 months

Currency

-44.96% - 85.11%

€EUA $CER

Aug 2012

Source: NBP

2006

302

-1-

Feb 2013

in 1 change in 5 01.02.13 price change month months PLN4.21 PLN3.07

3.39% 0.13%

0.16% -8.08%

www.cleantechpoland.com

| 11

I nd I ca t o r s E x pert guest

PSE

Poland's tso

-2Voltage

P O L A N D ' S trans m ission N E T W O R K

Cleantech asked Henryk Majchrzak, President of Polskie Sieci Elektroenergetyczne (PSE) about his perspectives on the development of the PV market in Poland.

220/440/750

Gdańsk

Olsztyn Szczecin Bydgoszcz

Poznań

H enry k Ma j c hrza k P R E S I D E N t, P S E

Łódź

Would a significant increase in micro, small and large PV installations have an impact on the stability of the grid?

If the new law on renewables were to take effect, what perspectives do you see for the PV market development until 2020? The renewable energy law is being developed within the so-called energy tri-pack, which also includes proposals to the energy law and gas law. The law is likely to favor small solar PV installations over large installations. It maintains the support scheme for PV installations larger than 100 kW by way of green certificates while supporting smaller installations with feed-in tariffs. In both cases the support will be for 15 years and will last at most until 2035 in the first case and 2027 in the second. Soon, when the renewables law will enter into force, we will be able to tell what development scenario will be implemented in Poland. How much nominal power is the Polish power grid capable of taking in from PV currently and how much by 2020? According to estimates from the ministry of economy, the proposed support scheme would enable 50-90 MW of new PV power to be installed annually, by 2020 this should

12 | CLeantech |Q2 2013

Lublin Wrocław

transmission lines

Katowice Kraków

Rzeszów

220 kV 440 kV

Source: Pse s.a.

The proposed support scheme promotes micro and small PV installations. However, we are aware that developers are likely to file applications for connecting large projects with nominal power ranging from tens to hundreds of MW. If all planned investments won’t be clustered into one area, then their impact on the grid’s stability should not be significant. It is important to note, however, that micro and small installations will periodically decrease the demand for energy coming into the distribution network from the transmission network.

WARSZAWA

750 kV

H E S A I D I T. . . accumulate to 600 MW. I estimate that such a quantity won’t cause any connection problems. It is assumed that small and micro installations will be connected to medium and low voltage networks. PSE is currently analyzing what the maximum amount of power the national grid will be able to connect by 2020, while maintaining an adequate safety level of the system’s functioning. From the TSO’s perspective, what technology is more advantageous: photovoltaic or wind power? In the energy grid there will be room for both PV and wind power, as long as their development will be within reasonable limits. It is important however to highlight that both are large sources whose function does not exclude the other. The best sunlight conditions usually occur during non-windy summer days. Nevertheless, there will be days when weather conditions will allow for both energy source types to work simultaneously. At times, when production exceeds demand, it would be beneficial to store excess power and use it when the demand rises. Unfortunately, large-scale power storage systems remain in the R&D phase, while present battery-type solutions are too expensive for their use to be economical.

“If all planned investments won’t be clustered into one area, then their impact on the grid’s stability should not be significant." “... the proposed support scheme would enable 5090 MW of new PV power to be installed annually, by 2020 this should accumulate to 600 MW." H enry k Ma j c hrza k P R E S I D E N t, P S E

I nd I ca t o r s S O L A R R A D I AT I O N an d C O MM E R C I A L R O O F T O P S

res c o m pare d

Source: Joint Research Center (EU), Colliers International

Szczecin Toruń Poznań WARSZAWA Łódź

Wrocław

430 kW

135 kW

WAREHOUSE (mln sqm) EXISTING SPACE

REGION

Katowice 1100

1200

UNDER DEVELOPMENT EXISTING SPACE

( kWh/m2 )

0.043 0.086 0.031 0.020 0.077 0.020 0.006 0 0

ground mounted

1MW PV installations

Bulgaria

Slovakia

Czech Rep.

7,327,224 € 372 822 € 87.60

5,404,322 € 430 483 none

10,505,445 € 460 1,971 none

The FIT was lowered and a The FIT was eliminated for The FIT was eliminated for new 39% retroactive grid access fee new installations. installations and a 26% retroactive tax was introduced. was added to current projects.

≤ 16,000m2

rotor: 47m blade: 21m tower: 40-65m

reac tor: 30m3 CHP unit: 30m2

102-130 MPGe 0.205-0.161 kW/km

Source: Nadchodzi Era SłoNca, Internal Research, Eurostat, APEE ZP

Population 2010 FIT Installed to date MW Current FIT How did the law change?

mwh/year

300 x Nissan Leaf

Rooftop PV projects between 100 kW - 1MW have the highest coefficient in the proposed law on renewable energy: 2.85. Moreover, smaller projects could benefit from a decent, 1.3 PLN/kWh (≤10 kWh) and 1.15 PLN/kWh feed-in-tariff. This is why well placed rooftops are interesting targets for PV developers.

T he d ays o f solar glory

UNDER DEVELOPMENT

2,590 1,350 984 894 713 165 130 95 42

Warsaw Górny Śląsk Central Poland Poznań Wrocław Gdańsk Kraków Toruń Szczecin

Kraków

1150

1300

950

1 Mw

Gdańsk

1250

-3-

A 1 MW PV installation is able to support about three hundred electric cars running up to 50 km per day. The same can be said about a 430 kW wind turbine or a 135 kW biogas plant. Each technology has its pros and cons. PV, for example, takes up a lot of space but doesn’t require much maintenance, wind farms require costly wind flow analysis but can be placed mostly anywhere and biogas plants need substrates to run but provide stable power. Either way, powering a car with a private renewable installation significantly reduces its carbon footprint, requires fewer visits to the mechanic’s and zeroes out the cost of gasoline, coolant and oil. Instead of spending PLN 10,000 on gas and car maintenance per year, investing in a small RES installation is a worthwhile thought. Source: nissan, norwin, tedom, siemens

Germany v. poland Pv and ste

The German solar market is a benchmark in terms of market maturity in both photovoltaic (PV) and solar-thermal (STE) sectors. This is why we compare Polish solar power development to the neighbouring country. The discrepancy in both cases shows that the gap is wide. While solar thermal development is about a tenth of Germany’s, the Polish PV sector is much further behind.

305.94

PV Germany

0.03

Market gap

PV Poland

Market gap

STE Poland

kWp/1000 persons

128.24

STE Germany

16.52 kWth/1000 persons

20%

40%

60%

80%

Source: Trends and Market, ESTIF June 2012, URE, NFOŚiGW, Internal Analysis, Eurostat

T he m ar k et gap

100%

www.cleantechpoland.com

| 13

-4-

I nd I ca t o r s P ropose d c oe f f i c ients an d gvn ' T b usiness c ase SECTOR

coefficient

(per year)

TYPE

CAPEX (PLN,

OPEX (PLN,

MWh/ YEAR

COEFFICIENT

1.50

1.45

Biogas*

15.5

2,800

7,000

1.45

1.40

6.1

50.4

950

2.75

1.10

3.5%

Wind

6.2

175

2,200

0.95

0.75

3.5%

1.30

*Biogas CHP installations are additionally supported with red certificates and the sale of heat

1.05

0.95

1.70

1.40

1.15

0.30

20%

1.15

2.85

5.5%

2.75

5.5%

2.45

5.5%

1.20

0.90

2.5%

1.80

1.60

1.5%

1.70

1.5%

2.00

1.5%

2.30

1.20

R E S per c entage regulation

million)

thousand)

ASSUMPTIONS 30% 8% 2.5% 270 PLN/MWh 200 PLN/MWh 19% 12%

When proposing the new law on renewable energy, the ministry of economy presented its assumptions for renewable energy business cases. The coefficients were adjusted so that all projects had a level playing field with 12% IRR. Presented above are examples of projects, as analyzed by the government. It's important to note that with coefficient adjustments many other system changes have been put forward, such as freezing the price of the substitute fee, banning free market electricity sales and limiting support to 15 years. This means that although the coefficients will be higher in most cases, tools to limit support have also been introduced. On the other hand, small and micro installations will be supported by feed-intariffs, a novelty in the Polish renewables scheme.

LEGAL MINIMUM RES PRODUCTION 20% by 2021

Previous RES legal minimum

Current RES legal minimum 20%

20 % 12% 12.9%

10 %

10.4% 7%

0% 2008 2009 2010 2011

2012

2013

Source: Ministry of Economy regulation 14. 08. 2008 and 18. 10. 2012

14 | CLeantech |Q2 2013

version 9 Nov 2012

chosen 1 MW installations (12% IRR)

degression

Source: Ministry of Economy

The minister of economy adjusts the annual renewable energy target through regulation to make sure that Poland is on track with EU objectives and to increase demand for green certificates if need be. The newest regulation increased the renewable energy trajectory from 12.9% in 2017 to 16% and to 20% in 2021. It also excludes co-firing as a renewable energy source if wholesome wood is used. Co-firing is the largest source of green certificates on the market.

for new RES law

2014 2015 2016 2017

2018

2019 2020 2021

t r e nd i ng POLAND CLEANTECH PROMOTED ABROAD In October 2012, minister of environment Marcin

Ministry of ENVIRONMENT

Korolec announced winners of the 3rd annual Green Evo contest. The point of the GreenEvo program is to help Polish environmental businesses export their products

Renewables and energy efficiency were this year's winners

abroad. The product technology needs to be as much innovative as effective and easily applicable on foreign markets. The winners of the contest get to use the Green Evo brand to market their products. They receive marketing assistance, specialized training and help with export services, all paid by the ministry of environment. The 2012 winners were: Eco in (non-toxic window sealants) Ekotech (recycling of coal ash) Hewalex (aluminum absorbers for solar collectors) Hydroergia (efficient hydro power turbines) Izodom 2000 Polska (thermal insulation of houses) Jakusz (handling explosives) Lars (innovative LED lighting solutions) Makroterm (integrated house heating systems) Qenergy (gasification solutions) The next edition of the GreenEvo contest begins in Feburary of 2013. The winners will be announced early in 2014.

TWITTER FEED @CleantechPoland GreenEvo, a program of Poland's ministry of env. last October announced new winners: a solar technology, better hydro turbine.

Oct 3

@CleantechPoland Nov 20 What cleantech segments were hot at POLEKO this year? Solar PV, biogas, waste-management. @CleantechPoland New minister of economy was appointed in Poland: Janusz PiechociĹ&#x201E;ski; he vowed to push through new law on renewables ASAP.

Dec 6

@CleantechPoland The Kyoto Protocol takes one last breath; second commitment period will be weak.

Dec 10

@CleantechPoland @EurActiv: Cyber attack on a German utility calls into question future of smart grid.

Dec 13

16 | CLeantech |Q1 |Q2 2013 2013

t r en d i n g

solar, waste: HOT SEGMENTS AT POLEKO PoznaĹ&#x201E; was well attended by solar energy equipment producers, distributors and developers. Although other sectors were represented, the solar companies appeared to be most active, in anticipation of new generous rules for solar power support proposed in the draft of the new renewable energy law. In the waste and recycling sector, innovative products were on display. New regulations, shifting responsibilities of waste management towards local government, have created a demand in the industry for modern, cost-efficient solutions. Dump trucks, excavators, shredders and other heavy equipment was presented. Some 20,000 participants could also listen to presentations, join discussions and meet other green-collared professionals during concurrently-running Clean Energy Forum. This year's participants should take note that POLEKO organizers are moving the event's date back to 7-10 October in 2013.

POLEKO

THE latest edition of THE POLEKO trade fair in

What did you achieve this year?

Turn to p 78 for an events calendar for 2013

KYOTO PROTOCOL TAKES ONE LAST BREATH ference is the amendment to the Kyoto Protocol, whereby most Annex I (developed) nations committed to further legally binding emission reduction targets. Rather than a solution to the climate crisis, the second commitment period (2013-2020) is merely a small step towards an agreement which would force all countries to take action from 2020. The Doha deal is festered with weaknesses: Canada, Japan and Russia aren't parties to the Protocol anymore. The EU, self-proclaimed climate action leader, committed to reduce what it had already planned through its climate and energy package: 20% from the baseline year 1990. Australia committed to shave just 5% off their footprint from the year 2000. The Kyoto Protocol's continuing weaknesses are also: lack of support from the US and failure to address emerging economiesâ&#x20AC;&#x2122; emissions. China, for instance, doesn't have reduction obligations under the Protocol. The newly reached amendment is rather a compromise that bought time for the global community to

UNFCC

One of the results of the Doha Climate Con-

Biding their time, wasting our time

negotiate a worldwide scheme by 2015 and have it enter into force by 2020 in concurrence with the second commitment period coming to an end. This scenario, however, isn't anything worth betting for at the moment.

www.cleantechpoland.com www.cleantechpoland.com

| 17

t r e nd i ng GERMAN UTILITY UNDER CYBER ATTACK German utility 50Hertz was hit by a cyber attack

50HERTZ

in late November that lasted five days, knocking its internet communications systems offline, in the first confirmed digital assault against a European grid operator, the EurActiv portal reported in December. “It was a DOS (Denial Of Service) attack with a botnet behind it,” Boris Schucht, the CEO of 50Hertz told EurActiv. “It blocked our internet domains so that in the first hours, all email and connectivity via the internet was blocked,” he said. DOS attacks involve thousands of requests being sent

Should have locked the door

to a server each second to clog up a system’s functioning. The attack was mounted from IP addresses in Russia and Ukraine. The security breach was discussed at an assembly meeting of the European Network of Transmission Systems Operators for Electricity (ENTSO-E). 50Hertz is one of Germany’s four transmissions systems operators. It supplies more than 18 million people with electricity largely from wind and solar. 50hertz is one of world’s leading renewable transmitters, lighting up north and eastern Germany, as well as CEE. Power grids are vulnerable to cyber-attacks because they depend on a multitude of embedded systems, communicating with each other via a potpourri of wired, wireless, cellular and dial-up modems, that use a combination of TCP/IP and proprietary protocols, EurActiv reported. The EU requires that at least 80% of electricity users in the EU be equipped with smart meters by 2020. Utilities would have to spend nine times more than at present to insure against a ‘digital pearl harbour’, according to a recent Bloomberg survey.

The hackers haven't yet derailed Germany, p 23

TWITTER FEED @CleantechPoland Jan 9 PSEW, wind association, appoints new president: Jarosław Pole; new board: I. Kielichowska, A. Sekściński, A. Wojnarowska and D. Żygowska. @CleantechPoland Jan 23 GL Garrad Hassan & offshore wind: it's going to happen in Poland, but no one knows when - offshore training was held Jan 23. @CleantechPoland Ministry of Finance blasts RES law; the support system that is in the draft "is going to be too expensive" - future of RES uncertain.

Jan 28

Feb 10 @CleantechPoland Green certificate prices are at an all time low, 9 months of gradual decline calling into question the future of Poland's RES market Feb 11 @CleantechPoland The EU budget has been released for 2014-2020; some €100 billion for Poland; how much will go to renewable energy financing?

18 | CLeantech |Q2 2013

The Polish Wind Energy Association, PSEW,

DANISH WIND ASSOC.

elected a new president in early January of 2013. Jarosław Pole, formerly with Gamesa and the Portuguese power producer EDP Renewables, was chosen to lead PSEW, an organization that has come under pressure from its members. According to those familiar with the board changes, the vote was widely seen as a referendum on falling confidence in the organization to secure its members’

New crew at the helm

interests, in the wake of a proposed renewable energy law seen as unfavorable to wind. The draft law, not yet through parliament, would reduce support for onshore wind by as much as 10 percent. Furthermore, the falling price of green certificates has reduced the profitability of wind farms, putting further pressure on PSEW to work in the interests of its members. Last year PwC, a consultancy, at the behest of PSEW, issued a report that calculated a negative net present value for current wind projects under the proposed regulations. No rational developer, the report concluded, would begin a wind project because they could never recuperate the cost of their investment. The analysis however assumed higher than usual CAPEX, and according to one wind developer, its conclusions were aimed at lobbying for better subsidies. Izabela Kielichowska, Arkadiusz Sekściński, Agnieszka Wojnarowska and Dagmara Zygowska were elected to the board of the organization. Mr. Pole replaces Krzysztof Prasałek, a Szczecin wind developer.

