Ministerstwo gospodarki ang

RENEWABLE ENERGY SOURCES

WYKROJNIK

ENERGY SECURITY

WYKROJNIK

WYKROJNIK

ENERGY EFFICIENCY

ENERGY PROJECTS growth driver

SELECTED POLISH EN ERGY PROJECTS SU PPORTED BY TH E FU N DS OF TH E OPERATIONAL PROGRAMM E I N FRASTRUCTU RE AN D ENVI RON M ENT

See changes in progress More information at: www.pois.gov.pl

CONTENTS:

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Challenges and opportunities of EU membership

3 Operational Programme Infrastructure and Environment

4 Energy Sector

7 OPI&E Management System

Examples of co-financed projects

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High-raise energy

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At a wind farm Energy recovered from waste

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Green energy from plants Green energy in a great network

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Steel foundations of energy

Challenges and opportunities of EU membership Since May 1, 2004, Poland has been a member of the European Union (EU). Due to its membership in the European Community structures, Poland has joined the implementation of the EU cohesion policy. The aim of the cohesion policy is striving for harmonious development of all EU Member States. This aim is being achieved through measures that result in narrowing the gap in the level of development between the regions, and hence in reinforcement of the economic, social and territorial cohesion of the EU as a whole. The right targeting of the measures implemented under the cohesion policy with financial support from the structural funds and the Cohesion Fund, gave Poland the opportunity to increase its modernisation rate, and to considerably speed up the processes aimed at achieving an equalised level of development as compared to the best developed Community regions and states.

The EU funds are disbursed through programmes, which describe the areas covered by

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co-financing, and the characteristic of projects whose implementation is convergent with the aims of the National Cohesion Strategy (NCS). The Strategy is a document specifying the support directions at the national level that are financed from the EU budget under the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund.

The programmes being implemented in Poland in 2007-2013 include: Operational Programme Infrastructure and Environment (co-financed from the ERDF and the CF), Operational Programme Innovative Economy (co-financed from the ERDF), Operational Programme Human Capital (co-financed from the ESF), 16 Regional Operational Programmes (co-financed from the ERDF), Operational Programme Development of Eastern Poland (co-financed from the ERDF), Operational Programme Technical Assistance (co-financed from the ERDF) and European Territorial Cooperation Programmes (co-financed from the ERDF).

Infrastructure and Environment Programme The Infrastructure and Environment Programme was approved by way of a decision of the European Commission on December 7, 2007, and by way of a resolution of the Council of Ministers of January 3, 2008. The Programme is to decrease the differences in infrastructure development between Poland and the best developed EU states. The gap in infrastructure development prevents the optimum use of the country’s resources and largely blocks the existing potential. Narrowing this gap preconditions the increase in Poland’s competitiveness and a raise in its attractiveness for investors, while protecting and improving the status of the environment and human health, preserving cultural identity and developing territorial cohesion.

The Operational Programme Infrastructure and Environment (OPI&E) is characterised by an integral approach to the problems of infrastructure, to which the Programme classifies both technical infrastructure and social infrastructure. The Programme follows the principle of maximising development effects, which is made possible because of treating the technical and social spheres as a single whole. The measures under OPI&E are complementary with respect to the measures implemented under 16 Regional Operational Programmes, as well as other programmes prepared for the 2007-2013 period.

With regard to the amount of funds allocated for its implementation, OPI&E is the largest programme in Poland and one of the largest in the history of the EU cohesion policy. The contribution from the EU funds to the Programme implementation amounts to EUR 27.9 billion, of which EUR 22,176,353,774.0 comes from the Cohesion Fund, and EUR 5,737,330,000.0 from the European Regional Development Fund.

The Programme is additionally supported with national funds in the amount of ca. EUR 11 billion The funds come from the state budget, the budget of local self-government entities, other public funds and private means. The actual amount of the contribution coming from the national funds depends on the co-financing rate for individual projects.

