Winds of change

By Maria Kowalewska

As ecologists complain of the slow pace at which the European Union is adapting renewable energy sources, entrepreneurs are setting out ambitious plans to harness wind energy across the country's blustery plains. But structural rigidities could prevent the country from reaching its potential in this growing sector.

Experts estimate the country's wind potential to be comparable to that of Germany, which currently delivers one-third of the world's total wind energy. Most of Poland's wind energy potential lies in the northern and northeastern regions of the country.

There are already plans to tap the northeastern regions with the construction of two wind farms in the Suwałki region in 2004, a project with an estimated value of €46 million ($50 million).

Meanwhile in February, Polish-German developer Wind-pol announced it would construct a 52-megawatt wind power plant near Słupsk in northern Poland, an investment that is to cost up to €2 million (zł. 8.3 million), according to Wind-pol director Adam Stadnik.

Overall, this year seems promising for the wind energy sector, as the end of March marked the opening of Wolin North, a 15-windmill power plant located on the Baltic island of Wolin. The project had attracted the attention of Denmark's largest energy producer, Elsam, which acquired the company and together with Danish turbine producer Vestas supplied the energy park with the necessary technology. The investment, which cost nearly €28 million (zł. 120 million), has doubled the country's wind energy potential. Wolin North currently supplies energy to three power producers: Enea Group, ZE Łódź and ZE Łódź Teren.

Jacek Roman, a wind energy specialist at EPA, the developer of Wolin North, estimated that the investment could mark the opening of a new chapter in the country's wind energy sector.

"We foresee the preparation of further projects in this sector," he said. "(Wind energy) is likely to develop further in Poland unless there are changes in the legal system that worsen the current status quo."

White book

As the country progresses towards its membership in the European Union, there is increasing discussion on issues related to renewable energy sources. Before the country joins the Union, we are obliged to introduce EU Directive 2001/77/EC as legislation, which imposes certain responsibilities in the area of renewable energy sources on member states. According to provisions laid down in the "White Book" on energy sources that was signed by the EU countries in Madrid in 1994, 12% of all energy produced in the EU by 2010 must come from renewable sources.

"The adjustment to EU requirements will take place soon, because the government seems to be taking the need to comply seriously," said Maciej Bartmański, the president of the Polish Wind Energy Association. "It has already accepted the proposal that 7.5% of all electrical energy produced in Poland will come from renewable energy sources by 2010, although right now the level is at 2%."

Significant barriers

Yet, despite the country's apparent potential and the promising developments in the wind energy sector, as evidenced by the recent boom in wind power plant construction, many believe that bureaucracy and government regulations will continue to prevent it from becoming more widespread here.

According to Bartmański, the most significant barriers to utilizing more renewable energy are requirements in current energy legislation. As an example, he points to the requirement that power plants state the amount of energy they are to produce 48 hours in advance.

"One can make estimates on the scale of the entire country, but individual wind power plants cannot estimate with that much precision, and for that they can be penalized financially," he said.

EPA's Roman added that regulations and lack of publicity cause the power plants to buy renewable energy as required by law without being aware of the full spectrum of benefits that stem from purchasing "green" energy.

"The issue of purchasing so-called green energy as opposed to 'black' energy has not been well resolved," he said. "Many power plants that are forced by law to purchase green energy treat is as a necessary evil and do not really seem to know what to do with it. But the way in which power plants have been burdened with green energy purchases only deters them from the concept of wind power."

Lots of potential

Experts, such as Bartmański, believe there is potential to develop the wind energy sector in Poland since the meteorological potential and the technological capacity already exist.

"But the question lies in legislation regarding renewable energy and in creating the legal framework that would allow renewable energy investments to be returned within 10 years," he said.

The state of national electricity infrastructure is another stumbling block for many would-be operators of wind power plants. According to Roman, the costs of connecting to the national grid are a "huge burden on new investment, and not everyone can afford it."

"The insufficient development of energy infrastructure results in investors having to pay a lot for adjustments," Roman added. "Also the formal procedures are a barrier, particularly the spatial planning law. Procuring a construction permit for a wind energy plant can take more than a year."

Waldemar Hoff, a law professor at the Leon Koźmiński Academy of Entrepreneurship and Management and an energy sector specialist, also sees bureaucracy and spatial planning regulations as obstructive. He said that he believes the high costs associated with investing in wind energy could initially prevent it from becoming as widespread a source of energy here as elsewhere in Europe.

"The technical standards in wind energy in Poland are rising, but the expertise required as well as the cost of the technology often deter small entrepreneurs," Hoff said. "Our local capital is unable to adjust to such large financial requirements. It is imperative for the government to accept a number of facilitative bills regarding spatial planning and construction permits. I cannot foresee wind energy being particularly successful in the coming years as there are more profitable ways of investing in the energy sector."

The country is not alone in this quandary. The words of Giulio Vole, the World Wildlife Fund's climate policy officer, in summing the situation in the rest of Europe could just as aptly be applied to Poland: "The EU has committed to source a quarter of its power from renewable energies by 2010, but national action is not following."