GL GARRAD HASSAN: BALTIC OFFSHORE EASIER THAN N. SEA böse, head of the German offshore department in GL Garrad Hassan. “There have already been German Baltic projects, so lots of measurements exist, which could be transferred to the Polish market,” he added. Although there's no offshore wind on the Baltic Sea's Polish waters yet, early permits have been awarded. In late October 2012, the RES branch of the Polish Energy Group (PGE Energetyka Odnawialna S.A.) received grid connection terms for 1,045.5 MW. Two and a half months earlier, Kulczyk Investments Group also received connection terms for their 1,200 MW Bałtyk Środkowy III offshore project. By the end of 2012, some 2,497 MW of installed wind power projects have been completed in Poland, compared to the 2011 year-end figure of 1,616. The proposed RES law would however decrease support for onshore wind by 10%, while favoring offshore wind with a coefficient of 1.8.

50HERTZ

During an offshore wind training, GL Garrad Hassan, a global renewables consultancy, talked about the challenges of offshore wind in the Baltic. “From a technical point of view, developers noticed that the Baltic sea projects are easier and less risky than the North sea ones. Once you get the legal issues sorted out, the Baltic region will be attractive for investors and project developers in Poland,” said Peter Froh-

Poland's offshore potential is 5-6 GW

Missed an event? Check our calendar p 68.

www.cleantechpoland.com

| 19

t r en d i n g

POLISH WIND ASSOC. NEW BoARD

t r e nd i ng GREEN CERTIFICATES AT AN ALL TIME LOW ish government’s support scheme for renewable energy production, has been falling for nine months now. The price of green certificates, awarded for most types of renewable energy, were valued at PLN 100.48 PLN (about €24) on February 14. The downward trend for green certificates has been giving the renewable energy market heavy shocks of late, as the sector requires a stable certificate price to ensure profitability. The price has not dipped this low since certificates were first traded on the Polish Power Exchange in 2009. Traditionally, the price of green certificates has traded slightly below the substitute fee, which is set annually by the Energy Regulatory Office (URE). In 2012 the substitute fee was 286.74 PLN (about €69). Stakeholders in the coal sector say the boom in wind energy production is at fault, while renewable energy producers claim the use of biomass in co-firing operations has flooded the market with an oversupply. A would-be cure for this unfavorable trend could be

50HERTZ

The price for certificates of origin, the Pol-

Got to get out of this business

the implementation of the proposed RES law, which would reduce the value of a certificate from co-firing by two-thirds, onshore wind by a tenth, and depreciated hydropower plants to zero. Alternative solutions are proposed, such as banning banking of certificates over 2 years old or mandatory certificate purchase if their price falls below 75% of the substitute fee.

Read about an energy policy that's working p 23.

EU FINANCIAL FRAMEWORK 2014-2020 In early February EU leaders finally agreed on the

EUROPEAN COmMISSION

EU’s 2014 - 2020 multiannual financial framework (MFF), in other words, the EU budget. The European Parliament still needs to put it to a vote and specific regulations need to be drawn up for the budget's implementation. The trillion-Euro budget will

Dividing a trillion euro pie

20 | CLeantech |Q1 |Q2 2013 2013

have a big impact on Poland, which is scheduled to receive some €106 billion, most of which will be spent via cohesion funds. EU leaders also agreed that a fifth of the budget will be tied into sustainable, climate friendly development. “Climate action objectives will represent at least 20% of EU spending in the period 2014-2020 and therefore be reflected in the appropriate instruments to ensure that they contribute to strengthen energy security, building a low-carbon, resource efficient and climate resilient economy that will enhance Europe's competitiveness and create more and greener jobs” the agreement states. Poland has emerged as the greatest beneficiary of EU funds, which should ensure economic growth until at least 2020. The greening of funds will also mean that despite support instability for the RES sector through national legislation, many, mostly small projects, will become viable from the EU initiative.

EU budget funds low-emissions buses, p 66.

ADVERtORIAL

SZYMON SZCZEśNIAK

Homeowners could one day install solar panels and sell the excess energy they don’t consume. Sounds far fetched? Well it could be, if unnecessary obligations are imposed on this new class of “pro-sumers”

Sales of excess energy from micro-installations are threatened with VAT

TOMASZ BARANCZYK, PWC

PwC: sales of excess energy are threatened with VAT

olar energy installations on rooftops are not all that common in Poland. This is likely to change. One of the main assumptions of planned regulatory changes in the area of renewable energy is to support the development of micro-installations, such as rooftop solar. Solar photovoltaic (PV) is a good example of an installation which could benefit from new regulations. New PV developments could also improve Poland’s energy security and positively influence the Polish transmission network. The ministry of economy is leading the effort to change renewable energy regulations in Poland. The ministry has proposed the introduction of feed-intariffs for micro-installations such as PV. Such a system would encourage individuals not only to produce electricity for their own purposes, but also sell excess energy to the market. “Prosumers,” or users who produce and consume at the same time, aren't uncommon in Western European markets. To promote the development of

pro-sumer economy, the ministry has decided to ease administrative burdens, for example by waiving the obligation to obtain a concession for electricity trading. According to the ministry of economy, sale of excess energy from microinstallations isn’t an economic activity, as defined in the law on Freedom of Economic Activity and thus does not require a concession. However, according to the ministry of finance, energy sales by pro-sumers could be subject to VAT in Poland. The issue of VAT in the context of small scale power production is controversial in other EU countries and will be subject to a verdict by the European Court of Justice. If VAT remains an obligation, it could

result in increased financial as well as administrative difficulties for prosumers, which may, in turn, impede the strategic progress of micro-generation of electric power in Poland. For the benefit of energy supply in Poland, the ministry of economy has tried to encourage individuals to get involved with micro-installations. On the other hand, the ministry of finance tries to maintain coherence in the application of Polish VAT rules and preserve fiscal revenue. In that context, both parties should meet to jointly decide what is more important for Poland. Let us hope that as a result of those discussions, micro-installations' development will not be hampered by the fiscal burdens of VAT.

“Such a system would encourage individuals not only to produce electricity for their own purposes, but also to sell excess to the market.” Marcin Jaworski, senior consultant PwC, Tax and Legal Department Marek Kilian, consultant PwC, Tax and Legal Department

www.cleantechpoland.com

| 21

F E AT U R E S T O RY

Energiewende (po polsku) Germany is on course to transform the way energy is produced and distributed. Poles may soon have no choice but to follow suit, or their homes may plunge into darkness. B y w o j c i e c h k os c & T ob i as z A d a m c z e w s k i p h oto g ra p h y by Da n i s h W i n d E n er g y A sso c .

22 | CLeantech | Q2 2013

Feature Story

www.cleantechpoland.com

| 23

“It costs to modernize the energy system and to develop new technologies but it pays off. Germany is clearly in good economic shape not despite the Energiewende, but because of it” Arne Jungjohan, Heinrich Boll’s Foundation

"So you heard we like wind

turbines? We do indeed," said Jerzy Głogowski, the mayor of Małogoszcz, a municipality of nearly 12,000 people in eastern Poland. In early February of this year, six hundred of the municipality's residents petitioned Mr. Głogowski to move forward with the plan to make sure that wind power developers Green Power Development and Cortino Wind Group execute a 24 MW wind farm project. Mr. Głogowski, for once, is on the same page with his fellow residents about wind power development. In contrast to other municipalities in Poland, Małogoszcz residents don’t think the wind farm will worsen their lives, nor harm their farms, two frequent arguments against wind farm development. They don’t complain that turbines will scar the landscape, either. Instead, the petitioners say, the wind farm will add some PLN 600,000 (€145,000) in real estate tax to the municipality's budget, and allow an upgrade of faulty power lines in the area. Most certainly, the residents of Małogoszcz don't view the upcoming wind investment as a step towards Poland’s conversion to a low carbon economy. Still, it would be good, if they could see how a wind farm fits in the bigger picture. After all, Poland's road to an econo-

24 | CLeantech | Q2 2013

my that's less dependent on coal is becoming quite bumpy, and the success of Green Power Development and Cortino Wind Group in Małogoszcz is bucking a negative trend. CRISIS OF COURAGE The Polish renewable energy market - foremost the wind sector - is going through a crisis. So is courageous thinking and environmental leadership. Poland, in contrast to its western neighbor, is moving away from proactively pursuing the strategic goal of a low carbon economy. In Germany, the move toward a low carbon economy has been underway for some time now, where Energiewende, or energy transition, has been ongoing for more than a decade. Energiewende is best described as a move away from centralized power, based on fossil fuels or nuclear fission, toward a distributed model of local renewable energy production. This change democratizes power, taking it from the hand of the few to the hands of the many. According to a report from Heinrich Boll's foundation, a longtime promoter of Energiewende, "under feed-in tariffs, everything worthwhile goes up quickly, and ownership of power supply rapidly transfers to the citizenry." In Germany, the number of cooperatives

Where's the love? A bride photographed adjacent the Ostrowo Wind farm that comprises 17 turbines, each with a capacity of 1.8 megawatts.

owning renewable energy installations grew nine times between 1991 and 2011, from 66 to 586. What lay the foundations of Energiewende is a system of feed-in-tariffs that promotes various types of renewable energy, depending on the technology used and the size of the installation. Germany has seen its share of renewables grow from 3 percent in 1991 to almost 20 percent in 2011, stimulating the adoption of similar incentives based on feed-in-tariffs in countries around the globe. For what it’s done to strengthen their economy and improve their energy security, Germany’s industrial attitude is something to be admired. SOOTED One of the EU’s heavy coal users, Poland has been slow to develop alternatives to fossil fuels. But recently, even these meager efforts have stalled. A law that would precipitate the development of a modern power market

Feature Story

Poland ENERGY Milestones 1989

Poland’s democratic reform begins

1990 and generate power from renewable sources is now more than two years late. Policymakers and politicians are to blame. Meanwhile, Poland’s energy infrastructure continues to age. Not to mention that the disastrous global effects of climate change aren't subject of any serious debate by the Polish political leaders. Most of the senior leadership in the ministries of finance and the treasury are opposed to the new renewable energy law, currently making it’s way through the council of ministers. During the latest round of changes to the draft law, the treasury ministry proposed that support for renewable energy be reduced, that the timeframe of support be shortened, and that forms of distributed energy receive meager subsidies from the National Fund of Environmental Protection and Water Management. A source close to the government told Cleantech that the treasury ministry’s objections are due to the owner-

ship that the ministry has over several utilities that have invested in co-firing facilities that burn biomass along with coal. Although this practice qualifies as renewable energy, and is one of the cheapest ways to meet the EU’s requirements, it’s environmental benefits are dubious because co-firing requires vast amount of wood pulp to be imported from distant sources. The draft law proposed that support for co-firing be cut, which would undermine many of the utilities investments in co-firing facilities. The widespread use of biomass co-firing has also helped drive down the price of green certificates from PLN 283 (€67) to about PLN 100 (about €24) in less than half a year, as vast amounts of certificates of origin keep flooding the market. A renewable energy law would provide for a complex system of public support, depending on the type of renewable energy and the installations' size. If the current draft law was ad-

Poland’s CO2 emissions fall by 19% over previous two years

2002

Poland ratifies the Kyoto Protocol

2008

Poland’s RES support regulation established

2012

Poland’s installed wind farms surpass 2 GW

2013

Poland enters third phase of the EU ETS

www.cleantechpoland.com

| 25

“By 2015, Poland will have to retire 5,000 MW of coalfired power. In theory, the gap can be closed by energy efficiency, distributed generation, and a quick passing of the renewable energy law” Krzysztof Zmijewski

opted, there would be a revolutionary shift towards micro- and mini-installations that would quite literally shift power to the people, and away from the utilities, in very much an Energiewende fashion. But analysts no longer expect the law to enter into force this year. If it does at all, it’s not likely to be before the first quarter of 2014. The delay has resonated badly in the renewable energy sector, with companies revising their plans. One example is DONG, a Danish wind developer, who is closing shop in Poland citing "stagnation" that has plagued work on the new law. Another is the French utility GdF Suez, who put a large Poland wind portfolio on hold. "We're going to hold our investments in wind energy until we're sure that regulations are stable and favorable to investments," Grzegorz Górski, CEO of GdF Suez told the press in January 2013. The company froze development of about 105 MW of wind projects. A domino effect is looming. Without the new law to boost development of renewables, Poland could fail to comply with its commitment to get to 15 percent of renewable energy in total energy consumption in 2020.

26 | CLeantech | Q2 2013

LIFT A FINGER, MINISTER Today's lack of decisive policy making is caused by a lack of environmental leadership and a political class that is hog-tied to the interest of utilities. Poland has been slow to diversify away from coal because - in contrast to other carbon emitters like the UK and Canada - Poland has actually reduced carbon emissions over the last 20 years. The reduction was 30 percent, well beating the Kyoto protocol target of 6 percent, but it wasn't due to a dedicated emissions-cutting policy. It was a collateral “benefit” of the plunge the Polish industrial activity took in early 1990s, following the collapse of the socialist economy. Some Poles such as the minister of environment Marcin Korolec would like Poland to retain the gratuitous benefits of having 1988 chosen as the base year for the Kyoto Protocol. He has petitioned hard to ensure Poland can sell their reductions to other countries who have failed to meet their targets. "Emissions were reduced and it is a hard fact," said Mr. Korolec in London in November 2012. When he continued to explain how the reduction happened, however, he spoke of "a lot of effort and significant cost to restructure the

Prime minister Donald Tusk at the coal fired power plant in Belchatów

Feature Story

P O W E R P L AY S This commentary puts forward the environmental views of the political leadership in Poland with respect to their willingness or unwillingess to embrace a low carbon economy. Prime Minister Donald Tusk Unofficially a climate change sceptic, along with most of his cabinet. Leader of Citizens' Platform (PO), a center-right party focused on stable growth, deriving its strength from middle-class voters. When recently addressing the Parliament, he didn’t mention the need to invest in a sustainable future. Mr. Tusk's preferred energy policy is to spend billions on shale gas exploration and new coal fired power plants. Minister of Economy and deputy PM Janusz Piechociński Leader of the Polish Peasants' Party (PSL), PO's coalition partner in the government. Took over from political veteran Waldemar Pawlak late last year and is now in charge of reforming the energy, gas and renewable energy laws. Politically focused on rural areas: agriculture policy and shielding farmers from reforms' cost. When hammering out coalition deals in government, renewables will be a bargaining chip to be given away. Minister of Finance and deputy PM Jan Vincent-Rostowski An influential member of cabinet with a tightfisted fiscal policy. Responsible for making sure that revenue from emission allowances remain in the state budget rather than go towards low carbon and sustainable development. Along with Minister Mikołaj Budzanowski (see below), Mr. Rostowski is reportedly holding up the renewable energy draft law at the Cabinet level. Treasury Minister Mikołaj Budzanowski A non-partisan technocrat, with an eightmonth stint at the department of climate change and sustainable development in the ministry of environment, back in 2008. Mr. Budzanowski, although experienced in environmental policy, remains responsible for the well-being of coal burning Polish utilities who have the most to lose from a pro-green and anti-co-firing renewable energy law. Minister of Environment Marcin Korolec

source: CLEANTECH ANALYSIS

Prime Minister's office

Member of the government with perhaps least leverage. Hardly a green-visionary, Mr. Korolec "saved" the Polish surplus of Kyoto’s Assigned Amount Units at the COP17 in Durban in 2011 and consistently refuses to talk about enhancing the stability of the EU ETS. "The ETS in its current shape hasn't been like this for long. We need to gather experience before we use opportunities to change it," he told Cleantech in late 2012.