The whole Infrastructure and Environment Programme is divided into sectors, which generally define the support area, these sectors are:

Environment

Transport

Energy

Higher education

Culture

Health

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Energy sector For the first time in the history of EU’s regional policy, co-financing has covered investments in energy infrastructure. The share of the energy sector in the envelope of the EU funds allocated to the implementation of the OPI&E is EUR 1,722,317,701.0 which represents 6% of the total value of the Programme. The energy sector covers Priorities IX and X, which encompass the following measures: Priority IX Environment-friendly energy infrastructure and energy efficiency • Measure 9.1 High-efficiency energy generation • Measure 9.2 Efficient distribution of energy • Measure 9.3 Thermomodernisation of public buildings • Measure 9.4 Generation of energy from renewable sources • Measure 9.5 Production of biofuels from renewable sources • Measure 9.6 Networks facilitating reception of energy from renewable sources

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Priority X Energy security, including diversification of the energy sources • Measure 10.1 Development of transmission systems for electricity, natural gas and crude oil, as well as

construction and reconstruction of natural gas storage facilities • Measure 10.2 Construction of natural gas distribution systems on areas not yet supplied with gas and modernisation of the existing distribution networks • Measure 10.3 Development of industry for renewable energy sources

PRIORITY IX ENVIRONMENT-FRIENDLY ENERGY INFRASTRUCTURE AND ENERGY EFFICIENCY The financial support under Priority IX is addressed to projects implemented in three main areas. The first of them is increasing the efficiency of primary energy use both by increasing the efficiency of generation and by decreasing the losses on energy transmission and distribution. The second area covers decreasing the energy consumption by the public sector. The last area of support under Priority IX consists in increasing production of energy from renewable sources.

Meeting the needs with respect to increasing the energy efficiency to a considerable extent is the expected effect of the projects implemented under this Priority. As for electricity distribution networks, public funds will be directed in particular to the areas of Eastern Poland. Modernisation of heating networks will have

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a significant influence on raising the energy efficiency in large urban agglomerations. Investments in energy and fuel production from renewable energy sources (RES) will contribute to economic activation of regions having conditions which facilitate the development of RES. An additional effect of implementing the measures of Priority IX will be development of both the industrial and agricultural sectors.

PRIORITY X ENERGY SECURITY, INCLUDING DIVERSIFICATION OF THE ENERGY SOURCES The main aim of the Priority is to improve the energy security of the state by creating new transmission and transport capacities for electric energy, natural gas, crude oil and oilderived products, by expanding underground storage facilities for natural gas and storage of crude oil and its derivatives, as well as by ensuring availability of a gas distribution system on areas not yet supplied with gas and modernisation of the existing distribution networks. The diversification of energy sources will be additionally supported by increasing the market availability of devices for producing energy from renewable sources.

The “Energy security” priority implements the aims of Poland’s energy policy with

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respect to ensuring energy security of the state, which is understood as a higher degree of diversification of delivery sources, improved fuel transport, transmission and distribution systems, improved energy transmission systems, and achieving the level of fuel stocks that ensure maintenance of continuous deliveries to recipients. At the same time, as a member of the European Union, Poland is implementing an energy policy which also takes into consideration the interests of other Member States.

By implementing projects that contribute to increasing the security of fuel and electricity deliveries to its internal market, Poland reinforces the security of the whole Community, and fulfils the obligations it has undertaken in connection with creating a uniform, competitive fuel and energy market of the Union.

Under the Priority, support will be granted to measures covering development of transmission and distribution systems for natural gas, oil and oil derivatives, development of transmission systems for electric energy, and construction and expansion of underground natural gas stores. Co-financing under the Priority will also cover construction of natural gas distribution systems on areas not yet supplied with gas. In addition, support will be allocated to preparing technical documentation for investments compliant with the Priority’s aims.

The text of the Infrastructure and Environment Programme and detailed information on the energy sector are available on website of the Ministry of Economy:

http://www.mg.gov.pl/node/10127

Management system for the Operational

Programme Infrastructure and Environment Implementation of the whole Operational Programme Infrastructure and Environment is subordinated to the Minister competent for regional development (Minister of Infrastructure and Development). The institution that supervises the Programme is called the Managing Authority (MA). The coordination of tasks in the individual sectors has been entrusted to the so-called Intermediary Bodies (IBs).

