Renewable energy
Use of renewable energy sources is necessary to stop changes of the climate and respond to growing demand for energy used in industry, taking into account that sources of non-renewable energy (organic fuels) are exhaustible. In addition, energy from renewable sources makes the industry more independent from imported energy, an
d therefore ensures security of energy supply. Therefore, the European Union launched the promotion of technologies used to generate energy from renewable sources.
Renewable energy sources include wind, water, biomass and solar energy. The Energy Council adopted the target share of electricity from renewable sources in the total consumption of electricity in the EU: from 14% in 1997 to 22% in 2010. Limits imposed on each Member State are stringent, and they are expected to remain so in the nearest future. Most Member States will find it difficult to reach adopted targets by 2010.
In Poland, the share of electricity from renewable sources must increase from less than 3% (currently) to 7.5% in 2010. The price of electricity from renewable sources is determined by the free market and is much higher than the price of electricity from traditional sources.
* Average price of renewable energy = PLN 285 per 1 MW
Source: Ordinance by the Minister, Statystyka Elektroenergetyki Polskiej 2003 (Statistics of the Polish Power Market 2003), Agencja Rynku Energii S.A. (the Energy Market Agency)
At present, the potential of the Polish market of energy from renewable sources in terms of nominal capacity (MW) is as follows:
- large hydro power plants – 53.5%
- small hydro power plants – 24%
- biomass burning – 17%
- biogas burning – 5%
- wind farms – 0.5%
In Poland, climatic conditions are not good enough to produce renewable solar energy, the number of hydro-power plants generating energy based on natural water flows is limited due to environmental restrictions, and the price of energy sources based on biogas burning is the highest of all renewable energy technologies. Therefore, it is expected that the renewable energy market in Poland will be based primarily on:
- production of wind energy,
- production of energy from biomass (co-)burning.
PEP S.A. is focusing on these two sources of renewable energy to develop its electricity production.