U

NIVERSIDADE DA BEIRA INTERIOR

FACULDADE DE CIÊNCIAS SOCIAIS E HUMANAS

DEPARTAMENTO DE GESTÃO E ECONOMIA

ECONOMIA REGIONAL E URBANA

Docente Prof. Doutor A.Fernandes de Matos

Regional possibilities of Poland in renewal energy.

Magdalena Grabowska

Karolina Myzia

Monika Strugała

16.11.2011

Covilhã

Table of Contents

Introduction 3

1. Renewable energy 4

1.1 Mainstream forms of renewal energy in world: 5

1.1.1 Wind power 5

1.1.2 Hydropower 5

1.1.3 Solar energy 6

1.1.4 Biomass 7

1.1.5 Biofuel 7

1.1.6 Geothermal energy 8

1.2 Advantages and disadvantages of renewal energy. 9

1.2.1 Wind power, 9

1.2.2 Hydropower. 9

1.2.3 Solar energy, 9

1.2.4 Biomas (wood, straw, droppins), 10

1.2.5 Biofuel (biogas) 10

1.2.6 Geothermal energy. 11

1.3 The energy policy in EU. 11

2. Renewal energy in Poland. 13

2.1 The policy and instruments promotion 13

2.2 The past, future and structure. 14

2.2.1 Wind power, 14

2.2.2 Hydropower 15

2.2.3 Geothermal energy, 15

Conclusion 17

Bibliography: 18

Introduction

Since the 90s of the twentieth century, the EU has encouraged the use and production of renewable energy. Such a promotion leads to the restriction of fossil fuel consumption.
It also results in the diversification of used energy sources and contributes to the protection
of energy supply, and the development of new industries and technologies. In recent years,
a rapid development of techniques for collecting energy from renewable resources (wind, solar, biomass, geothermal) has been observed. However, the prices relating to traditional fossil fuels are getting higher. This stems from the fact that more and more people start paying attention to the environmental problems at the same time increasing their environmental awareness as well. On the other hand, the main reason for this may also be hidden in the policy and economy crisis, which is responsible for the immediate price rise. Luckily, the cost of devices used for renewable energy production are becoming cheaper. Thanks to this, is it more likely to find a group of potential buyers. Besides, there have been a lot of legislative changes to promote the use of renewable energy in many cases allowing one to apply
for preferential loans or grants to make the investment.

The aim of this project is to focus on the subject of the renewable energy, its definition and various types. The worksheet will also present the attitude of both EU and Poland towards the Renewable Energy Sources (RES).

1. Renewable energy

According to the definition the renewable energy is energy which comes from natural resources like sunlight, wind, rain, tides, and geothermal heat. They are all renewable, which means that can naturally replenish. It is assumed that about 16% of global final energy consumption comes from renewables, with 10% out of traditional biomass, which is primarily used for heating, and 3.4% from hydroelectricity. New renewables such as small hydro, modern biomass, wind, solar, geothermal, and biofuels have been estimated to be about 3% and they are increasing very fast. The share of renewables in electricity generation is around 19%, with 16% of global electricity coming from hydroelectricity and 3% from new renewable.¹

For instance, Brazil has one of the biggest renewable energy programs in the world, involving production of ethanol fuel from sugarcane, and ethanol now provides 18% of
the country's automotive fuel. Ethanol fuel is also widely available in the USA. Moreover, wind power is increasing at the rate of 30% per each year, with a worldwide capacity of 198 gigawatts (GW) in 2010. It is extensively used in Europe, Asia, and the United States. Furthermore, solar thermal power stations operate in the USA and Spain, and the largest of these is the 354 megawatt (MW) SEGS power plant in the Mojave Desert. In addition,
the world's largest geothermal power installation is the Geysers in California, with a rated capacity of 750 MW.