For the energy sector, the role of the Intermediary Body for the measures of Priority Axes IX and X of OPI&E is played by the Minister competent for economy, who fulfils his tasks with the help of the Department of European Funds in the Ministry of Economy.

The Ministry of Economy plays the role of the Implementing Institution for Measures 9.4, 9.5, 9.6 and 10.3 of OPI&E, i.e. it deals with

services for beneficiaries, announcing calls for proposals, collecting proposals, evaluating them, signing agreements and supervising their execution.

Other OPI&E measures are implemented by the National Fund for Environmental Protection and Water Management (Measures 9.1, 9.2, 9.3 of OPI&E) and the Oil and Gas Institute – National Research Institute (Measures 10.1 and 10.2 of OPI&E).

As part of the implemented OPI&E measures which concern renewable energy sources (RES), the Ministry of Economy has concluded 68 agreements on co-financing for implementation of projects with the total value of PLNÂ 5,751.5 thousand, including PLN 1,537.8 thousand of co-financing from the EU funds.

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High-raise energy

Construction of Wind Power Plants in the Paproć locality Measure: 9.4 of OPI&E

Beneficiary’s name: ISTRA Sp. z o.o.

64-300 Paproć Paproć 111 Voivodship: Wielkopolskie Poviat: Nowotomyski Total project value: PLN 50,526,801.00 Value of co-financing: PLN 23,957,820.00 Project implementation period: 2012-2013

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Since recently, two majestic structures tower over the Paproć locality near Nowy Tomyśl. The extraordinary size of wind towers, nearly 210-meter high, makes them the highest structures of this type in the world. Their bases are formed by 160 m high girders, and the diameter of turbine blades is as much as 100 meters. This visionary investment is expected to produce 19 GWh, i.e. 19 million kilowatt hours, of electric energy per year. By way of comparison, in Poland a family of three consumes about 3,500 kWh of electric energy in a twelve-month period.

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At a wind farm

Construction of a wind farm together with the necessary accompanying infrastructure in the Golice locality Measure: 9.4 of OPI&E

Beneficiary’s name: Golice Wind Farm Sp. z o.o.

00-837 Warszawa ul. Pańska 96 Voivodship: Lubuskie Poviat: Słubicki Total project value: PLN 223,001,545.74 Value of co-financing: PLN 40,000,000.00 Project implementation period: 2010-2012

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In March 2012, the locality of Golice saw the completion of an investment project which consisted in construction of a wind farm. There are 19 wind power plants on the area of almost 410 hectares. Each of them is 142.5 high including the blade, and has the power of 2.0 MW. This means that the total power of the farm is 38 MW. All power plants are adjusted to operation at low intensity winds, which translates into expected electric energy generation at the level of over 80 GWh per year! The electric energy produced at the farm is delivered to the network of the distribution system operator, ENEA Operator Sp. z o.o.

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Energy recovered from waste

Construction of Buczek Biogas Power Plant Measure: 9.4 of OPI&E

Beneficiary’s name: Bioelektrownia Buczek Sp. z o.o.

62-025 Kostrzyn ul. Wrzesińska 1B Voivodship: Kujawsko-Pomorskie Poviat: Świecki Total project value: PLN 33,662,747.13 Value of co-financing: PLN 18,748,861.25 Project implementation period: 2010-2013

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The Buczek Biogas Power Plant, situated in the locality of the same name, has been designed to produce electric energy from biogas generated in the process of agricultural waste decomposition. Plant and animal residues in liquid, semi-liquid and solid form will undergo decomposition processes in controlled conditions. The biogas obtained in this manner consists of 60% methane and 40% carbon dioxide. Next, the bio-gas feeds power generators with the total power of 1.8 MW. The power plant is expected to generate 12,508,300 kWh of energy for sale per year.