economy," and concluded that "transition from centrally planned economy to a market economy is not an easy ride." Unfortunately, this accidental accomplishment has led to a weakening of the political will to implement a dynamic energy policy. Consider the current policy of the Polish prime minister and his cabinet. In October 2012, prime minister Donald Tusk spoke in the Polish parliament about his priorities for the current term. In the speech, the word "renewables" didn't show up; neither did "climate" or "environment". Instead, Mr. Tusk went on to assure that PLN 100 billion in energy investments will go towards developing more coal-fired capacity, Poland's first nuclear power plant and shale gas. Large industrial solutions seem to be favored. How could Poland achieve a cut in emissions, maintain GDP growth at the same time, and avoid laying off large parts of its workforce? Poland should look no further than Germany to see the union of a strong political will and a concerted effort to change the energy landscape for good. That's what Germany's Energiewende is turning out to be.

www.cleantechpoland.com

| 27

LEARN NEW TRICKS Energiewende succeeded in building a vibrant new energy sector that is providing jobs, promoting innovation, and deploying clean energy in a cost-effective way. According to enthusiasts, Germany has demonstrated that fighting climate change and securing a country’s economic prosperity are two sides of the same coin. Arne Jungjohan, program director environment and global dialogue at Heinrich Böll Foundation's Washington office, says that Energiewende is a bit like teaching old dog new tricks. The old dog in this case is the conventional energy sector. In Germany, Mr. Jungjohan says, it has managed to learn new tricks quite well. The same can happen in Poland, he

adds. At the moment, onshore wind is the most developed renewable energy sector in Poland. Other technologies - offshore wind, biogas, rooftop PV either haven’t developed at all yet or have to a very limited extent. "It's a shame. There could be many opportunities to create new jobs that can’t be exported, to increase energy security and to clean up the energy sector. Building wind turbines, running biogas operations and putting up solar panels on rooftops offer a lot to technicians, architects, steelworkers, or farmers," said Mr. Jungjohan. Moreover, Poland’s vast coal-mining sector could become a regional leader in carbon-capture and storage or at least in low-emission technologies. Cities, in the absence of national lead-

ership, could be proactive, as in other parts of the world, to curb emissions by developing environmentally friendly public transport or installing LED street lighting. The Polish ruling elite says there are reasons for not embracing low-carbon thinking, however. Polish politicians boast about meeting Kyoto targets while posting impressive economic growth of 150 percent in the last 20 years. But if action to clean up the energy sector further is taken, the prevailing argument is that it will be a threat to the economy. In mid-2012, a report prepared by the Polish Chamber of Commerce (KIG) concluded that the impact on Poland of the emission reduction targets that the EU is pushing for will have

T H E N : F O S S I L F U E L S a n d n u c lear 20 Years ago, Germany embarked upon a bold experiment. The government decided to transform their primary energy sector. Emphasizing diversification and moving away from central, utilityscale sources, Germany expanded it's renewable energy sector until it was 20% of primary production. Here is the current RES mix: Wind Hydropower Biomass Solar PV Waste-energy

8.0 % 2.9 % 5.4 % 3.2 % 0.8 %

Primary Energy Generation

GERMANY 1990 OTHER RENEWABLES

N AT U R A L G A S

According to Arne Jungjohan, of the Heinrich Böll Foundation, Germany's Energiewende, or energy transition, was like teaching old dog new tricks. "The old dog in this case is the conventional energy sector," he said.

SOURCES: Federal Statistical Office, Federal Ministry of Economics and Technology; Federal Association of Energy and Water Industries, Statistik der Kohlenwirtschaft, the Energy Balance Group

28 | CLeantech | Q2 2013

L IGNI T E COA L

PETROLEUM

HARD COA L

NUCLEAR

Feature Story

"striking negative effects on the Polish society and economic competitiveness." The KIG report said that the effects of implementing the EU's decarbonization policies will cause wholesale electricity prices to grow four times by 2030 in comparison to 2005. The GDP level was forecasted to decrease by 5 per cent in 2020, 10 per cent in 2030 and 12.5 per cent in 2050 due to the energy price increase, the report said. According to Mr. Jungjohan, such a report only looks at one side of the equation. "The Energiewende isn't free. It costs money to modernize the energy system and to develop new technologies but it pays off. Germany is clearly in good economic shape not despite the Energiewende, but because of it," he said.

"If the coal-powered sector had to bear full costs and pay for all the damages it creates, like health impacts on people, or ruining the water and environment, it would not be affordable," said Mr. Jungjohan. That said, there's still quite a long road ahead of Germany before coal power's dominance is no longer. Germany's emissions went up 1.6 percent in 2012, though it also must be admitted that the growth was slowed down by expansion of renewable power. UNDER PRESSURE According to Krzysztof Żmijewski, an energy expert and a secretary to the Polish government's program for low carbon economy, before Poland looks at the Energiewende as a model to fol-

low, it will have to cope with what is causing Polish fossil fuels-fired capacity to dwindle. Mr. Żmijewski observes ironically that it’s the Polish way to low carbon economy. "By 2015, Poland will have to shut down about 5,000 MW of coal-fired power, while merely 2,000 MW of new power will come online. In theory, the gap can be closed by better energy efficiency, distributed energy generation, and a quick passing of the renewable energy law," Mr. Żmijewski said. As it happens, renewables, energy efficiency and distributed energy generation are some of the prominent features of Energiewende. If it's not a proactive political vision that will drive the Polish energy transition, perhaps the threat of blackouts will?

T O D AY : T H E R E S U LT S O F A D Y N A MIC E N E R G Y P O L IC Y Primary Energy Generation

GERMANY 2011

% Change

OTHER

COAL -13.5

N AT U R A L G A S NUCLEAR

PETROLEUM

L IGNI T E COA L

-10

-1

PETROLEUM NUCLEAR

16.7

R E N E WA B L E S

RENEWABLES N AT U R A L G A S OTHER

7.1

HARD COA L

0.7

www.cleantechpoland.com

| 29

PHTOPIN

C L I M A T E N E G O T IA T IO N S

From Bali to Durban to Doha, the road to global climate accord has been extremely bumpy. Hopes are fading for the COP19 in Warsaw to buck the trend, in what amounts to a herculean effort to curb climate. By Maciej Gomółka

It’s become a worrying trend for

carbon markets. Climate change agreements that end in nothing much concrete. Doha, the capital of Qatar in the Middle East, hosted the 18th Conference of the Parties (COP18) to the UN’s climate change convention in December of 2012. Just like the three previous COPs, the two-week negotiations left behind more question marks than achievements. COP18 aimed at reviving the Kyoto Protocol with a second commitment period by proposing new emission reduction goals. The Kyoto protocol was officially extended until 2020 but the reduction goals remained low while the protocol’s Annex B wasn’t extended to entail the world’s biggest polluters. The seven billion global surplus of assigned amount units (AAUs, the Protocol emission reduction units) was carried over to the Kyoto’s second commitment period but a limit was placed on their purchase (up to 2 percent of buyer’s emissions), hampering the demand even further. 30 | CLeantech | Q2 2013

This made AAUs almost worthless, true to the fact that the countries that accumulated them - mainly post-communist economies like Poland or Ukraine - did so not because of any climate action that they undertook but because their industries suffered a near collapse following their transition to market economies. On the downside, worthless AAUs mean less money for climate action spending, at least for Poland that tied revenue from AAU sales to its Green Investments Scheme. BIGGEST POLLUTERS SAY NO Recent COP meetings have seen increasingly more conflicts and misunderstandings among nations. There are three main groups of interests in action at the climate negotiations and it remains to be seen which will dictate to others its understanding of global climate policy or block negotiations. The first group are supporters of a global accord, led by by the EU and Japan, responsible for 18 percent of global emissions.

Pos.

Country

% Total

China

23.53

18.27

India

5.83

Russia

5.72

Japan

4.04

Germany

2.63

Canada

1.82

Iran

1.80

1.75

South Korea

1.70

SOURCE: PRAVDA CAPITAL TRADING

Doha's a Desert

T O P 1 0 CO 2 Em i tt e r s

The US isn't party to the Kyoto Protocol. China has no emission reduction goals under the Protocol as an emerging economy. Canada and Japan left Kyoto in 2012 and 2013.

They accept their historical responsibility for causing the emissions, although their push towards a global climate agreement has been weakened by economic crises. The second group is so-called G77 representing developing and poor nations that see themselves as victims of global warming, a group which accounts for 10 percent of global emissions. The G77 expects radical steps from the industrial countries to fund climate change mitigation and adaptation strategies. The third and biggest group are the opponents: USA, Canada, Brazil, Russia, India, China, the Arab countries who emit over 60 percent of global emissions. They aren’t willing to take climate action until 2020, when the global accord might take effect

PHTOPIN

CLIMATE

C L I M A T E N E G O T IA T IO N S

Long Road to Warsaw After Doha it seems like a long break until COP arrives in Warsaw in 2013. But what’s taking place in between? Here are the basics of the interperiod between COPs.

BONN The UNFCCC’s headquarters are in the former West German capital city Bonn, a city known with negotiators as “Boring Bonn” partly due to the fact that no grand breakthroughs are expected to happen there. Still, a lot of background work does take place there, and each spring hundreds of sleep deprived delegates spend two weeks on tedious work, grinding at texts which six months later are presented to the Conference of the Parties (COP).

By Tobiasz Adamczewski

The international media's

coverage of the climate change is largely limited to the UN’s Framework Convention on Climate Change (UNFCCC) Conference of the Parties that takes place once a year. These negotiations, held during the Conference of the Parties (COP), are however just the pinnacle moment of what is a year-round work in various locations around the world. In between the COPs, throughout the year, a government delegate will usually travel to four official UN negotiating sessions which will last one to two weeks each. IN BETWEEN Between these four sessions many international meetings are held so that groups of countries, like the EU, or the G77, which includes developing nations plus China, can coordinate common negotiating goals and tactics. In the EU, for example, environmental ministers meet once a quarter at the environment council, while senior ex-

perts meet monthly as working parties. Each meeting requires an agenda, preparation, internal coordination and strategy. Negotiators need to find common ground, first between ministers at home, then between member states on the EU level, and then with like-minded groups of countries on the UN level. All of this consensus building takes time, and is partly the reason why the negotiations have produced little tangible outcome. DEAL MAKERS? If there were only official meetings, however, no deals would ever be made. Between the official meetings, negotiators are traveling to make sure their partners understand where the red lines are and where positions are flexible. As preparations go, the gloves are usually off behind the closed doors and agreements are forged, even if they’re as unspectacular as an agreement to agreeto continue the process through the following year.

I N T ER S E S S IO N S Due to the complexity of climate change negotiations usually two additional weeklong meetings are planned during the year: one in spring and one in fall. In the past couple of years delegates met, for example, in Bangkok, Panama and Tianjin (China). The purpose of these meetings is to come up with negotiations’ agenda and further work on negotiating texts. Fact: in 2011 at the Bangkok intersession, it took a whole week to come up with an agenda for that intersession.

WORK S H O P S Additionally, experts often meet to discuss the technical details and implications of decisions made by the COP. Workshops are often useful platforms for exchanging information amongst delegates because they are used for informal dialogue rather than negotiating.

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1st

AUTHOR'S PHOTO

place E S S AY C O N T E S T

More than a

Degree

Upon enrollment, encourage students to plant two trees. It’s a simple way to make up for the dramatic loss in green areas across the world and offer local communities ways to improve their economies with tree-related products. B y D an i e l S o l a F a g o r u s i

It’s universal across cul-

tures that education is viewed as an effective means of escaping poverty. The university is the place where information is distilled and knowledge is packaged for use in the different spheres of the economy. All over the world, universities are greatest and most important focal points for the young. People under 25 make up 43 percent of the world’s population, but the percentage reaches 60 percent in the less developed countries, like Nigeria, for example. These young people would be in charge of national and global affairs soon. Putting them in the driving seat of the process of greening the world agenda - by tree planting for example - is possibly a cheap and effective attempt at a sustained action linking economy and environment. Trees have served mankind since the earliest days of civilization. The gradual disappearance of trees and

32 | CLeantech | Q2 2013

forest areas today, however, has become a source of global concern. Indiscriminate felling of trees has economic causes at its foundation. It is ironic that in people’s attempt to find a solution to their economic challenges, they are in turn setting themselves up for a grander economic woe. Matriculation is the entry point of students in the university. Students are informed of what stands between them and the outside world; of possibilities and growth prospects. They’re given information on how to go about living in their new community. The day typically ends with photo sessions with students in matriculation gowns, posing with family members, friends, colleagues and university staff. THE SIMPLE IDEA I am proposing that in addition, each student is given two tree seedlings to be planted and they can choose to name the trees after themselves or any other person to preserve

The full text of the 3rd place essay and information about the 2013 Cleantech essay contest can be accessed at: cleantechpoland.com/contest

ESSAY WINNER

The author stands beneath a Mahogany family tree, known as neem tree, the subject of his essay

personal memories. If 2,000 students enroll at a university, it means 4,000 seedlings available for planting. Universities are usually located in rural communities or sub-urban environments with massive acreage of land. In some instances in Nigeria, there are existing rural communities in the universities, examples include Tunkere village in the Obafemi Awolowo University, Abadina within the University of Ibadan, and Biye in the Ahmadu Bello University. Universities, especially those with faculty of engineering and agriculture, often run projects with local communities. Where the land is not readily available, a village within a reasonable distance from the university may be invited to the tree planting exercise, thus bringing together the rural and students communities. The tree planting sites may be carefully mapped, with an entrance where a legend that details the tree planting exercise can be shared with visitors and for posterity. At the start of every

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“The neem tree can be used to generate raw material for the production of herbal tea, seed oil, soap and leaf capsules” Daniel Sola Fagorusi

semester, students can visit the trees to see changes brought about by growth and further renew their commitment to a healthy environment. It also serves as a good entry point to introduce further information on environment related issues to the students. THE TREE I propose that the tree planting program for students uses a Mahogany family tree, known as neem tree (azadiracta indica), called Dongoyaro locally in Nigeria, where it’s readily found. Drought resistant species, neem tree grows above 15-20 m in 3-4 years and produces evergreen leaves with strong-fragrance white flowers and fruits. Neem trees can reach 100-200 years of age. Because it is an evergreen and fast growing tree, neem is a favourite for reforestation and it can be propagated from its seeds or from its bare twigs. Neem is a multipurpose tree that starts bearing fruits after 3 to 5 years (the same length of an average university degree program) and is fully productive after 10 years. Under favourable conditions a tree can produce up to 30 kilograms of seeds per year and 350 kilograms of leaves. 34 | CLeantech | Q2 2013

The economic challenges in a nation like Nigeria makes the neem tree a viable choice to improve economics of local communities. The neem tree can be used to generate raw material for the production of herbal tea, seed oil, soap and leaf capsules. The azadi-

rachtin extract from the tree can also be used to produce insecticide, nematicide and fungicide products. Neem cake organic manure, a by-product obtained cold pressing of the neem tree fruits and kernels, and the solvent extraction process for neem oil cake,

The essay contest winner received a check for 5,000 PLN at the October 2012 DTZ business mixer; a representative of the Nigerian embassy, Minister Victor A. Adeleke, receved the prize on behalf of Daniel Fagorusi.

ESSAY WINNER

S E L E C T I O N C O M M I T T E E O RG A N I Z at i ons

SZYMON SZCZESNIAK

is a good fertilizer because it contains nitrogen, potassium, phosphorus, calcium and magnesium. In other words, the neem tree can provide villagers with various products from which to derive income. The neem tree is also suitable for

planting in areas suffering from wood shortages, it’s exceptional as a city tree, serving as a car shade, and it can grow in (and perhaps neutralize) acid soils. The neem tree also aids the fertilization of the soil. Shed leaves bring back a lot of nutrients to the soil and it is the nutrients that help to replenish the soil and bring back greenery which is what the people depend on for grazing their animals or planting other crops of annual crops. IT’S UNIVERSAL The MTAD idea can be adopted anywhere in the world. The World Environment Day that falls of June 5 every year can be used to compare how MTAD has been going on across the world, what the success stories are, and what lessons can be shared. The sure bet about MTAD is that the next president of Nigeria, three elections from now, would likely have partaken in this initiative and it would be easier for him to key into environmental conventions like the UNFCC. If replicated globally, it also stands to reason that the presidents of the leading economies of the world would have at a time planted trees in a community somewhere.