“While many renewable energy projects are large-scale, renewable technologies are also suited to rural and remote areas, where energy is often crucial in human development. As of 2011, small solar PV systems provide electricity to a few million households, and micro-hydro configured into mini-grids serves many more. Over 44 million households use biogas made in household-scale digesters for lighting and/or cooking, and more than 166 million households rely on a new generation of more-efficient biomass cookstoves. United Nations' Secretary-General Ban Ki-moon has said that renewable energy has the ability to lift the poorest nations to new levels of prosperity.^”2

All concerns about the climate change, in connection with high oil prices, peak oil,
and growing government support, help in a way to increase renewable energy legislation, incentives and what is more commercialization. No wonder that new government spending, regulation and policies facilitated the industry weather the global financial crisis better than many other sectors. According to a 2011 projection by the International Energy Agency, solar power generators will possibly generate the majority of the world’s electricity within 50 years, radically restricting the emissions of greenhouse gases that damage the environment.

1. Mainstream forms of renewal energy in world:

   1. Wind power

Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps
for water pumping or drainage, or sails to propel ships. Nowadays, the long-term technical potential of wind energy is supposed to be 40 times current electricity demand or five times total current global energy production. This might require wind turbines to be set up over huge areas, predominantly in regions of higher wind resources.

• Wind power usage

There are now many thousands of wind turbines with a total nameplate capacity
of 194,400 MW. The United States pioneered wind farms and led the world in installed capacity in the 1980s and into the 1990s. In 1997 German went beyond the U.S., but in 2008 the U.S. got back its position. In addition, China rapidly expanded its wind installations in the late 2000s and in 2010 to become the world leader.

Europe had 48% of the world total wind energy in 2009. In 2010, Spain achieved 42,976 GWh becoming the Europe's leading producer of wind energy. Nonetheless, Germany took the first place in Europe as far as installed capacity goes, with a total of 27,215 MW
at December 31, 2010. Wind power is approximately 21% of electricity use in Denmark,18% in Portugal, 16% in Spain, 14% in the Republic of Ireland, and 9% in Germany

2. Hydropower

Hydropower is power that is taken from the energy of falling water, which may be used for practical goals.

It is widely known that hydropower has found its use in irrigation and the operation
of different mechanical devices, such as watermills, sawmills, textile mills, dock cranes,
and domestic lifts, since the ancient times. Furthermore, the term defines the combination with the modern development of hydro-electric power, the energy of which can be easily passed on great distance between where it was produced to where it was consumed.

• Hydropower usage

Energy in water can be harnessed and used. As water is about 800 times denser than air, even a slow flow of water, or moderate sea swell can yield significant energy amounts.
There are quite a few forms of water power presently in broad usage, and other forms which are still in phases of development. The majority of hydropower is used mainly to produce electricity, but some are simply mechanical.

Broad categories include: riverine energy and hydropower. The first on relates
to Conventional hydroelectric, referring to hydroelectric dams, run-of-the-river hydroelectricity, which captures the kinetic energy in rivers or streams, without the use
of dams and finally, pumped-storage hydroelectricity which pump up water, and take advantage of its head to create in times of demand.

On the other hand, marine energy includes: marine current power, which captures
the kinetic energy from marine currents, osmotic power, which channels river water into
a container separated from sea water by a semi-permeable membrane, ocean thermal energy, which exploits the temperature difference between deep and shallow waters. There are also: tidal power, responsible for getting energy from the tides in horizontal direction and wave power, which uses ocean surface waves to generate power.

3. Solar energy

Solar energy is the energy which is a result from the sun activity, known as solar radiation. In this particular mainstream solar powered electrical generation relies on heat engines and photovoltaics. Some solar appliances includes cooling and space heating through solar architecture, solar cooking solar hot water, daylighting and high temperature process heat for industrial aims.

• Solar energy usage

Solar technologies are generally described as either passive solar or active solar.
This depends on the way they capture, change and allocate solar energy. Active solar techniques comprise the use of photovoltaic panels and solar thermal collectors to exploit
the energy. On the contrary, passive solar techniques concentrate on adjusting a building
to the sun, choosing materials with favorable thermal mass or light dispersing properties, and designing spaces that naturally circulate air.

4. Biomass

The definition of biomass states it as a plant material with the energy it contains coming from the sun. The energy plants capture takes place through the process
of photosynthesis, and when they are burnt, the sun's energy they have is released. In this way, biomass acts as a natural battery for accumulating solar energy. As long as biomass
is created endlessly, with only as much used as is grown, the battery will last for an indefinite period.

