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Energy and Climate Policy in the EU – the question about the future of the coal

Poland’s perspective

Waldemar Łagoda

Department of Energy

Ministry of Energy of Poland

11.09.2018 r.

Polish Energy Policy - key directions of development

Optimal usage of internal energy sources

Enhancement of power infrastructure

Diversified fuel supply along with infrastructure development

Energy markets’ development

Nuclear energy implementation

RES development

Heat and CHP development

Improving energy efficiency of the economy

Present electrical energy generation mix of Poland, 2016

hard coal lignite crude oil natural gas RES other

Balance of primary energy 2017 (left) and primary energy demandaccording to reference scenario (right) [EC 2015] – Poland

50.1 46.5 43.334.1

25.5 21.6 20.2

26.627.1

27.4

27.8

28.027.9 27.9

16.2 18.3 20.5

22.0

24.325.1 24.5

0.0 0.0 0.05.9

8.9 11.9 14.8

12.3 14.1 15.5 16.4 19.8 21.4 22.3

0

20

40

60

80

100

120

2020 2025 2030 2035 2040 2045 2050

[Mtoe]

solid fuels crude oil natural gas nuclear electricity RES

0

10,000

20,000

30,000

40,000

50,000

60,000

2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040NP

Structure of installed capacity in Poland [MW]

New power plants – diesel engines or gas

turbines

Currently constructed (Płock, Żerań,

Stalowa Wola, Włocławek) CCGT

New CCGT (Combined Cycle Gas Turbine)

Currently constructed (Jaworzno,

Kozienice, Opole) hard coal power plants,

without Ostrołęka C

Existing and currently constructed (Turów)

lignite power plants.

Biogas and biomass stations

(two layers)

PV

New hard coal / lignite power plants,

nuclear power plant

Combined heat

and power

stations

Hydropower

Existing land-based

wind farm*

New wind

farms

* Assuming specified, finite lifetime

[MW]

New combined heat and power stations and

condensing units

DSR

Existing hard coal power plants

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040NP

Currently constructed (Płock, Żerań,

Stalowa Wola, Włocławek) CCGT

New CCGT plants

Currently constructed (Jaworzno,

Kozienice, Opole) hard coal power plants,

without Ostrołęka C

Existing (dotted layer) and constructed

(Turów – brown layer) lignite power plants.

Biogas and biomass stations

(two layers)

PV

New hard coal/lignite power plants, nuclear

power plant

Hydropower

New combined heat and power stations and

condensing units

Structure of energy generation in Poland [GWh]

Combined heat

and power

stations

Existing land-based

wind farm*

New wind

farms

[GWh]

* Assuming specified, finite lifetime

Existing hard coal power plants

77

Jaworzno pp. , 910 MWe, 45 % eff. commision in 2019;

Transmission system and the most recent coal power plants investments in Poland

Kozienice pp., 1075 MWe, eff. 45,6 %, commisioned in 2017;

Opole pp., unit 5 and 6, 900 MWeeach, 45,6 % eff. commision in 2019

Ostrołęka, unit C, pp., around 1000 MWe, commisionplanned for 2024; last coal fired pp. in Poland

Turów pp., newunit, 400 MWe, commission in 2020

Clean Energy for All Europeans – new direction of European Energy

and Climate Policy

from the year 2020 onwards

8

→

Aimed at enabling the EU to deliver on its Paris Agreement commitments, the 'Clean Energy for All Europeans' proposals are intended to help the EU energy sector become more stable, more competitive,and more sustainable, and fit for the 21st century.

So called „Winter package”, dated 2016

On 30 November 2016, the European Commission presented a new package of measures with the goal of providing the stable legislative framework needed to facilitate the clean energy transition – and thereby taking a significant step towards the creation of the Energy Union.

Three main goals of the new

climate and energy policy in EU

Putting energy efficiency first Achieving global leadership in renewable

energies Providing a fair deal for consumers

By embracing renewables and other new and innovative technologies they also have the potential to be good for the environment by delivering on new emissions targets for 2030.

It has the potential to be good for consumers, paving the way to lower consumer bills, a better quality of life at home and in the workplace, and more opportunities for individuals to produce their own clean energy.

By achieving these aims, this package can also maximise EU leadership in the clean energy transition and in the fight against climate change, and help non-EU countries achieve their policy goals.

Several legislative proposals –

Renewable Energy

Energy Efficiency

Governance of the Energy Union

Electricity Market Design

Rules for the regulator ACER

Energy Performance in Buildings

Regulation proposals- influence on the energy mix of Member States

• Obligation to increase RES share in final energy consumption

• Energy consumption controlled

• Targets covering all dimensions of Energy Union

• 550g CO2/kwh emissions limits in electricity generation as a requirement for prospect financialsupport

→

• „550g CO2/kwh emissions limits” –

12

Concept that is under discussion in the framework of Electricity Market Design Regulation

Poland is able to fulfill it when counted for the wholeelectricity generation system

In general, it may cause issues for all Member Stateswhich are still having significant share of old coaltechnologies in generation sector

What is needed in the lightof new policies cominginto power?

Clean Coal Technologies

Satisfy the need of cleaner energy from coal

Support renewal of old generation capacity fired by coal

Help to meet new targets of energy and climate policy on the EU level by using national assets and staying cost-effective

EU level targets and obligations based on „Winter Package” (to date) :

RES target – binding on EU level – 32% of final energy consumption

Energy efficiency – headline target on the EU level – 32,5% of primary energyconsumption

GHG reduction target – binding on the EU level – 40% comparing to the levelfrom 1990

Electricity interconnection target – 15% set on the EU level

15

Comprehensive reporting document covering all Energy Union dimensions

Integrated tool to make Energy Union come true by delivering itstargets in the perspective of 2030 and beyond

Obligation for each Member State of the European Union

Strong supervision of European Commision

Member states contributions to the overall goals based on the commitments

Member States are obliged to submit final version of the Plans by the 1st of January 2020

National Energy and Climate Plans– reporting document legally based on Governance regulation of the EU „Winter Package”

Key features:

National Energy and Climate Plans (NECP)- chief executive and reporting tool for 5 dimensions of European Energy Union

Energy security, solidarity and trust

Fully integratedeuropean

energy marketEnergy efficiencyto combat

energy demandincrease

„Decarbonisationof the economy”

Research, innovationand competitiveness

Decarbonization of the economy- key element in the Climate and energy policy of the European Union

Comprises of two main aspects:

GHG emissionsreduction

RES development

Non-ETS targets

ETS system

- Heat- Transport- Electricity

What Poland, EU Energy&Climate policy and Paris agreementhave in common?

Poland’s objectives for COP24 in Katowice 2018: o „Climate neutrality” instead of decarbonisationo Protection of the environment with attention to specifity of national economieso Maintaining Paris Agreement globalo Promotion of climate neutrality based on carbon absorption by forests (the concept of forest

carbon farms) and soils

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