T H E RUL E S The selection committee was comprised of five professional leaders from prominent cleantech organizations. The committee chose the winners (p 73); runner up essay (p 74) Agata Stafiej-Bartosik, Sustainability Manager, PwC Jolanta Chodkowska, Chairman of the Board, PR2 Robert Dwiliński President, Ammono Peter Hogren CEO, Greenfield Wind Agnieszka Król CEO, Esperotia Each contestant's essay was evaluated based upon the following five criteria: 1. Simplicity and beauty: does the idea inspire the imagination? 2. The environmental benefit: does it promote sustainability? 3. The economics: how well does it do financially? Does it need a subsidy? 4. Originality: does this idea appear in a google search? Is it a novel idea? 5. Scalability: can this idea be applied anywhere? Is it location specific? The next contest will launch in April 2013. Please visit cleantechpoland.com/ contest for details. Information about this year's contest at: contest@cleantechpoland.com

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PHOTOPIN

36 | CLeantech |Q2 2013

SOLAR SECTION

HERE COMES THE SUN P38 P40 P42 P44 P45

Debt & equity Solar PV developers What's hot in solar EU solar markets China's dumping war on EU

P47 S O L A R D I R E C TO R Y

P56 Profile of Martifer P58 Lawyers on market pitfalls P61 Solar in Warsaw

Sometime soon, the Polish government could pass a renewable energy law highly favorable to solar PV. If so, a boom in the installation of solar PV may add to an already developed solar thermal sector. Poland could be a CEE hotspot. But delays in passing the law could chill the enthusiasm.

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s o l ar F I N A N C E

what DEBT

In California, homeowners quit buying panels, and instead bought solar savings. What financial models will emerge in Poland? By PARKER SNYDER

Debt for solar projects can

be obtained from commercial banks. According to Peter Richards, senior advisor to Cleantech Poland, who has arranged debt for solar projects in Bulgaria, banks assess three criteria. These criteria include the quality of the project sponsor, the terms of the EPC (engineering, procurement and construction) contract, and the production yields of the modules. “The EPC contractor should have a history of building PV plants because the construction schedule is time sensitive, as the bank loan is usually tied to a grid connection date. The reputation of the manufacturer of the solar panels factors into the bank's decision as well," Mr. Richards said. NEW MODELS? A financial model that emerged in northern California over the last few years is one possibility for giving solar rooftop installations momentum in Poland. The model is a form 38 | CLeantech |Q2 2013

of distributed power generation, where developers reduce the up-front cost and make modules affordable: rather than sell the solar panels, they sell "savings." In California, developers such as HelioPower and SolarMax assess the production potential and then pay the cost of installing the modules. The power is fed into the grid, and the subsidy is paid to the solar company. Rooftops become assets in a distributed power generation scheme, owned by a solar-power based utility. Such a financial model could proceed in Poland, since the most generous subsidies are for the small installations. By having utilities pay the capital cost, the risk profile is lower. This could stimulate development. “Warsaw doesn’t have that many big roofs, but it has a lot of smaller ones. If you could make a ‘plug & play’ solution, and you don’t have to engineer each roof, you could have an easy development opportunity," said Adam de Sola Pool, a renewable energy investor. Mr. de Sola Pool says that with the proposed tariff a five to

PHOTOPIN

model?

six year payback period can be expected, with a 12 percent return on investment within a 25 year horizon. DEBT IS COMING For larger projects, bank financing will cover the cost of construction. Here in Poland, Bartłomiej Pawlak, the CEO of BOŚ Eko-Profit, a unit of environment financing specialist BOŚ Bank, says the bank is closely monitoring the forthcoming renewable energy law. "We predict that after the new renewable energy act in Poland, a whole new market of investors, manufacturers, and service providers will enter the market, like they did a few years ago in Western Europe." "To give just one example, in the UK, just two years after the law was created to encourage the development of photovoltaics over 200,000 micro-installations were developed. It is very likely that these solutions can meet with as much interest in Poland," Mr. Pawlak adds.

SOLAR SECTION New models for bank financing may emerge to promote the development of solar PV

P V D E V E LO P M E N T

in the starting blocks

Reduced support for wind has caused some large developers to make bets on solar PV. Smaller, local developers have also begun to build portfolios and hone supplier relationships. By PARKER SNYDER

Take a drive through south-

ern Poland and you are sure to find rooftops with solar panels. Most of these harvest the sun’s energy to heat water, which can be used for space heating or to take a hot shower in mountain towns like Zakopane. There, customers are lured with promises of the National Fund of Environment Protection and Water Management (NFOSiGW) funding to help with the upfront costs. While solar thermal is common in some parts of Poland, soon solar PV could rival its thermal twin. BIG GUYS Martifer Renewables, a developer, plans to build a solar PV project pipeline in 2013 by calling on their solar experience in other CEE markets. Martifer was among several developers who have recognized that the profitability of their current pipeline, mostly wind, could be undermined if the new law was passed. “It’s our intention to start some greenfield development in quarter one of 2013. We are open to all of 40 | CLeantech |Q2 2013

Poland, but central and south Poland is our focus due to irradiation levels and our geographical proximity,” said Francisco Queirós, country manager for Martifer Solar in Slovakia and Czech Republic. Currently Martifer is performing some preliminary feasibility studies in terms of solar potential, locations and technical conditions.

“

We are open to all of Poland, but central and south Poland is our focus due to irradiation levels” Francisco Queirós

SMALL FRIES Large corporates are not the only ones developing solar projects. Smaller, Poland-based developers, like Czysta Energia PV, are assembling a network of suppliers. Sebastian Machnowski, owner of Czysta Energia PV, started the company in 2011, helped along by EU funding. Mr. Machnowski works with two German companies, Kirchner Solar Group and Sonnen Systeme, reputable developers with a solid project history that he hopes to leverage in the Polish market. Financing, for instance, could be easier to obtain if the project was designed by his German partners. “We are preparing roof installations for private investors. We’re also focused on projects up to one megawatt, because those types of systems will return the most profitability to investors,” Mr. Machnowski said. This is due to micro- and small installations receiving best feed-intariffs or the highest coefficients to calculate the value of green certificates. Although himself dependant

SOLAR SECTION

S OL A R P O T E N T I A L : I R R A D I AT I O N in P OL A N D

Gdańsk

Olsztyn Szczecin Bydgoszcz

Poznań

WARSZAWA

Łódź

Lublin

EUREOPEAN COMMISSION CLEANTECH POLAND RESEARCH

Wrocław

1100

Katowice Kraków

Rzeszów

1150 1200 1250 1300

( kWh/m2)

Although solar irradiation in Poland is rather moderate, compared to Spain and Italy, there is variation across the country. Overall, solar irradiation is greater in the south than in the north. The areas west of Gdańsk receive more average solar exposure than the areas in the northeast, around the Mazurian region. Compared to the rest of Europe, Poland is average.

on connecting projects to the grid, and receiving a feed in tariff for small installations, once these are secured, Mr. Machnowski will be selling energy security to customers. RISKY BUSINESS Both Mr. Queriós and Mr. Mach-

nowski are aware of the risks. In other CEE markets, subsidies were recalled or reduced after being signed into law. “Martifer Solar analyzes the risks we expose ourselves to and we all try to hedge against them. This analysis is usually a country risk analysis

rather than an analysis of the project itself,” Mr. Queriós said. Environmental impact assessments may not be needed for solar, but other hurdles could wait. Wind developers, for instance, have to contend with project lead times that can exceed 48 months.

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TRENDS

WHAT'S HOT IN SOLAR Aided by Chinese production, solar energy is more competetive than it's ever been. Here are five trends that could aid the development of the nascent Polish PV market.

It's easy to say that the PV

market in Poland is in for a boom. According to the Global Market Outlook for PV, a report published in May 2012 by the European Photovoltaic Industry Association, Poland is one of the markets to keep an eye on. "Poland is the largest electricity market in Europe that has not yet started to develop PV. Some MW projects benefiting from ad-hoc development plans have been announced, but they are yet to be completed," the report says.

FITs Feed-in-tariffs (FITs) are arguably the best form of support to aid in renewable energy generation. Schemes tied to green certificates, now at an all-time low in Poland, are volatile. At the moment, the draft renewables law plans for FITs of PLN 1,100-1,300 (â&#x201A;Ź261-309) per MW for rooftop and ground PV projects 10 to 100 kW in capacity. Rooftop projects will get higher FITs.

42 | CLeantech |Q2 2013

It's also often said that the arrival of the new law on renewables will institute a boom on PV across the board. Well, not really. This is because Poland is planning to avoid indiscriminate, and thus potentially destabilizing, support for renewable energy, including PV. Size and type of installations will matter, a lot. Before anyone jumps on the bandwagon of PV development, take a look at five aspects of the market that should translate into most interesting opportunities.

PHOTOPIN

B y W O J C I E C H K Osc

Holographic foil US company Solar Bankers and Germany's Apollon have recently developed a prototype solar output concentrating module using holographic foil. "As opposed to using mirrors or lenses, the concentrated technology employs a holographic optic, printed on the cover glass. The distance between the optic and silicon solar cell is said to only be a few millimeters, while the amount of silicon in the module is said to equal less than 3%," PV Magazine reported in late January 2013. Solar Bankers and Appollon are working on the prototype to yield efficiency of 28-38 percent. The production of the new type of concentrating module is set to kick off in 2013, either in US or Germany. According to Solar Bankers and Apollon, the module's production costs will be below production costs of Chinese manufacturers.

Rooftop solar FITs for rooftop PV installations are higher than those for ground installations. The same applies to the other support type, a correction coefficient, or factor by which the value of a green certificate is multiplied. Poland plans that the coefficients for rooftop PV will be highest in the entire renewable energy sector. The coefficient for rooftop PV installations of 200 kW - 1 MW will be 2.85 in the first year, gradually reduced by 5.5 percent annually. The coefficient for ground PV will be 2.75 in the first year. Large PV, 1-10 MW, will get the coefficient of 2.45 (rooftop and ground). Coefficients for other renewables don't exceed 2. There are approximately 6 million square meters of rooftops in Poland in warehouse/logistics real estate alone.

Solar reflectors boost solar output

GOLDENSUN

Southern sunny countries are by no means the only possible locations for the development of solar power. Neither are moderate sun irradiation levels a given that you can't improve. It makes a lot of sense to boost sun power, especially in Central European latitudes. Slovak company GoldenSun has developed a system of computer-controlled mirrors that deflect the sunrays to PV panels so that they receive more solar radiation than in standard operation. Solar output boosting with mirrors may help generate up to 20-30 percent more energy annually, thus boosting a PV plant's revenue by 10 percent, according to GoldenSun.

Current technologies make producing solar power sensible in sunny areas of the world

BIPV Building Integrated Photovoltaics (BIPV) is an innovative method of capturing the sun's energy through application of PV in buildings. The case for BIPV is strong because costs of implementing the technology are reduced by the costs of otherwise using traditional building elements. PV modules could replace bricks on facades, while PV shingles could replace traditional clay or metal ones on rooftops. The next step for BIPV is see-through glass that captures light from inside and outside the building and is able to convert it into power. EnergyGlass' Optically Clear Building Integrated Photovoltaic Window System, which from the outside looks like tinted glass. The system could yield 10-20 watts/sq. meter per hour for 10-12 hours during the day and 30-40 watts at peak times.

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SOLAR SECTION

s o l ar S U B S I D I E S

BURNED by the sun

Poland is willing to learn lessons from other EU markets, where generous subsidies are now being scaled back to relieve consumers from having to stomach increasing energy bills. B y w o jciech k o sc

The sun keeps shining on Europe. Only the sunshine isn’t bringing revenue, at least in countries like Germany, Spain or Czech Republic. There, ill-advised support systems for energy generated from photovoltaic (PV) installations resulted in PV being the most favored type of renewable energy investment. Before long, PV projects had little to do with countries’ efforts to build sustainable alternatives to the burning of fossil fuels. A wildcat run to get at the generous subsidies resulted instead, with end users paying expensive bills. PRICES UP... “The most important negative aspect of the solar boom is significantly increasing price of electricity for end customers - by 2,4 percent in 2012 - despite the falling prices of electricity on the world markets,” said Tomáš Gebauer from the press office of the Czech ministry of industry and trade. The Czechs’ fundamental error was that the generous feed in tariffs system didn’t establish any limits or controls on the amount of installations or a cap on installed capacity. “Because tariffs were very generous, prices of equipment were falling very fast and financing was easily available, a bubble was created. The 44 | CLeantech |Q2 2013

“

The support for all new renewable energy source installations will be terminated from 2014”

year 2011 saw more than 1600 MW of PV installed, the largest per capita capacity worldwide,” said Francisco Queirós, project manager for Martifer Solar in Slovakia and Czech Republic. The over-development of PV created technical problems in grid management and a huge cost of PV subsidies to the state. ... but COSTS DOWN In Germany, according to Macquarie, an investment bank, the situation is similar. The report lists renewable energy subsidies as a key driver for the steady climb in energy prices. However, Macquarie says, the kind of reaction that took place in the Czech Republic - first cutting the subsidies in half in 2011 and now planning to axe them altogether may not work.

“The ever-increasing prices for domestic and commercial customers as well as rapid solar cost declines have brought on the advent of grid parity for German roofs. Thus, solar installations could continue at a torrid pace,” Macquarie reports says. In the Czech Republic they won’t continue, says the ministry’s press officer. “The support for all new renewable energy sources installations will be terminated from 2014.” Still, the country is going to continue to face the legacy of the poorly designed support system. “The Czech Republic will still pay support to existing RES installations for the next 20-30 years,” said Mr. Gebauer. AT HOME In Poland, it seems, the government noticed the problems elsewhere, and has proposed correction coefficients (factors by which green certificates' value is multiplied). These factors vary depending on the type and size of installations. For small and micro installations, FITs will be introduced. For PV, the maximum feed-intariff value is PLN 1,300 (€308) per 1MW and only applies to the smallest installations on rooftops. By comparison, the Czech feed-intariff, applied across the board, exceeded €400 per 1MW before it took the first slash in 2011.Co

E U P OL I C Y

NO OBVIOUS

PHOTOPIN

ANTI-DUMPING STRATEGY In the short term yes, PV will be more costly and EU citizens will pay the bill, but the technological advantage from strong R&D support could help lower production costs in the long run. By TOBIASZ ADAMCZEWSKI

Globally, China is the empire of all things cheap, including photovoltaic (PV) cells, but this may soon change for the EU because of anti-dumping tariffs. Beijing has already been penalized for dumping under-priced crystalline silicon PV cells on the international markets. A 24 to 36 percent tariff was issued by the US Commerce Department in October 2012. Now, European manufacturers are looking for a similar decision to be made by the European Commission, the EU’s executive body, by early June this year. Doubts exist about the tariff ’s effectiveness, however. DOES IT WORK? The Commission will have to assess whether it is worth saving whatever is left of the EU solar panel manufacturers against possible negative influence on the overall solar market. While the solar supply chain is still waiting for the RES law to be finalized and adopted, the anti-dumping measures could prove to be a barrier for this technology in Poland. “Anti-dumping measures would have a negative impact on our business because our supplier would be affected and the prices of our products would go up,” said Marek Segeth of Solar-Bau, a developer. “Although we use a French supplier, they ex-

ported their manufacturing to China,” he added. Although the Commission was reluctant to address the issue, Cleantech confirmed that EU companies producing solar cells in China would also have to pay the tariff that comes from the anti-dumping measures they are proposing. Patryk Gronowski, a developer from the German based Chroscinski Solartechnik isn’t too worried. “This wouldn’t have a big impact on our operations in Poland, because we offer both Asian and European products. Even though we base our business on Asian products, we will have no problem switching to EUproduced modules if need be,” Mr. Gronowski said. Although he added that it would make sense to calibrate support systems in a way where installations based on EU parts would get a better subsidy. GOT A POINT? The French government seems to be in agreement with Mr. Gronowski. In a press release from January 7th, 2013, Delphine Batho, the French minister of ecology, sustainable development and energy announced that installations of up to 100 kW will receive an additional 10 percent of support if comprised of EU built components. But this means that the burden to cover the extra

“

Anti-dumping measures would have a negative impact on our business”

bill will fall on consumers. The arguments for and against the anti-dumping tariff have merit. On the one hand, according to EUProSun, an EU PV organization, Chinese dumping has caused at least thirty European companies to become insolvent since 2010. On the other hand, cheap sources of renewable energy help to reduce emissions, while increasing energy independence. The argument to impose a border tax seems valid. In the short term yes, PV will be more costly and citizens will pay the bill, but in effect the technological advantage from strong R&D support could help lower production costs in the long run. As long as there is a strong climate action policy in place, and more expensive solar panels will be installed anyway, it seems smarter to help EU taxpayers keep their jobs.