On the whole, there are two core approaches to using plants for energy production: growing plants specifically for energy use, and using the residues from plants that are used
for other things. However, they can be altered in various regions depending on climate, soils and geography.

• Biomass usage

Biomass can be used directly, or converted into other energy products such as biofuel.
As for the first one, biomass is plant matter used to produce electricity with steam turbines & gasifiers or generate heat, frequently by direct combustion, for instance: forest residues (such as dead trees, branches and tree stumps), yard clippings, wood chips and even municipal solid waste. In the second case, biomass includes plant or animal matter that are changed into fibers or other industrial chemicals, as well as biofuels. Industrial biomass can be obtained from many kinds of plants, such as miscanthus, switchgrass, hemp, corn, poplar, willow, sorghum, sugarcane, and a diversity of tree species, starting from eucalyptus to oil palm.

5. Biofuel

Biofuel is a kind of fuel whose energy is a consequence of biological carbon fixation. Biofuels are called fuels derived from biomass conversion, as well as solid biomass, liquid fuels and a range of biogases. Despite the fact that fossil fuels originate from ancient carbon fixation, they are not regarded as biofuels since they contain carbon that has been "out" of
the carbon cycle for a very long period of time. Biofuels are becoming more popular due
to: oil price spikes, fear of greenhouse gas emissions from fossil fuels, and support from government subsidies and the need for increased energy security.

• Biofuel usage

In 2010 worldwide biofuel production was estimated to be about 105 billion liters (28 billion gallons US), up 17% from 2009, and biofuels provided 2.7% of the world's fuels
for road transport, thanks to an immensely large amount of ethanol and biodiesel. What
is more, ethanol fuel production reached 86 billion liters (23 billion gallons US) worldwide
in 2010. The leaders were the United States and Brazil gaining 90% of global production.
On the other hand, the world's largest biodiesel producer is the European Union, accounting for 53% of all biodiesel production in 2010.

“As of 2011, mandates for blending biofuels exist in 31 countries at the national level
and in 29 states/provinces. According to the International Energy Agency, biofuels have
the potential to meet more than a quarter of world demand for transportation fuels by 2050.”³

6. Geothermal energy

Geothermal energy is energy which is obtained by two ways. Both are a result
of trapping the heat of the earth itself, but the first is from kilometers deep into the Earth's crust in volcanically active regions of the planet, and the second from shallow depths,
as in geothermal heat pumps in most locations of the globe.

The geothermal energy is derived thanks to three types of power plants, namely:
dry steam, flash, and binary. As for the dry steam plants, they take steam out of fractures
in the ground and use it straightly to drive a turbine that spins a generator. In relation to flash plants, they take hot water, usually at temperatures over 200 °C, out of the ground, and allows it to boil as it rises to the surface then separates the steam phase in steam/water separators
and then runs the steam through a turbine. Finally, in binary plants, the hot water flows through heat exchangers, boiling an organic fluid that spins the turbine. The condensed steam and remaining geothermal fluid from all three kinds of plants are injected back into the hot rock to pick up more heat.

• Geothermal energy usage

The most known geothermal power sources exist in some parts of the world such as Chile, Iceland, New Zealand, United States, the Philippines and Italy, which are geologically unstable. The two major regions for this in the United States are in northern California
or in the Yellowstone basin and. As fas as Europe goes, Iceland produced 170 MW geothermal power and heated 86% of all houses in the year 2000 through geothermal energy.

1.2 Advantages and disadvantages of renewal energy.

1.2.1 Wind power,

Advantages:

• does not cause pollution,

• does not contribute to greenhouse gas emissions,

• does not involve the exploitation of depleted resources.

Disavantages:

Wind turbines:

• Disfigure landscape,

• Emit a noise,

• A threat to birds.

1.2.2 Hydropower.

Advantages:

Production of electricity from water:

• does not contribute to greenhouse gas emissions,

• does not cause pollution,

• does not involve the generation of waste.

The advantage of hydropower is also possible to use the water for example, flood protection, fisheries and recreational purposes.

Disadvantages of hydropower:

Although hydropower is a renewable source of energy, hydroelectric power plants - especially the large ones - can have a negative impact on the environment:

• construction of a large dam is associated with considerable flooding areas

• under water may be found in agricultural areas, historical sites,

• animals and birds can lose their natural habitat.