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Green energy from plants

Construction of a building for producing esters from plant oil together with production plant and accompanying devices Measure: 9.5 of OPI&E Beneficiary’s name: Przedsiębiorstwo Rolno-Spożywcze Lech Rutkowski 86-200 Chełmno, Kałdus 16 Voivodship: Kujawsko-Pomorskie Poviat: Chełmiński Total project value: PLN 20,571,231.79 Value of co-financing: PLN 11,466,636.59 Project implementation period: 2010-2011

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Przedsiębiorstwo Rolno-Spożywcze [Agri-Food Company] Lech Rutkowski has existed for over 20 years, and still keeps developing. The newest investments were possible due to the support from the European Funds. The project implemented in 2011 consisted in constructing a biocomponent production facility with the total output of 24,850 tons per year. The investment project included construction of a building for the production of esters from plant oil together with staff rooms, production plant and auxiliary devices. The facility houses a plant for producing methyl esters of higher fatty acids based on rape seed oil.

Storage tanks for methanol, glycerine and methyl-esters, as well as filling and pouring stations, have also been constructed. Methyl esters of fatty acids are used as a biocomponent for biofuels.

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Green energy in a great network

Conversion of the 110 kV line between Recław and Kamień Pomorski for the purpose of energy reception from renewable sources Measure: 9.6 of OPI&E

Beneficiary’s name: Enea Operator Sp. z o.o.

60-479 Poznań ul. Strzeszyńska 58 Voivodship: Zachodnio-Pomorskie Poviat: Kamień Pomorski Total project value: PLN 36,586,811.62 Value of co-financing: PLN 1,949,626.35 Project implementation period: 2009-2015

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The project, being implemented by Enea Operator Sp. z o.o. in north-western Poland, contributes to the realisation of the important tasks that lead to preparing the 110 kV transmission network to receiving the green electric energy supplied by the Śniatowo Power Plant. The investment project consists in dismantling the existing single-path 110 kV line, i.e. removing the existing foundations and pylons. The next stage is installation of a new double-path 110 kV line in place of the old one. The route of the new line will coincide with the route of the dismantled line, with small deviations. It is estimated that the length of the converted line will be 17.1 km. The new line will be set up using as many as 72 zinc-covered steel tube pylons in place of the old 84 gate-type reinforced concrete pylons. The new steel pylons will reduce the line’s impact on the natural environment, including the extremely valuable Natura 2000 sites across which runs a part of the line’s route.

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Steel foundations for energy

Construction of a wind tower production plant in post-shipyard brown areas in Gdynia Measure: 10.3 of OPI&E

Beneficiary’s name: Crist S.A. 80-867 Gdańsk ul. Swojska 12 Voivodship: Pomorskie Poviat: Gdynia Total project value: PLN 17,128,397.15 Value of co-financing: PLN 5,553,082.00 Project implementation period: 2011-2015

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The project being implemented in the north of Poland consists in constructing a plant for manufacturing offshore towers for wind power plants, turbines placed on those towers and foundations thereof. The structures manufactured there will be equipped with technological fittings, such as: doors, trap doors, stairs, etc. In addition, the head mechanism with 3 MW power generator, a lift and electrical fittings will be installed. The project includes preparation of a production hall, as well as purchase and installation of the necessary machinery and equipment for carrying out the production process. The implementation of this investment will allow for manufacturing 20 towers for offshore wind power plants per year, which is tantamount to processing about 15 thousand tons of steel.

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Prepared by: Euro Pilot sp. z o.o. ul. St. Konarskiego 3, 01-355 Warszawa tel./fax: +48 22 664 50 91 www.europilot.com.pl e-mail: biuro@europilot.com.pl

See changes in progress More information at: www.pois.gov.pl

MINISTRY OF ECONOMY Plac Trzech KrzyĹźy 3/5 00-507 Warszawa tel.: 22 693 50 00 tel.: +48 22 693 50 00 fax: +48 22 693 40 46 email: mg@mg.gov.pl