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SOLAR SECTION

The argument to impose anti-dumping tariffs on the Chinese has two sides

Since the construction law stipulates solar thermal collectors do not require a building permit, it is likely that the General Building Inspectorate will take a similar position with PV: that solar PV panels on rooftops won’t need a building permit.

The installation of facilities taller than 3 metres on top of buildings is an exception that requires filing a notification

Maciej KruS, SSW

picture: SSW

A D V E R T OR I AL

SSW: solar rooftop PV projects will not require a building permit

olar photovoltaic (PV) projects, while relatively simple to carry out, can stall or fail altogether if investors don’t take care about two seemingly straightforward legal issues. First, the regulations that specify whether a project needs an environmental impact assessment don't really say whether a PV project needs one or not. According to Polish law, projects need to obtain an environmental decision if their impact on the environment is significant or at least potentially significant. A Polish government decree from 2010 that lists such projects doesn’t refer to PV installations. However, the General Directorate of Environmental Protection tends to interpret existing regulations on environmental impact assessment in a way that installation of a photovoltaic park potentially may have a significant impact on the environment, thus requiring an environmental decision. The directorate points to the fact that PV installations may require similar land transformation as in the case of other types of structures listed in the decree, for example industrial or warehousing structures covering at least 0.5 hectare or 1 hectare (depend46 | CLeantech | Q2 2013

ing on the extent of environmental protection methods in a given area). The second issue concerns siting and building permits. Investors need to be aware that some types of PV installations don’t require notification with building authorities, while others require going through the full construction permit procedures. The construction law stipulates that the installation of rooftop solar thermal collectors do not require a building permit. So it is likely that the General Inspector of Building Control will take a similar position with PV that like solar thermal collectors - solar PV panels on rooftops won’t need a building permit. The installation of facilities taller than 3 metres on top of buildings,

however, is an exception that requires filing a notification with a relevant authority. Notification must be filed prior to the scheduled start of construction works. Construction may start as long as the relevant authority (such as the local construction inspectorate) has not decided against it within 30 days from the filing date. The investor has 2 years to start construction works, following the start date specified in the notification. One should also remember that according to construction law, projects carried out on the basis of notification only, are subject to cross-check for compliance with the local area development plan. If not compliant, such projects will be stopped.

In the case of installation of stand-alone photovoltaic systems, a building permit is required. In such a case, one should check if the proposed investment project is in line with local area development plan. Piotr Spaczyński, Partner, Attorney at law, SSW Law Firm Maciej Kruś, Senior Associate, Attorney at law, SSW Law Firm

PPLIERS, DISTR U S , IBU RS E TO R U RS T C ,I FA

RD PARTIES, REAL ES S, 3 T ER AT LL E TA A NS

D SOLAR THER N A MA PV LM R A L AN SO U

SOLAR DIRECTORY

solar DIRECTORY

S, NT GE

PO L IS PRODUCER

DISTRIBUTOR

DEVELOPER

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solar DIRECTORY

LEGEND

PRODUCER

COMPANY A+ Tech

DISTRIBUTOR

DETAILS 15 years experience in CEE Products include: ET Solar, JA Solar, LINUO Mr. Paweł Szadrowski, solar@aplustech.pl ul. Warzelnica 27A, 03-255 Warsaw, Poland tel. (+48) 604 122 666, (+48) 22 811 50 80

ABB Mr. Sławomir Kwiatosinski, www.abb.pl ul. Placydowska 27, 95-070, Aleksandrów Łódzki, Poland tel. (+48) 42 240 01 54

Agnes Elektromax office@agnes-elektromax.pl ul. Zygmunta Krasińskiego 25 m.8, 01-580 Warsaw, Poland tel. (+48) 606 601 314, (+48) 512 256 314

Alumero Metal Components sp. z o.o.

9 years experience in CEE Supplier of mounting system for roofs and open area Mr. Grzegorz Łupusiński, alumero@alumero.pl ul. Kluczborska 29, 41-508 Chorzów, Poland tel. (+48) 323 4 617 60, (+49) 7333 950 98 27

Aton-solar Mr. Boris Lechler, b.lechler@aton-solar.de Gottlieb-Daimler Str. 15, 89150 Laichingen, Germany tel.(+49) 173 469 02 67, (+41) 52 633 12 99 tel. (+48) 604 122 666

48 | CLeantech | Q2 2013

DEVELOPER

TYPE

Contact: Tobiasz Adamczewski, (+48) 694 478 733, Tobiasz@cleantechpoland.com

Bosch Solar Energy

DETAILS

TYPE

The Bosch Group’s solar division, headquartered in Arnstadt, Germany, is a fully integrated European manufacturer; supplier of monocrystalline solar PV modules and cells. From small-scale to large-scale projects, Solar Energy offers high-quality PV. PRODUCTS: c-Si M 60 (Germany, France); c-Si M 48 (Germany, France); c-Si P 60 (France) Mr. Tobias Arnold, info.se@bosch.com Robert-Bosch-Straße 1 tel: (+49) 3628 6644 0, www.bosch-solarenergy.com

Canadian Solar Mr. Daniel Heck, daniel.heck@canadiansolar.com Landsberger Strasse 94, 80339 Munich, Germany tel. (+49) 89 51996890, (+48) 22 465 14 87

Chroscinski Solartechnik

Founded in 2004; Hundreds of installations in Germany and France; design, engineering and construction; component distribution. Exclusive representatives of Solar-Kabel, Varista and SolteQ in Poland; we distribute: ReneSola, Hanwha SolarOne, Heckert Solar, Algatec Solar, Bosch modules; Danfoss, PowerOne, Kaco, SMA Solar Technology inverters. Mr. Piotr Soczyński, Project Koordinator, ps@ach-solar.de Sankt-Georg str. 2, 87463 Dietmannsried tel. (+48) 503 664 773, (+49) 8374 589 56 40, (+49) 89 540 30 34 65

Czysta Energia PV Mr. Sebastian Machnowski, biuro@czystaenergiapv.pl, czystaenergiapv@gmail.com ul. Puławska 10, lok. 59, 02-566 Warsaw, Poland tel. (+48) 606 295 726, (+48) 606 295 723, (+48) 22 468 00 74, (+49) 89 - 5199689-11

Donauer Solartechnik Vertriebs

SERVICES: Wholesaler of modules, inverters and mounting systems; on and off grid systems, e-mobility, solar tracking systems; self consumption of solar power. We are interested in creating alliances with installers in Poland. PRODUCTS: SMA Power One Stecal BOSCH, LG, CNPV; Intersol mounting system; Red Line Fresh - pricing upon request Ms. Martina Pouzarova, mende@donauer.eu, info@donauer.eu Zeppelinstrasse 10, 82205 Gilching, Germany tel. (+49) 1805 77 250

EasySolar Mr. Marcin Dolata, marcin.dolata@easysolar.pl ul. Sadowa 32, 61- 657 Poznań, Poland tel. (+48) 61 827 09 99, (+49) 89 442 3859 99

Eco 3 Energy Mr. Kristián Szabó, info@eco3energy.sk Dvojkrížná 49, 821 06 Bratislava, Slovakia tel. (+421) 904 195 232, (+42) 3 265 3829

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SOLAR DIRECTORY

COMPANY

DETAILS

EcoVoltaika Mr. Mark Popovich, info@ecovoltaika.pl ul. Sienkiewicza 6, 29-100 Włoszczowa, Poland tel. (+48) 696 985 691, (+48) 12 272 31 24

Eco-Convert Mr. Szymon Hanusiak, szymonviper@o2.pl ul. Zakopiańska 10, 134-240 Jordanów, Poland tel. (+48) 889 659 654, (+41) 43 299 68 10

EcoJura Ms. Justyna Bała, biuro@ecojura.pl ul. 1 Maja 4, 42-202 Częstochowa, Poland tel. (+48) 34 374 03 73, (+48) 32 265 33 28

Evertec Mr. Dariusz Ziemski, d.ziemski@evertec.pl ul. Leszno 59, 06-300 Przasnysz, Poland tel. (+48) 29 752 58 22, (+49) 8105 77 25-100

FRONIUS International Ms. Verena Huber, Huber.Verena@fronius.com Froniusplatz 1, 4600 Wels, Austria tel. (+43) 7242 241 4911, ( +49) 30 81879-99

Georyt Solar Mr. Paweł Piątek , pawel.piatek@georyt.pl ul. Mroźna 8, 33-102 Tarnów, Poland tel. (+48) 14 632 08 23, (+49) 3494 6699-1000

Greentechnik Mr. Michał Spuwa, info@greentechnik.pl ul. Wita Stwosza 32/1, 02 - 661 Warsaw, Poland tel. (+48) 22 843 81 19, (+ 48) 746 614 111

50 | CLeantech | Q2 2013

TYPE

Contact: Tobiasz Adamczewski, (+48) 694 478 733, Tobiasz@cleantechpoland.com

DETAILS

TYPE

Hanwha SolarOne Ms. Agnes Gergely , info@hanwha-solarone.com Mergenthalerallee 79-81, 65760 Eschborn, Germany tel. (+49) 89 2175 667 328

Hymon Energy Mr. Mariusz Stawarz, biuro@hymon.pl ul. Dojazd 16A, 33-100 Tarnów, Poland tel. (+48) 502 338 960

IH Solar

We sell, design and build photovoltaic installations; PRODUCTS: Solar World Germany, QIXIN, ET Solar Mr. Zdzisław Persinski, per.solar@gmail.com ul. Hetmańska 2a/12, 04-305 Warszawa, Poland tel. (+48) 669 525 633

Jetion Solar Europe

Fully integrated PV manufacturer with capacity of 700MW per year supply of solar modules' 5 days delivery time to Poland from warehouse in Ostrau, Germany PRODUCTS: Modules (Polycrystaline) 240, (Monocrystaline) 255 Mr. Bartosz Kleniuk, poland@jetionsolar.eu Industriering 10, 9491 Ruggell, Liechtenstein tel. (+48) 22 397 0683

KRD Global Group

Solar PV Investments, EPC, PV Consulting; PRODUCTS: Turn-key plants over 1MW; installed to date: 16MW, pricing: 1€/W; in POLAND: PV on roof (40kW-1MW): Installed CEE: 1MW, Pricing: €1.2/W; POLAND: BIPV: 500kW. PV installed globally to date: 17 MW; installed in Poland to date: 10kW; Planned capacity Poland: 100 MW Mr. Oscar Charro, info@krdglobalgroup.com ul. Szulborska 3/5/111, 01-108 Warsaw, Poland tel. (+48) 797 278 537, (+48) 14 632 08 23

MP Tec Solar Poland

With our products and system solutions, we promote a sustainable supply of energy across our target markets. We are specialized in the development and manufacture of application-oriented, premium solar power, solar heat, and mounting systems. As a partner for specialist dealers, tradespeople, planners, and investors, we implement turnkey solar farms all the way from planning to completion. Products include: solar carport eco/ solar carport comfort, tracker "skytrap plus" & "skytrap light", mounting system "Quick-Line", vacuum tube collector "vrk 12 premium"; all produced in Germany. Mr. Łukasz Fiedur, l.fiedur@mp-tec.pl ul. Abrahama 18, 81-825 Warsaw, Poland tel. (+48) 607 998 121, (+49) 30 27 907 20-69

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SOLAR DIRECTORY

COMPANY

DETAILS

M&W Mr. Wojciech Wichary, wojciech.wichary@wicharytechnic.pl ul. Sobieski 105, 43-300 Bielsko-Biala, Poland tel. (+48) 33 498 25 25

PV Partners Mr. Henning Rieke, hr@pv-partners.de Engeldamm 20, 10179 Berlin, Germany tel. (+49) 30 27 907 200

REC Solar post@recgroup.com Leopoldstraße 175, 80804 München, Germany tel. (+49) 89 442 3859 0, (+48) 32 287 66 84

RenVolt

Individual power production in sources using photovoltaics or wind micro turbines; Vast possible applications, easy to implement; PRODUCTS: solar panels, 0.4 MW (China) inverters, 0.4 MW (Germany) Mr. Artur Serkowski , info@renvolt.com ul. Jagiellońska 94C, 85-027 Bydgoszcz, Poland tel. (+48) 523 484 057, (+420) 235 097 440

RenoSolar Mr. Wolfgang Huttl, wh@renosolar.de Lindeweg 1, 82054 Sauerlach, Germany tel. (+49) 8104 90850 16, (+41) 32 346 58 29

Remor Mr. Mariusz Potocki, m.potocki@solarfutureenergy.eu ul.Smoleńska 154, 85-871 Bydgoszcz, Poland tel. (+48) 52 346 44 47, (+49) 6196 5016 90

Revolution 6 Ms. Khrystyna Johnson, khrystyna.johnson@revolution6.com ul. Kochanowskiego 30/25, 33-100 Tarnów, Poland tel. (+48) 14 688 91 41

52 | CLeantech | Q2 2013

TYPE

Contact: Tobiasz Adamczewski, (+48) 694 478 733, Tobiasz@cleantechpoland.com

Selfa GE

Senersun

DETAILS

TYPE

We are a Polish PV modules producer (since 2012) and turn-key PV systems provider, having a solid electrical engineering background: since the 1930's SELFA has been the biggest Polish producer of electric heating elements. PRODUCTS: polycrystalline & monocrystalline modules, complete PV Systems solutions; a distributor of PV inverters. Mr. Krzysztof Zamożny, k.zamozny@selfa-pv.com ul. Bieszczadzka 14, 71-042 Szczecin, Poland tel. (+48) 918 146 359 Senersun manufactures the most advanced QC program on the market, consisting of 100% on-site testing, a continual audit of our factory by a third party, and a validation of each product by an independent laboratory before shipment. PRODUCTS: Solar panels (mono and Poly) 95 Wp to 305 Wp Senersun, info@senersun.com Cours du XXX Juillet, 33064 Bordeaux Cedex, France tel. (+33) 0 556 64 11 432

Sharp Ms. Marta Zaj, marta.zaj@sharp.eu ul. Poleczki 33 a2, 02-822 Warsaw, Poland tel. (+48) 22 545 81 90, (+49) 7531 996 77-480

Skorupa Energy Technic Mr. Joachim Skorupa, firma.skorupa@wp.pl ul. Powstańców Śl. 4a, 46-380 Dobrodzień, Poland tel. (+48) 34 353 62 43

SKORUT Systemy Solarne

SKORUT Systemy Solarne has the capacity for both small and large investments, including an 8,000 sqm project, one of the biggest in Europe. SOLAR PV: modules TWIN (235 W/pc.) Installed globally: 12 kW; pricing est. €570 (unit); THERMAL: Solarpol MAX 1 (1.74 kW/pc.) installed globally: over 30,000 sqm, pricing est. €480 (unit) Mr. Grzegorz Głąb, office@skorut-solar.pl ul. Wybickiego 71, 32-400 Myślenice, Poland tel. (+48) 12 272 20 25, (+48) 12 626 78 81