1.2.3 Solar energy,

Advantages:

• does not contribute to greenhouse gas emissions,

• does not cause any pollution,

• does not involve the production of waste.

Disadvantages:

• daily and seasonal variability of solar radiation,

• low density of the daily flux of solar radiation energy, which even in equatorial regions is only 300 W/m2, while in Poland does not exceed 100 W/m2 (ie 1000 kWh/m2 per year),

• difficulties with storage - currently in use allow the hot water storage tanks store energy produced from solar thermal energy only for 1-2 days,

• high prices of equipment.

1.2.4 Biomas (wood, straw, droppins),

Advantages:

• zero balance of carbon dioxide emissions - the amount of carbon dioxide emitted during combustion is balanced by the amount of carbon absorbed by plants through photosynthesis,

• less than that of fossil fuel emissions of other pollutants,

• use of local energy sources,

• creating new jobs, especially in rural areas,

• development of wasteland and waste treatment.

Disadvantages:

• relatively low density material, making it difficult its transport, storage and dispensing,

• wide range of biomass moisture, impeding her preparation to use for energy purposes,

• less than that of fossil fuel energy value of raw material: to produce the amount of energy that is obtained from a ton of good quality coal need about 2 tons of wood or straw,

• Some wastes are only available seasonally.

5. Biofuel (biogas)

Advantages:

• clean pollution-free energy,

• reduction of methane emissions to the atmosphere (methane increases the greenhouse effect),

• decentralization of energy production,

• biogas can be used in developing countries with no natural resources.

Disadvantages:

• the need to comply with the strict requirements of the fermentation process,

• capital expenditures.

5. Geothermal energy.

The attractiveness of geothermal sources of evidence:

• availability, sources are not subject to fluctuations of weather and climate,

• sources are not undergoing depletion,

• indifference to the environment - geothermal energy does not release any harmful substances,

• geothermal technology devices do not occupy much space and do not affect the appearance of almost no landscaping.

Disadvantages:

• side effect of the use of geothermal energy is the danger of pollution of the atmosphere, as well as surface water and deep sea by harmful gases and minerals - one of them is hydrogen sulfide (H2S), which in high concentrations can be hazardous to human health,

• there is a risk of displacement of the geothermal resources, which for decades can "escape" from the place of operation,

• Convenient to use geothermal conditions occur in a few places.

2. The energy policy in EU.

Since about twenty years in discussions about environmental care, equitable distribution of wealth and better living conditions is used, the term "sustainable development". It includes not only ecological aspects but also economic and social changes that should always be considered together, taking into account the interdependence existing between them.
One of the key factors of sustainable development is energy. The method of obtaining
it affects virtually all aspects of social, economic and political rights, on the environment
and the associated climatic conditions, and often also on whether the different nations live together in peace or in conflict. Forecasts of the use of fuel and energy for the world
and for individual countries predict that coming decades will increase the proportion
of energy from renewable sources in the total amount of energy supplied. More and more
it becomes apparent that the rapid development of renewable energy is essential for
a sustainable energy economy.

Figure 1. Share in global energy production.

Source: Own calculations based on Eurostat.

The so-called. New Targets of the EU (3x20% +10%)

At the European Council Summit 8-9 March 2007. adopted an Action Plan
to integrate climate and energy policy of the Community, to limit the increase in global average temperature by more than 2 ° C above pre-industrial levels, and reduce the threat
of rising prices and limited availability of oil and gas.

Assumptions of the new Plan:

• Reducing greenhouse gas emissions by 2020. at least 20% compared to 1990.

• Rationalization of energy use and consequently reduce consumption by 20%.

• Increasing the share of electricity production from RES to 20% of total energy consumption in the EU average in 2020.

• Achieve at least 10% share of biofuels in transport fuel sales in 2020. in all Member States.⁴

2. Renewal energy in Poland.

In the Act - Energy Law defines renewable energy as a source in the processing of using wind, solar, geothermal, wave, tidal, river and fall biomass, biogas, landfill and biogas produced in the process of discharge or wastewater treatment or decomposition of plant
and animal remains.

