On October 24, 2014, the European Council established the Modernization Fund (MF) for years 2021–2030 supplied with revenue from the sale of 2% of the total pool of CO2 emission allowances. The instrument is to support the modernization of the power system and the improvement of energy efficiency in EU Member States, where GDP per capita in 2013 was lower than 60% of the EU average (in nominal terms).
The analysis conducted by the Forum for Energy Analysis focuses on the issue of how to make optimum use of the MF in Poland, taking into consideration the challenges and priorities of the Polish energy policy by 2030.
Key conclusions:
- The Modernization Fund will receive a relatively small capital injection in the amount of EUR 2–5 billion.
- The freedom of its development is limited by the conclusions of the European council of October 24, 2014.
- The Fund shall be allocated to urgent and important tasks that have no access to other sources of financing.
- We recommend that the Modernization Fund be used in the following areas:
- retrofitting of existing single-family buildings with thermal insulation,
- heating sector modernisation – both heat generation and networks,
- development of low-emission distributed generation.
- The sources from the Fund should:
- stimulate private resources,
- close the financing gap,
- support integrated projects.
- The Fund should be used in coordination with other domestic economic policy tools.
If you wish to become acquainted with our analysis, please visit www.fae.org.pl
The Forum for Energy Analysis is a non-profit initiative established by Ms Joanna Maćkowiak-Pandera, PhD (project leader, Agora Energiewende), Mr Jan Rączka, PhD (Regulatory Assistance Project) and Mr Maciej Bukowski, PhD (Warsaw Institute for Economic Studies). The aim of the project is to develop a comprehensive and consistent vision of a cost-effective transformation of the electricity market.