Solar Development

Solar Development is a broker of PV productions lines; Meyer Burger Group, exclusive distributor of inverter ZEVERSOLAR , Sung row; partner with PV module producers: Lightway Solar, Canadian Solar, UPSolar, Kaco, TBEL, Energyglass; EPC contractor; distributor for PV industry, inverters, PV Modules, BIPV Modules. Ms. Joanna Sonia Katolik, jsk@solar-development.pl ul. Fabryczna 14d/22, 53-609 Wrocław, Poland tel. (+48) 531 451 050, (+48) 95 765 40 66

Solar-Bau

Solar Bau is an EPC contractor and components supplier. PRODUCTS: Senersun (France), 190 W to 300 W, installed: greater than 1000 MW; SMA inverters (Germany), 1200 W to 15000 W, installed: 1000 MW; LUXEN modules (China), 230 W to 300 W, installed: more than 100 MW; pricing est. (€150 k install); planned for Poland: 50-100 MW Mr. Marek Segeth, contact@solar-bau.biz Elisabeth Straße 24, 2826 Görlitz, Germany tel. (+48) 887 801 887, (+49) 8104 90 850 29

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SOLAR DIRECTORY

COMPANY

DETAILS

Solar-Energy Mr. Zbigniew Kulik, biuro@solar-energy.pl ul. Stawki 2, 00-193 Warsaw, Poland tel. (+48) 22 487 51 78

Solar - Future Energy Mr. Mariusz Potocki, m.potocki@solarfutureenergy.eu ul.Smoleńska 154, 85-871 Bydgoszcz, Poland tel. (+48) 52 346 44 47, (+49) 6196 5016 90

Soldar sc Ms. Marian Lemański, biuro@soldar.pl Wróblew 33/10, 95-035 Ozorków, Poland tel. (+48) 882 831 100

SMA Solar

German firm SMA Solar Technology AG is world leader in PV inverters and monitoring that fit a range of PV modules. They can be used to connect to the distribution network or in a stand-alone application; experience in Poland, Czech Republic, Slovakia, Bulgaria, Romania and Hungary; a team for support, service, marketing, and consulting. Mr. Lubomir Slauka, Poland@SMA-Solar.com Radlicka 740/113d, 15800 Prague, Czech Republic tel. (+42) 0 235 010 400

TBK Ecoenergy

TBK Ecoenergy sells solar vacuum collectors, water storage tanks, PV, armature and fittings for heating systems. PRODUCTS: XSSP200M36 (200), pricing est. €150 (China); TBK 30 €1240 (Poland); Sunstar HP 65/30 €1880 (Germany) Mr. Jacek Kociński, info@tbkecoenergy.pl Wałowa 41, 43-100 Tychy, Poland tel. (+48) 32 322 10 45

Trina Solar

Producer of high quality mono- and polycrystalline modules as well as PV solutions. Looking for reliable long term strategic partnerships in the distribution and project business in CEE and Poland; PV Modules: 2.4 GW (China) Mr. Florian Ferber, europe@trinasolar.com Einsteinring 26, 85609 Aschheim, Germany tel. (+49) 89 122 84 92 65, (+48) 91 81 46 354

Vetro Polska

PV modules producer (Poland & Italy); installed globally: 1 MW; modules are built upon 36, 60 & 72 multi-silicone cells Mr. Jan Kalabinski, vetro@vetropolska.eu ul. Wiosenna 47, 41-253 Czeladź, Poland tel. (+48) 322 650 010, (+48) 52 362 93 20

54 | CLeantech | Q2 2013

TYPE

Contact: Tobiasz Adamczewski, (+48) 694 478 733, Tobiasz@cleantechpoland.com

RESULTS

solar SURVEY

P A B LO C AS T E LLA N OS C O N SULT A N T

According to our survey, regarding the delay, interviewees share a positive view mostly betting for a RES law in Q2 2013. However, the lack of clear policy regarding grid connection, financial support and legal issues are viewed as the main barriers for market development. There is a large consensus on the expected electricity price falling in the 200 to 250 PLN/MW range, and on the green certificates price being valued at over 250 PLN/ MW. Stakeholders' view on what will be the installed capacity by late 2015 seems to be less clear, with best estimate dropping in the 1,000-2,000 nominal MW range. One thing is clear: the views and factors on the solar powered future of Poland may be overly optimistic, given the delays. The parties seem to be waiting for the government to give the "go" signal to kick-off what could become one of the most interesting PV markets worldwide.

What are the top three challenges in the SOLAR PV business in Poland? 32% 27% 17%

17% 0

N GR N I EC D TI O

N SU LO PP W OR T LE ISSU GAL ES EN P E VI RO RM I T NM TI E N N TA G T XA TI O N LO GI ST IC S TRA N SP OR T CUL BARR TURAL IE RS

How many nominal MW of Solar PV do you expect to be installed in Poland by end of 2015? 29%

21%

LESS THAN 1000

21%

1000 2000

2000 3000

What electricity price do you expect through your investment period? (PLN per MWh)

29%

46%

MORE THAN 3000

150 200

250 300

> 300

What price per green certificate do you expect through your investment period?

47%

Q2 2013

200 250

15%

PLN

When do you expect the new RES law in Poland to be passed?

Q1 2013

23%

15%

SOLAR DIRECTORY

a n a ly s t ' s V I E W

18%

Q3 2013

Q4 2013

Q1 2014 -->

14% < 200

36%

220 250

250 280

14% 200 220

PLN

SOURCE: The survey was conducted in quarter one 2013 by Cleantech Poland.

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C OM P ANY P RO F I L E

MARTIFER SOLAR

Martifer, whose global headquarters are in Portugal, has a history as a fabricator of sheet metal products. Until 2004, when the company entered renewable energy. By hunter diamond

MARTIFER

Martifer's solar business in CEE is run by Francisco Queirós, the country manager in Slovakia and Czech Republic. According to Mr. Queirós, Poland is a very good prospective market, a country he characterizes as one with "low country risk". "The economy is growing at the highest rate in Europe. Foreign investment is welcome. The fiscal and regulatory

PROCEED WITH CAUTION

there is an opportunity in the EPC (engineering, procurement and construction) business in Poland, they are proceeding conservatively, assessing the market as it’s risk profile changes. "We are performing preliminary feasibility studies. No decisions have been made so far concerning starting projects in full development," Mr. Queirós adds. Martifer's solar division functions as an EPC contractor, meaning they follow the demand side of the equation. The company does not by itself act as an investor, although they are able to arrange financing for certain projects.

Although Martifer Solar believes

MARTIFER

HERE IN THE CEE

environments are good and stable. From the point of view of country risk, Poland is currently a very attractive for foreign investment," Mr. Queirós adds. Business model risk, however, remains high. Principal among Mr. Queirós' concerns is the difficulty of forecasting long term green certificate prices. "Currently it is not clear what direction PV support may have," he says. Futhermore, Mr. Queirós adds, it’s difficult to determine "the impact of all of these new renewable energy producers entering the market."

MARTIFER

Since solar photovoltaic (PV) is an emerging market in Poland, a number of foreign developers are positioning in-country teams to develop solar PV pipelines. The global reach of companies like Martifer Solar may help to jumpstart a market that as of the start of quarter one in 2013 did not yet exist.

Martifer Solar, with some 400 employees in 20 countries entered the Polish market in 2012 to leverage their global supply chain

56 | CLeantech | Q2 2013

MARTIFER

C O M PA N Y PROFILE

Principal among Martifer Solar's concerns in Poland is the difficulty of forecasting long term green certificate prices

Top marks: Martifer Solar installed both the world's highest solar PV instllation and the largest in north Africa

GLOBAL REACH Worldwide, the company has been involved in the installation of 200 MW of solar energy. The Martifer Solar portfolio includes several large utility scale projects in Africa (7.5 MW in Cape Verde) and large rooftop projects in continental Europe (5.3 MW in Borox, Spain). Martifer Solar positions itself as a turn-key solutions provider, meaning, they design it, build it and maintain it. The company's 2011 revenue totaled nearly â&#x201A;Ź300 million, on EBITDA of about â&#x201A;Ź20 million. Martifer's solar products include a range of "smart" PV panels, including installations on top of car parts, and tracking devices that allow panels to follow the path of the sun. BIGGER BUT BETTER? If the solar market in Poland takes off, large international EPC contractors like Martifer Solar will be best positioned to meet the demands of developers.

They can be competitive on price, as their volume allows them to purchase at scale. Supply chain integration as well allows them to deliver across a range of products. There are however challenges for a company like Martifer Solar. One challenge is their size and operating overhead for a company with 400 people in 20 countries. Surviving in a nascent solar market may favor smaller, more nimble companies. Polandâ&#x20AC;&#x2122;s developers, trying to save a buck, may prefer to buy from one company and have another build. Or they will simply choose local suppliers and developers, or skip big ones altogether. Poland's renewable energy markets are less mature than say Germany, so it might take several years, as it did for wind, before the solar industry professionalizes. By then solar, as elsewhere in the CEE, may have boomed and busted. Today, the prospects of this emerging market are attractive, but the opportunity may last 18-24 months.

MILE MARKERS

2009 Highest PV installation in the world: Madrid, Spain

2010

Africa's largest PV installation: 7.5 MW, Cape Verde

2011

Largest rooftop installation: 5.3 MW Borox, Spain

2012

Biggest PV Plant 25 MW Gujarat, India

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LEGAL ISSUES

LAWYERS, SPEAK

The future of renewables hangs on the new law, so Cleantech surveyed five lawyers for their opinions on the topics and tone of the forthcoming renewable energy law. C O M P I L E D B Y W O J C I E C H K O S C , pho t og r aphy s z ymo n s z c z es n iak , ssw , kl ga t es , sala n s

Since so much depends on

the forthcoming renewable energy law, Cleantech asked five prominent Warsaw lawyers to answer two important questions. QUESTION 1: Is there a risk that the generous support planned for solar PV in Poland will distort the market in the long run, as it did in the Czech Republic or Germany? QUESTION 2: If the renewable energy law isn’t passed for another 12 months, how will the delay affect the renewable energy sector?

Dominik Strzałkowski SSW Q1 @MarketDistortions: Even though these planned economical incentives for PV development are very generous, I don’t envisage that it will 58 | CLeantech | Q2 2013

influence the energy market the way we observed in Czech Republic or Germany. In other words, I believe in a boom for PV installations in Poland but the extent of these activities should not result in such a significant percentage of PV installations in the green energy mix that could influence prices to end users. The new planned Polish system is different than in the Czech Republic or Germany. It’s true that these new commercial PVs will receive more green certificates than other technologies, but they’re still going to function in the general green certificates system and will compete with other renewables. Secondly, PV will meet the same problems with interconnection to the grid as other renewables, therefore development of big, commercial PV projects may be locally frozen. Q2 @LegislativeDelays: I am not optimistic. I presume that the structure of the renewables’ market may transform with consolidation. Instead of having a diversified market of small and medium projects, which is economically reasonable, it seems that the market will be divided between big energy producers interested in renewables’ development mostly to gain green certificates for the purpose of their redemption, but only to fulfill own obligations. Other developers will probably either freeze their projects or decrease the speed of their development (if they have the financial means to cease operation) or sell it to the bigger players.

Maciej Wesołowski DLA Piper wiater Q1 @MarketDistortions: The risk is not high. The Czech state support system was based on some incorrect assumptions that led to a solar boom in 2010-11 and triggered fears of a dramatic rise in electricity prices. Firstly, the Czech state implemented a generous fixed feed-in tariff system, awarded to all PV installations. Secondly, due to a sharp decrease in the cost of solar panels, Czechs greatly overestimated the time needed for making a return on PV investments and guaranteed that the initial feed-in tariff would apply for 20 years. As a result, the solar business became very lucrative and expensive for end users who paid the final bill for subsidizing solar energy. Furthermore, the system did not include price controls. The Polish green certificates scheme proposed in the draft law on renewables

SOLAR SECTION

“The structure of the renewables’ market may transform as we will observe progresive consolidation, instead of having a diversified market of small and medium projects” Dominik Strzałkowski, DLA Piper Wiater

mitigates this risk as market demand for certificates acts as a ceiling for public support for renewables. The demand is controlled by the ministry of economy that indicates the obligatory level of purchasing the certificates and may - if needed - adjust it. On the other hand, the feed-in tariff seems to be a reasonable way of supporting distributed generation in small renewable installations.

Karol Lasocki KL Gates Q1 @MarketDistortions: It looks like such risk has been considered by legislators. The most generous support for all solar installations is planned for 2013 and 2014. Afterwards it’s going to be significantly lower. What’s more, medium-size installations, with the capacity of 1 to 10MW, would receive considerably lower value

of green certificates than those up to 1 MW (2.45 and 2.75 coefficient, respectively). Industrial-size solar farms - above 10 MW - will not be supported at all under the proposed new system. There are a few practical considerations, too. Free interconnection capacity for generators is scarce and fees for exclusion of high quality land from agricultural production are high in Poland. With this taken into account, one can hardly expect uncontrolled growth and hundreds or thousands of MW of PV. Q2 @LegislativeDelays: This has been affecting the market for some time already. There are practically no new market entrants and hardly any investments in the form of project finance in the wind sector. People want certainty and currently no one knows how long the current system will last. The status quo is most profitable for cofiring of biomass. Technologies that are supposed to receive more green certificates, in line with the currently available draft law, are in a difficult situation. For example: if someone builds 1 MW PV under the current law, they would receive 1 green certificate per 1 MWh. Under the new law, it would be 2.85 green certificates per 1 MWh for 15 years. If the RES law enters into force in 2014, companies that built PV in 2013 would be stuck with 1 certificate per 1 MWh for the next 15 years, while their competitors would receive 2.85 certificate per 1 MWh. In effect, almost no one is building PV. Everyone is waiting for the promised higher support.

Maciej Jóźwiak Eversheds Q1 @MarketDistortions: The amendment of regulations concerning the support for photovoltaic energy may contribute to the development of this sector in Poland. Any such incentives should be implemented cautiously, however, with constant monitoring of the potential effects that they may cause. Some European countries have already gone through a “photovoltaic boom,” with varying results. Spain would be a good example, as the aggressive support policy led to distortion of the market. Similar effects, although not as strong, are visible in Germany and the Czech Republic. If the support for PV in Poland is carried out with due consideration, we may expect the market to develop smoothly with no breakdowns.

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“The Polish green certificates scheme proposed in the draft law mitigates risk as market demand for certificates acts as a ceiling for public support for renewables” Maciej Wesołowski, DLA Piper Wiater

Q2 @LegislativeDelays: The process of amending the renewable energy regulations has been underway for a very long time. Considering that the draft regulation is already public and there’s still a lot of controversy, in particular on the part of business, undue extension of the legislative process will not be neutral. One of the risks is that any investor planning to execute a project relies on the stability and certainty of the law. Consequently, this could impact investors’ decision-making process. The longer the uncertainty over the legal situation, the more harm it can do.