An important factor influencing the development of renewable energy are also regulations for acquisition of investments in renewable energy grants and concessional loans, granted by the National Fund for Environmental Protection and Water Management.
An important element of support are also resources from EU funds spent on renewable energy development under the Operational Programme "Infrastructure and Environment"

2.1 The policy and instruments promotion

Strategy for renewable energy development:

The "Energy Policy of Poland until 2025" was adopted by the Council of Ministers on 4th January 2005.

This policy includes focuses on the promotion of the development of renewable energy, among other areas.

It suggests that the share of electricity from renewable sources in the country's total gross consumption of electricity should attain 7.5% in 2010. This is in line with the indicative quantitative objective stipulated for Poland in Directive 2001/77/EC of 27th September 2001 on the promotion of electricity produced from renewable energy sources. Poland's energy policy directs that this target should be carried out in such a way as to ensure that
the utilisation of individual kinds of renewable energy sources favours competition through promoting the most economically-effective sources and does not to lead to an excessive increase in energy costs for consumers.

Legal and financial instruments:

• Separation of the physical characteristics of the ecological characteristics of renewable energy.

• The obligation to purchase energy from renewable sources.

• The obligation to obtain and submit to the redemption of certificates of origin of RES
  for electricity retailers.

• The replacement fee.

• The penalty for failure of duty.

• Relief of 50% in the costs for joining the RES.

• Separate rules for balancing energy from wind turbines.

• Exemptions from fees for obtaining licenses and for obtaining and recording
  of certificates of origin for the sources of <5 MW.

• Tax credits.

Institutions providing investment aid for renewables.

• The National Fund for Environmental Protection and Water Management.

• The Province Funds for Environmental Protection and Water Management.

• Bank of Environmental Protection.

• Foundation Ekofundusz.

• Commercial Banks

Coordination of activities:

The tasks associated with RES are implemented by:

• Ministry of Environment (coordination of RES, climate change, Nature 2000, EIA, hydropower, geothermal, biomass, forest).

• Ministry of Economy (the efficiency of energy used, the RES in the electricity
  and district heating, biofuels).

• Ministry of Agriculture and Rural Development (production of biomass and bio fuels).

• Minister of Construction (thermo, architecture, passive).

• The Ministry of Maritime Economy (wind farms at sea).

2. The past, future and structure.

2.2.1 Wind power,

Wind energy is stochastic and uncontrollable and those features make difficult
the development of wind power plants. The most favourable conditions for wind energy in Poland are in the northern and eastern parts of the country

In Poland, the average wind speed is 2.8 m / s in summer and 3.8 m / s in winter, only in few places exceeds the seasonally 5m/sek wind speed, which is the absolute minimum
to power wind turbines. The consequence of low wind is that wind turbine built in Denmark will provide 100 kW, while the same power plant built in the region of Szczecin will provide only 17.3 kW. Only the Baltic Sea near Darłowo, Puck and Kolobrzeg, in the vicinity
of Suwalki and Podkarpacie can talk about favorable conditions in terms of location of wind farms. There are also windmills have become part of the landscape. Experts from
the Technical University of Szczecin even claim that the role of wind energy in the energy balance is Polish and will continue to slow. The problem of silence, the wind also affects many of German wind farms localized along the Polish border. 16,000 wind turbines installed in Germany, which could produce up to 15% of electricity demand, but problems
with the phenomenon of silence the wind causes, production only 3%.

2.2.2 Hydropower

Polish hydropower resources are estimated at 13.7 TWh per year, of which 45.3%
is the biggest Poland's Vistula River. 43.6% of the Vistula and the Oder, 9.8% for the same Oder. The remaining 1.8% of the rivers of Pomerania. This is a very large and currently unused potential. Before Second World War hydroelectric power stations on the rivers
of Pomerania feeding electricity to a sea port in Gdynia, Gdansk Kartuzom and residents
and the surrounding area.

Currently, Poland is using its hydroelectric resources in only 12%, which represents 7.3% of installed capacity in the national energy system. Unsurpassed leader and benchmark in this area is Norway, obtained from the energy drop of water

Despite of big hydropower stations there exist in Poland about 400 small and very small hydropower stations, which produce 510 – 616 GW•h electricity.

