Poland to cut renewables subsidies

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Poland’s intention to implement a feed-in tariff has been put on the back burner with new plans to cut subsidies for solar PV.

Deputy economy minister Jerzy Pietrewicz has said he is updating proposals to set out a renewable energy draft law in October this year with a particular emphasis on wind and biomass while halting plans for solar PV.

“We don’t plan a retreat from support, but we see that progress in technology allows us to reduce rates proposed earlier,” Pietrewicz said in his first interview on renewables since taking office in February, reports Bloomberg.

Proposals put forward in October 2012 were in reaction to calls from the European Union for the country to adopt renewables targets by 2020. The government aims to expand its renewable energy capacity from 2% to 15% by 2020.

As it currently stands, Poland will offer FiTs to PV projects up to 100kW and green certificates for installations between 100kW and 2MW. The FiT offered is US$0.337 for 15 years, which is higher than that in Germany.

However, the government claims the cost of state support for renewables will further increase the country’s budget deficit. The government estimates that state support for renewables will rise to 10.8 billion zloty (US$3.4 billion) in 2020 from 5.5 billion zloty in 2014. The government budget deficit in the first quarter widened to 25 billion zloty, the most in a decade, states Bloomberg.

A final draft is expected by Pietrewicz this half of 2013 which is expected to lock in payments for smaller projects, establish a tradable green energy certificate system and set up a stabilisation fund to maintain the value of those securities.
 

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