Arkadiusz Krasnodębski Salans

60 | CLeantech | Q2 2013

Q1 @MarketDistortions: With 92 percent of energy generation based on coal, Poland needs expensive and time consuming effort to boost efficiency at coal-fired power plants, develop gas and, possibly, nuclear power. Renewables should complement that effort. I am quite confident that we will see a boom in solar in Poland, if the new law on renewables retains the draft proposals that we have seen recently. PV may prove cheaper and easier than wind, let alone biomass or hydropower projects. The market may be disturbed, of course, but that will depend on the number of PV projects, especially the bigger ones. Their development will be limited, however, by the ability of TSO and DSOs to interconnect them. Q2 @LegislativeDelays: The effects will be multiple and negative. Even now financial institutions are openly less inclined to finance new renewable energy projects. They prefer to wait and see how the final support system will look. If financing is provided, financing institutions impose various triggers in their favor to secure their interests in case the regulatory framework in Poland develops in an unfavorable way. Moreover, current regulations don’t guarantee long term stability, as virtu-

ally no one knows how long they will be in effect. There are many more examples, almost none of them in favor of the renewables’ sector. Therefore, efforts are needed by all interested parties to put pressure on the legislators, so we don’t need to answer the same questions again in January 2014. EDITOR’S NOTE: These interviews were compiled in January 2013. At the time, the current draft law of the renewable energy law had been made public, and was pending approval by the council of minsters. The following are the main assumptions: ASSUMPTION 1: The support for renewable energy is planned as a feed-in-tariff for micro- and small installations up to 100 kW and a green certificate with a price floor for all other forms of renewable energy. ASSUMPTION 2: Renewable energy will be given un-equal support, based on a correction co-efficient given in the table in INDICATORS on p. 14. As of the publication of Cleantech vol. 4 the RES law had not passed.

SOLAR SECTION

ROOFTOP SOLAR

CAPITAL CITY PV

Most sources of renewable energy aren’t fit for cities. Solar PV is one exception. If the new law passes, Warsaw could see a boom in the installation of solar PV. B Y P ablo C as t ella n os

about the potential their roofs have. This is about to change. If the new law on renewables is passed photovoltaic (PV) installations will receive the most generous RES subsidy (see Indicators, p. 14). Recently, the city of Warsaw was introduced to solar PV. A small project visible along Armii Ludowej street - was completed by the Deutsche Energie Agentur and the PV laboratory of the Warsaw Institute of Technology. Although it’s not rooftop, it is a project in the city limits that serves as a good example. Designed by MP-Tec, a German developer with offices in Poland, two PV installations were set on the premises of the Faculty of Civil Engineering at the Warsaw Institute of Technology. One of the solar PV installations is stationary; the other is “self-tracking”, enhancing power production by following the sun. The solar PV project was co-financed by the German Federal Ministry of Economics and Technology (BMWi). Adam de Sola Pool, CEO of Environmental Investment Partners, says projects like the MP-Tec demonstration facility are only the beginning of a possible boom in rooftop solar. “I expect a boom. I know that hundreds of megawatts of PV power are being planned,” Mr. de Sola Pool said.

“Warsaw has a lot of roofs. If you could make a plug & play solution so that you don’t have to engineer each roof, you could have a very easy development opportunity,” Mr. de Sola Pool added. With the proposed support, a payback time of five to six years can be expected, with a twelve percent return on investment over a twenty-five year horizon. According to Leszek Drogosz, the director of the infrastructure department at the Warsaw, city hall is getting ready for the PV boom as well. “We are participating in a program called Cities on Power and planning to have a special map of roofs in Warsaw showing the best places for solar pow-

ered installations. The map will provide information such as irradiance and economic output,” said Mr. Drogosz. The period of subsidy available for PV installations is limited by the renewable energy draft law to 15 years from the date of the PV installation. Additionally, support for installations with a capacity of up to 100 kW - those eligible for the fixed feed in tariff - will be cancelled by end of 2027. Although the subsidies are promising, the solar PV potential of Warsaw is not for sure, as the law hasn’t passed. “I wish the government would be clear about the law. The longer there is uncertainty the more difficult it is to hold on,” said Mr. de Sola Pool.

MP-Tec designed and built this demonstration facility to inspire a new approach to generating power in the city

MPTEC

Most people don’t think

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ALTHOUGH NOT A TRUE application of renewable energy, unless the fuel source is derived from biogas, mico-generation turbines (D) provide an energy efficient option that allows building owners to produce heat and power from just about any fuel source. Both solar PV (A) and solar thermal (C) provide a way to produce heat and power from the sun's energy. Most buildings will consume all the solar power they produce, although some owners will choose to sell the electricity to the grid, before pulling it back out. A ground source heat pump (E) is perhaps the most energy efficient method to heat and cool a building, dependent upon a deep network of cooling pipes, which are here not pictured at actual depth. An energy efficent building envelope (B) is critical as well. After all, a kW of renewable energy saved is a kW of renewable energy produced.

RES IN BUILDINGS

Sun, Wind & Earth Progressive developers are installing geothermal heat pumps and energy efficient micro-turbines, partly to achieve a green building designation, and partly to hedge against future energy price increases. B y w o j ciech k osc G R A P H I C by O L A F O R Y S

new law on energy efficiency in buildings that should enter into force within a year is the requirement that buildings derive a portion of their power needs from renewable sources. According to the draft law, new and renovated buildings will have to produce 13 percent of the energy they need from on-site renewable sources. The draft makes an exemption for the buildings of public institutions, putting the requirement at only 10 percent. HEDGE AGAINST PRICE HIKE According to Devin Saylor, sustainability director at Skanska Commercial Development Europe, a real estate developer, these requirements should be welcomed, even if the renewable energy lobby Institute of Renewable Energy (IEO) has called upon the government to up the requirement to 20 percent. "Renewable energy systems have an impact on building operating expenses. At Skanska, we have a new project underway that will provide a considerable amount of heating and cooling

62 | CLeantech | Q2 2013

through a deep well geothermal system. This reduces operating expenses in the immediate term as well as in the future. Renewables and energy efficiency are important as energy prices increase," Ms. Saylor said. BUILDINGS ARE KEY Due to increasing demand, lack of new supplies, and onerous emissions requirements, the price of energy is likely to outpace inflation over the next decade. According to analysts of the European Union's decarbonization policy, the EU's carbon cap and trade system (the EU ETS) should increase the price of CO2 allowances, although at present the carbon price is falling. Because Polish utilities will have to buy emissions rights at auction, the increased cost will be passed on to end users. However, rising carbon prices can be mitigated if an effort is made to promote renewable energy in buildings. According to Maciej Bukowski, CEO of the Institute for Structural Research, energy generation and saving energy in buildings offer as much as 75 percent

RES BUILDING OPTIONS CLEANTECH RESEARCH

One aspect of the upcoming

SOLAR PV

ENERGY EFFICIENT ENVELOPE

SOLAR THERMAL

MICRO-GENERATION

GROUND SOURCE HEAT PUMPS

GREEN BUILDING

A B

of the overall potential to reduce emissions in Poland. "Poland has the potential to reduce emissions by up to 75 percent by 2050 against the emissions level from 1990. It will of course take a lot to achieve the high end of the possible reductions scale, like carbon capture and storage and investments worth 1.1 percent of the Polish GDP on annual average. On the other hand, this would bring about energy savings equal to 1.4 percent of GDP," Mr. Bukowski said. Besides purchasing power from renewable sources, developers can install solar PV modules (to produce power) and solar thermal collectors (to produce heat). Ground source heat pumps use the constant temperature of the earth to heat and cool. Micro-generation, or small turbines, may also provide a renewable option if the fuel source is derived from biogas. Some far-sighted developers such as Skanska are already employing these solutions in their projects, accepting higher upfront costs in the name of long term benefits and at least partial independence from utilities. Expect others to follow their lead.

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PUBLIC TRANSIT

Low carbon

Wheels

Like many major metropolitan regions, Warsaw public transport is greatly dependent upon its buses. A change is underway to push the heavily polluting Warsaw bus fleet towards more sustainable alternatives.

B y pabl o cast e llan o s

Solaris Bus & Coach, a bus

manufacturing company, is a major supplier of vehicles to MZA, one of Warsaw’s public bus operators. Mateusz Figaszewski, deputy director of public relations at Solaris, says that due to improvements in diesel engines and catalytic reduction, buses today emit significantly lower quantities of nitrogen oxides (NOx) and particulate matter (PM), in addition to reductions in carbon monoxide (CO) and hydrocarbons (HC), This is all in line with the always more stringent European Emission Standards. MZA is further reducing the environmental impact of its bus fleet, as all new bus purchases that the company is commissioning will now have to comply with the stringent Euro 5 norm that puts emissions of CO at 1.5 grams per kWh, HC at 0.46 g/kWh, NOx at 2g/kWh and PM at 0.02 g/kWh (see table for comparison of Euro norms for buses). THE DIRTY DOZEN(S) MZA is keen to introduce new buses as soon as possible as the old ones are responsible for a far larger amount of emissions than their numbers suggest. A study carried out by MZA found that buses in the MZA fleet that are 12 years 64 | CLeantech |Q2 2013

or older - 30 percent of the entire fleet are responsible for almost 76 percent of the NOx and over 85 percent of the PM emissions. New eco-friendly buses won’t solve all problems with emissions in Warsaw public transit, however. According to MZA spokesman Adam Stawicki, the next step is to train drivers to drive efficiently. “MZA is implementing a pilot driver training program called ‘Eco manager’. A hundred drivers will learn to drive so as to reduce fuel consumption, improve driving safety as well as increase the fleet’s lifetime,” Mr. Stawicki said. ELECTRIC FUTURE Many technologies are still in line to be tested in Warsaw’s public transport on a wider scale. MZA operates four hybrid buses, for example, that can provide a further 20-30 percent savings on fuel and the ensuing emissions reductions. Hybrid buses can use the current diesel infrastructure, an advantage over technologies like CNG (compressed natural gas) or electric buses that are on the radar for MZA but will require development of wholly new infrastructure of filling stations/charging stations and service shops. These new technologies’

The Warsaw bus fleet is being renewed, twelve tires at a time

environmental performance could offset the cost of their introduction, according to Mr. Figaszewski. “[Electric buses] are zero emission vehicles and can run on 3-5 times less cost per kilometer. Also the engine’s lifetime is closer to 20 years. We think that the future lies in the purely electric buses because of economy and environment protection,” Mr. Figaszewski said. The downside of electric vehicles may be that in Poland, where over 90 percent of electricity is produced from emissionsintensive fossil fuels, these buses’ will still have a carbon footprint.

TRANSPORT

Eur o n o r m s f o r l o rri e s an d bus e s ( g ra m s / k W h ) Tier

SOURCE: EUROPEAN COMMISSION

Euro II

CO (carbon monoxide)

HC (hydro carbons)

NOx (nitrogen oxides)

PM (particulate matter)

1992, < 85 kW

4.5

1.1

0.612

1992, > 85 kW

4.5

1.1

0.36

October 1996

1.1

0.25

October 1998

1.1

0.15

October 1999 (EEVs only)

0.25

0.02

October 2000

2.1

0.66

0.1

Euro IV

October 2005

1.5

0.46

3.5

0.02

Euro V

October 2008

1.5

0.46

0.02

Euro VI

December 2013

1.5

0.13

0.4

0.01

Euro III

PHOTOPIN

Euro I

Date

Emissions restrictions are getting tougher THE EU IS CHALLENGING the assumption that emissions standards for vehicles are “good enough.” Each cycle of emissions reduction standards has called on manufacturers to progressively reduce emissions. CO (carbon monoxide), a byproduct deadly to humans, has been phased down. So have NOx (nitrogen oxides) and particulate matter (PM). The quality of air across Europe in major metropolitan areas varies, but it’s safe to say that with each passing of new emissions standards for vehicles, the air quality in cities gets better for the inhabitants.

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RESEARCH & DEVELOPMENT

A Scientist's

Research and development spending has long been Poland’s obstacle on the way from a cheap labor economy manifested by scores of BPO centers to a value-added economy relying upon innovation. Is Cezamat one project or a new trend?

CEZAMAT

Dream Job

By WOJCIECH KOSC

Slowly but surely, research

and development (R&D) projects are taking priority in Poland. A recent example is Cezamat, or the Center for Advanced Materials, being built in Warsaw. Cezamat will research new technologies that offer high scientific and commercial potential. Cezamat will facilitate interdisciplinary research in nanotechnology, micro- and nanoelectronics, semiconductor microsystems, photonics, materials, and biotechnology. HIGH TECH The project will consist of five laboratories equipped that enable interdisciplin-

ary studies to be carried out in fields that were impossible to develop in Poland due to lack of suitable technology and infrastructure. According to Romuald Beck, professor of electronics at the Warsaw University of Technology (PW) and deputy CEO for scientific matters at Cezamat, the research projects will also boost research into areas like energy. “We will concentrate on renewable sources of energy, particularly solar, and pioneering works on energy from electromagnetic field, gravitational field or heat recovery,” Mr. Beck said. “In solar research we will specifically concentrate on ways to improve the efficiency of solar PV cells by working on

W ho participates in the lab ? Warsaw University of Technology Institute of Physical Chemistry, Polish Academy of Sciences Institute of Physics, Polish Academy of Sciences SOURCE: CEZAMAT

Institute of High Pressure Physics, Polish Academy of Sciences Institute of Fundamental Technological Research, Polish Academy of Sciences Institute of Electronic Materials Technology University of Warsaw Military University of Technology

Cezamat’s laboratories will consist of the central laboratory, the laboratory of quantum nitride structures, the laboratory for optical spectroscopic research and magnetic research, the laboratory for laser nanotechnologies, and the laboratory for the generation of precise lithographic chrome masks and micro-optical diffraction structures.

66 | CLeantech | Q2 2013

improvement to their construction and material engineering,” he said. “Priority will be given to projects that will have a good chance of being applied in practice and have an impact on the economy,” Mr. Beck said. “Cezamat will also become a testing ground for companies who would not be able to test their innovative solutions,” he added. LOTS OF LABS Cezamat will be a complex of laboratories equipped with state-of-the-art technological. For example, laboratories will offer rooms with different classes of cleanliness, high resistance to vibrations or electromagnetic radiation. Clean-rooms will not only be characterised by a high class of air purity (even class 10, according to US FED STD 209E norm, meaning no more than 10 particles of 0.5 µm size per cubic foot of air), but will also be equipped with utilities like ultra-pure gases and deionised water. According to Mr. Beck, some research projects from PW and other research centers will relocate to Cezamat to continue work in better conditions, but more important is that Cezamat, thanks to its unique technical and research infrastructure, will allow to start wholly new projects too. This project could be a boom for the start of an innovative economy.

ADVERtORIAL

Brama Portowa

picture: SWEDECENTER

Two new office buildings in the heart of Szczecin demonstrate the best of environmental construction. Thes groundbreaking projects are first for the city of Szczecin, and soon to be beloved by tenants.

SwedeCenter: Szczecin offices are environmentally friendly

sk Tomasz Okuszko, a project manager for the developer SwedeCenter, about two new office buildings in the city center, and he'll tell you they are two of the most environmental friendly and power saving projects in Szczecin. The office buildings are located at the place of the former Grzybek, near the post office at the Brama Portowa Square. The six-storey “Grzybek” features more than 4,500 square meters of space. The other office building, the “Poczta,” is a seven story building with a total area exceeding 8,000 square meters. Flexible arrangement Tenants can arrange the space as they like due to the fact that rooms are characterized by practically no architectural barriers. The space is free from any posts, columns or walls restricting or imposing any arrangement solutions. Natural daylighting In both buildings, there are many windows to light the interior spaces, nearly forty percent. All of them open, which is not typical for such buildings.

Tenants knowing they can open the windows, prefer to have control over how the spaces are cooled. Energy efficient cooling Cooling beams within office area don’t have fans. In both Grzybek and Poczta, cool air comes from ventilating units. In case of Grzybek, ventilating units are located at the top floor. In Poczta, the units are located in the underground part of the building in dedicated mechanical closets. Emission reductions “We should remember that energy efficient systems use less power, and in Poland, power is generated mainly from burning coal. Thus, by reducing power consumption we decrease the combustion of coal and carbon dioxide emissions to the air. That’s a significant

benefit for the environment,” said Mr. Okuszko. Bicycles and electric vehicles Underground parking garages are located in both buildings. There are also spaces for bicycles in the garage and in front of buildings. Electric vehicles and hybrid vehicles can also plug into the power system to charge batteries. Since some tenants prefer active lifestyles, bicycle racks, covered garages and shower facilities will be provided. LEED certified Buildings constructed using environmentally friendly solutions can apply for a green building designation known as LEED. In Szczecin there are no buildings meeting such standards, so this project will be the first.