Building new big hydropower plants are not expected in the nearest future,
as the potential of waters that is suitable for big power plants have already been used up. Still there is a chance for small hyropower stations development.

2.2.3 Geothermal energy,

Poland’s potential and reserves of geothermal energy are relatively high.
The perspective reserves of geothermal waters occur in many regions of Poland(almost 80%). Majority of the water is characterised by low enthalpy and high mineralization.
Those circumstances make utilisation of the waters as energy source difficult. Nevertheless there are many local conditions that cause the development of geothermal energy probable and effective. These are:

• significant reserves of geothermal heat; in spite of their low temperature they are suitable for heat pumps,

• facility for cogeneration of geothermal energy with energy of natural gas,

• ecological constrains; use of geothermal energy decreases atmosphere pollution,

• possibility to adopt for geothermal installation the old, abandoned test well
  and exploratory bore-holes,

• possibility to adopt for geothermal installation boreholes being earlier the exploitation boreholes for exploitation oil and natural gas.

• The barriers that restrict further development of geothermal energy use are:

• lack of coherent policy of government concerning use of geothermal waters,

• unfavourable and insufficient law, i.e. high fees and taxes put on geothermal installations (fee for geological information, fee for exploitation of geothermal water).

So far on Polish territory are four geothermal heating plants:

1. Banska Nizna (4.5 MJ / s, 70 MJ / s),

2. Pyrzyce (15 MJ / s, the target 50 MJ / s),

3. Mszczonów (7.3 MJ / s),

4. Uniejów (2.6 MJ / s).

Figure 2. Share of renewable raw materials in the energy generated in Poland in 2009.

Source: Own calculations.

Conclusion

1. The EU Climate Package of January 2008 is good for Poland; it is ambitious yet fully, achievable; however, it requires departure from current energy policy preserving technical, structures and building on them conservative organisational structures, which stifle innovation.

2. The Polish national potential of renewable energy sources permits the contribution
of renewable energy to the final energy consumption balance in Poland at the level exceeding 21 % in 2020 and nearly 60 % in 2050.

3. The 15% contribution of renewable energy to energy consumption in Poland in 2020 means the need for new projects at the level of (maximum) 10 GW of electricity, 30 GW of heat and 50 PJ/year production capacity in biofuels.

Problems: access to capital and limited supply of modern technology.

4. The key issue for the contribution of renewable energy in 2020 is the use of the potential
of wind power and energy crops, the sources which are most severely affected
by environment al and spatial restrictions.

5. Local (for heat and cold production) use of solar and geothermal energy and utilisation
of dry and solid biomass waste is the least controversial. The related technologies will be developed in conjunction with action aiming at increased energy efficiency at end users’.

6. Biogas production (first from waste, then from special crops) is an exceptionally advantageous option for cogeneration from the environmental and energy point of view.

7. Based on the development of renewable technologies by 2020, achievable in the long-term perspective (2050) is an approximately 55 % contribution of RES to the primary energy balance and 80 % to electricity consumption as well as the reduction of CO2 emissions
from 10 t/ca to … ?

Bibliography:

Books:

• Odnawialne źródła energii : wybrane zagadnienia / Tytko Ryszard. - Wyd.3 uzupeł. - Warszawa : OWG, 2009.

• Alternative energy systems : design and analysis with induction generators / Simoes Godoy M., Farret Felix A. - 2nd ed. - Boca Raton : CRC Press, 2008.

• Renewable energy in power systems / Freris Leon, Infield David. - Chichester : John Wiley & Sons, 2008.

Website:

• http://energiaodnawialna.net/

• http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/themes

• http://fluid.pl/relacje-inwestorskie/opis-rynku/

Reports:

• Energy, transport and environment indicators – eurostat pocketbooks 2011

Other materials:

• Climate Change, May 2010, Author Lectures of prof. Jerzy Żuchowski.

1^ Odnawialne źródła energii : wybrane zagadnienia / Tytko Ryszard. - Wyd.3 uzupeł. - Warszawa : OWG, 2009.

2^ http://en.wikipedia.org/wiki/Renewable_energy

3^ http://en.wikipedia.org/wiki/Biofuel

4^ Climate Change, May 2010, Author Lectures of prof. Jerzy Żuchowski.