“Year after year, the interest in constructing LEED or BREEAM (British equivalent of LEED) certified office buildings grows.” Tomasz Okuszko, Project Manager, SWEDECENTER

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â&#x20AC;&#x153;

Growing cotton the conventional way is a bit like modern slaveryâ&#x20AC;?

68 | CLeantech | Q2 2013

LIFESTYLE

FASHION

Always

been a

Dreamer

Green fashion is still a mi-

nor trend, but Luiza Jacob has found a business niche. Dream Nation, the brand she created, reaches buyers in France and Japan through a storefront on “Etsy”, a handmade artist’s portal. Ms. Jacob is a Polish designer who has embraced green fashion in an industry not particularly known for taking up ethical and environmental best practices. She has built an entire business on green fashion, adopting environmental best practices for the clothing she designs for women and children. And she sells well, by the way. HERE’S THE PROBLEM The fashion industry, in the view of the Łódź trained designer, has become inextricably dependent upon cheap, sweat-shop labor in distant garment districts mostly in south-east Asia. Conditions are worse for the farmers who grow conventional cotton, she says. “The farmers borrow for the fertilizer and pesticide, and if the crop fails, they are vastly indebted to their creditors. Twenty thousand farmers die every year from pesticide poisoning. Many commit sui-

Luiza Jacob is an entrepreneur with a bold idea. She prints bright, lively patterns on bamboo and organic cotton, that gets blended with synthetic materials for stretch, and exports her green fashion all over the world. B y H U N T E R D I A M O N D p hoto g ra p h y b y s z y mon s z c z e S nia k

cide because they can’t pay back their debts,” Ms. Jacob says. Occasionally this dour world gets opened up to Westerners. Most recently a Bangladesh factory-fire claimed lives of tens of workers who burned to death, despite inspections which cautioned that the factory was a fire disaster waiting to happen. Ms. Jacob wants to see the traditional fashion industry change for the better. “Growing cotton the conventional way is a bit like modern slavery,” Ms. Jacob said. To be the small change in the world (she has it tattoed on her forearm) Ms. Jacob works out of a bright three story house in Saska Kępa, on the east bank of the Vistula River that runs through Warsaw. There she designs, cuts, prototypes and photographs her designer leggings and dress-tops for women and children.

“Organic cotton is better. It absorbs the dye better than conventional cotton. It’s mercury and formaldehyde free. It feels great on the skin," she said. GOOD LOOKING When Ms. Jacob got her start, she looked around at the clothing that was being promoted as “green fashion” and was disappointed. The pants, shirts and shoes looked made for hippies, designed for people who didn’t seem to care about fashion at all. She created Dream Nation as a fun, smart, sexy brand that doesn’t look like eco-fashion. She sells her clothing to people who just like it because it’s chic. Even on her website, (dreamnation. eu), you have to dig a bit before the environmental message comes across. The environmental message is just the subtext.

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A Warsaw showcase home demonstrates LED lighting. Because LEDs emit less heat, they can be put just about anywhere, including streetscapes and sidewalks

70 | CLeantech | Q2 2013

LIFESTYLE

LIGHTING

all-LED

House

A light emitting diode (LED) is part computer, part appliance. Using them for lighting is an investment up front that pays off quickly because it uses much less energy than both conventional (incadescent) and CFL (compact-flourescent) lighting. Further to the point, LED lighting can last for years. By wojciech kosc p h o t o g r a p h y b y S z y m o n s z c z e s ni a k & K L U S D ES I G N

It’s the house without a light

bulb. A modern Warsaw house in the suburbs - that’s where Kluś Design company designs and constructs products with light emitting diodes (LEDs) in a house built for show-and-tell. “It’s our lab and showcase of how to use LED lighting in a household,” said Sylwester Kluś, the founder and CEO of the company. On a recent visit, Mr. Kluś led this reporter to a large room that serves as the company’s headquarters. “Unlike traditional lighting, you can put LED anywhere you like. It will work for years and use a quarter of the energy that traditional lighting does,” Mr. Kluś said. He points to a lamp over a kitchen top that’s supposed to work for 35,000 hours, or four years, if lit non-stop. There are big LED lamps in the ceilings, but also small LED strips inside drawers and cupboards. The company orders LEDs in strips that one can buy by the meter, and then designs lamps or other lighting devices that can fit not just rooms, but also facades or driveways.

COLOR RENDERS LUMINAIRE Mr. Kluś says, however, that not all LED products are alike. “What you mostly can get at supermarkets is LED, but its parameters don’t guarantee you reduced energy use or the long work time,” he said. “If you’re ever buying LED lighting for your house or company, pay attention to two basic parameters. One is color rendering index of at least 80, which is the ability of a light source to reproduce objects’ colors faithfully in comparison to natural light. The other is luminaire efficiency of 100 or more, or the amount of light that is actually emitted by a lamp,” said Mr. Kluś. The first few years were tough, he remarked, because it was hard to convince customers to buy LED, which is few times more expensive than traditional lighting, even if the expense pays off through low energy use and the longevity. Today, however, LED use is a growing national and global trend. For example, the municipality of Trzebielino, has recently replaced all of its street

lighting with LED and expects the lighting cost to drop by 55 percent annually. According to a report from Frost and Sulivan, a consultancy, the global LED lighting market will have grown from USD 3.57 billion (€2.63 billion) in 2011 to USD 23.24 billion (€17.16 billion) in 2018.

Touch it, it's not hot

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innovation essay contest www.Cleantechpoland.com/contest

72 | CLeantech |Q2 2013

2012 WINNERS

1st

place

Daniel Sola Fagorusi 5,000 PLN “More than a degree”

2nd place

3rd

place

Tomasz Pilewicz iPad “Global student challenge”

Reynaldo Gabunada Honorable mention “Harvest”

2nd ANNUAL CONTEST BEGINS APR 1, 2013

Editor’s note: In the fall of 2012, Cleantech Poland launched an essay contest for ideas that link environment and business while promoting innovation in society.

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| 73

2nd

The full text of the runner up essay and information about the 2013 Cleantech essay contest can be accessed at:

place

cleantechpoland.com/contest

E S S AY C O N T E S T

Global Student

Challenge

The deal is simple – for acting responsibly and using resources wisely, students create savings that support events they would like to organize or attend. B y T o m as z P i l e w i c z p h oto g r ap h y by s z y m on s z c z e S n i a k

Being a student is a period

in life that people often value the most and from which they have warm memories. This is a period when you learn, inspire yourself and inspire others, meet new people and party a lot. Studying influences your further choices, and the experience you gain while studying will accompany your entire life. This is why this is great moment for dreaming big and making sustainable changes. Hundreds of thousands of students live in dormitories. Dormitories are cauldrons of creativity, they could serve as first manufacturing sites or business offices. They are the places where you, for the first time in life, realize that you can do something really important. Dormitories need electricity and utilities to run. While studying in Poland, Germany and Lithuania and visiting student houses in the United Kingdom or Malta, I was always wonderAuthor ing how much electricity receives an and resources could be iPad for his runner up saved by implementing essay incremental changes in 74 | CLeantech

| Q2 2013

students’ behavior but also by introducing simple technological solutions. I have seen plenty of PCs and laptops left turned on for the night just not to turn them back on in the morning, or chargers plug into the sockets while not connected to mobile devices and thus acting as the “leech” plugs. An oft-seen sad view was water uselessly running into the sink. What inspired me was the Global Corporate Challenge (GCC), where teams wear pedometers (devices counting steps you make each day) to compete with others for the biggest distance covered in a defined period of time. As you compete with others,

you try to perform just a little bit better than your rivals, you get out of your box, move a lot and in result you are healthier and live fuller. The 2012 edition of GCC engaged more than 180,000 people. I believe that instead of trying to change students’ habits with information campaigns, it could be worth trying to kick-off a competition for the most energy and media saving dormitory or campus. The deal is simple – for acting responsibly and using resources wisely, students create savings that support events they would like to organize or attend. Savings could also go towards equipping rooms with energy saving devices, like LED bulbs, or water aerator taps. For benchmarking, the utility bills for dormitories or campuses could be used from the period preceding the challenge. In the academic year 2010/2011 there were close to 120,000 students living in dormitories across Poland. You can apply this way of thinking to whole campuses for the challenge to make a real difference.

v e n tMs I X E R B U S Ie NESS From left, Piotr Wasilewski of DTZ, host of a business mixer dedicated to green building at the Vitkac in Warsaw on stage with Parker Snyder of Cleantech

DTZ BUSINESS MIXER Marta Szczepanik, an associate with Noerr law firm, during the networking sesssion

GREEN BUILDING From left, Aneta WiÄ&#x2122;cka of IEO, in conversation with Christian Schnell of DMS law firm, during networking

ORGANIZED BY

Participants of the Cleantech cover photo receive a print copy. From left, Hans van de Sanden of Grontmij, Agnes Vorbrodt CEO of PLGBC, Bartlomiej Kisielewski a partner of Horizone Studio, Eelko Korteweg of SwedeCenter, Peter Hartmann of Porr, Robert Borowicz of DTZ, and Parker Snyder Director of Cleantech Poland From left, MichaĹ&#x201A; Pszkit and Marek Paczuski of DTZ chatting shortly after the panel discussion concluded on green building

Devin Saylor, Skanska Property Poland, makes a comment on sustainable commercial real estate

From left, Bartlomiej Kisielewski and Peter Hartmann during speed networking

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Go there and you will find the Cleantech magazine!

Cleantech Q2 Calendar MAR

APR

01 04 07 10 14 17 21 24 27 30 01 02 05

PV POWER PLANTS Solarpraxis

March 13-15, 2013 Solar Warsaw, Poland

Intl. Emissions Trading Congress PowerMeetings.pl April 11-12, 2013 Carbon Trading Warsaw, Poland

GREENPOWER Poznan Intl. Fair May 14-16, 2013 Cleantech Poznan, Poland

76 | CLeantech | Q2 2013

MAY

14 17 20 23 26 29 01 02 05

Since PV is becoming less expensive and the prices for electricity from conventional plants are climbing, solar plants are attractive. Solar farm market segment is getting progressively more lucrative for financially strong investors. Another advantage is the speed of the implementation. Photovoltaic plants with large outputs of 100 MW and above can be installed in a matter of months. No other technology is able to match this.

As 2013 begins, the EU has entered the so-called third settlement period, which introduces an auctioning system in emissions trading. Following an EU decision, the auctioning of allowances ought to be the underlying principle applied to allocations in the third period, with the hope of providing transparency and simplicity – while acting as a stimulus to invest in low-emission technologies. This event is designed for international emissions traders and analysts.

The Greenpower fair is organized by the Poznań International Fair in cooperation with the Polish Econ. Chamber of renewable energy. Exhibition includes wind power, hydro, solar and geothermal, solid and liquid biofuels, biogas and energy-saving technologies. The event is addressed to experts and end-users, and showcases agro-tourism infrastructure, modern RES installations, solar collectors, photovoltaic panels and backyard wind turbines.

JUN

CEE ENERGY CONFERENCE EEL Events March 20-21, 2013 Energy Finance Warsaw, Poland

PSEW Polish Wind Energy Assoc. April 24-25, 2013 Wind Serock, Poland

POLEKO Poznan Intl. Fair

October 7-10, 2013 Cleantech Poznan, Poland

14 17 20 23 26 29

With increasing energy demand, dependency on imports, outdated generation capacity and ever-increasing regulatory demands, CEE nations are looking for new options. National incumbents and investors alike are interested in opportunities. Hope is pinned to the upgrading of existing nuclear and coal facilities, as well as new generation capacity such as solar and wind. However, are these projects bankable and do they have adequate support to meet EU targets?

The PSEW conference is the largest wind event in Poland. Traditionally participants of the conference will learn about the current market, acquire information about the latest trends and listen to the latest growth forecasts for the wind power sector in Poland, in Europe and worldwide. The event is an opportunity to learn many urgent legal, technological or financial issues. Every year the thematic sessions are run by experts from the wind power industry.

POLEKO International Trade Fair of Environmental Protection and its accompanying events will take place on October 7-10, 2013 in Poznań. For POLEKO this will be the 25th fair edition. The trade fair is also a sector-specific information platform – POLEKO participants come to Poznań in order to find and share information on the latest trends from the field of recycling, production of energy from renewable sources, sewage discharge, water management, etc.

PORTRAIT

By WOJCIECH KOSC p ho t o g r a p h y : K a r o l G r y g o r u k

Julia Michalak Julia Michalak works in Brussels as a policy officer at the Climate Action Network Europe. She’s a woman riding waves.

Riding the wave

AWAY FROM IT ALL I love hiking with a backpack and no phone or e-mail. Northern Europe is where I love going to most. It isn’t hot and crowded, it’s beautiful and it can be pristine. A lot of people think that the more distance you go - usually all the faraway tropical locations - the better, but there’s so much to see in your own backyard. My last trip was to Iceland: highland deserts, hot springs, lava fields, volcanos.

There’s a shift in paradigm for societies and economies that is so sweeping that probably can be compared only to the industrial revolution. New solutions are needed for growth and environmental protection to go hand in hand. In order to take advantage of it, one needs to ride the wave of change rather than wait until it drowns you.

SAVING THE EU ETS Currently the ETS is not driving clean technologies and innovation. The market is oversupplied with allowances and the carbon price signal is so weak that investors have no incentive to switch to cleaner production. Just like in any other market, curbing supply in an already oversupplied market is a justified response. Not only NGOs but also many businesses are pointing out that a fundamental intervention in the carbon market is urgently needed.

Back to Poland? I’d like to go back and contribute to the necessary change in Poland. There’s so much work to do and there’ such great potential for green investments. Going against the EU climate and energy policy is not the right way for Polish government, because the EU will move forward anyway and Poland will eventually lag behind if it dig’s in its heels.

78 | CLeantech | Q2 2013

A D V E R t O R I AL

picture: SAVILLS

Having been appointed letting agents at Sukcesja Centre in Lódź, a new 120,000 sq meter green development, the retail team in Poland is looking for the right tenants in a market where sustainable is still a young trend.

Lighting in stores is the most significant contributor to energy consumption in shopping centres

Renata Kusznier sk a, savills

SAVILLS: Poland retail team is gunning for green tenants dividual tenants operate independently under the same roof.” Renata explains that lighting in stores is the most significant contributor to energy consumption in shopping centres. Excessive lighting causes shop floors to heat up which in turn leads tenants to use additional energy for cooling installations. However, with the implementation of new LED technology the temperature and colour of lighting in shops can be controlled. In order to comply with green building policies, as well as LED lighting the scheme will implement hundreds of measures including a modern BMS (building management system),

heat pumps, rainwater storage on the roof and a special waste segregation system. Construction work began at the end of 2012 and is being carried out according to BREEAM requirements, which includes using certified materials, monitoring emissions on shipment routes and maintaining good relationships with the neighboring properties, among other stipulations. The Sukcesja scheme, which is located on Politechniki Avenue in central Poland, is already 30% let to tenants including Cinema Helios, Pure Jatomi Fitness, Rossman and clothing retailer LLP group.

picture: SAVILLS

The scheme is being developed by Polish investor Fabryka Biznesu and comprises a shopping mall with 170 retail and leisure units as well as a hotel, an entertainment zone including a nine-screen cinema, a fitness club and a children’s playground. The development is due to be completed in 2014 and will be constructed as a ‘green’ facility with BREEAM passlevel certification. Renata Kusznierska, head of retail agency and property management at Savills Poland, says: “Green shopping centres are still a relatively new trend in Poland and require a very specific approach in terms of commercialisation and property management in order to optimise operational costs. It is also important to find the right tenants and work with them closely to maximise energy saving solutions, promote environmentally-friendly working practices and make the most of the sustainable facility. This is why it is essential that we discuss and educate potential tenants on what it involves to take space in such a facility from the beginning. This is particularly the case in shopping centres where so many in-

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