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The conference – Will renewable energy sources replace coal?

How will the changes resulting from new trends in climate policy, the transformation of the energy sector and investments in renewable energy affect Poland? Will coal still be used as the main energy source, or rather new investment in renewable energy sources will be made – these were the topics discussed by the participants of the conference Will renewable energy sources replace coal. The competitiveness of renewable energy sources: its impact on the Polish energy sector and economy?, organised by Warsaw Institute for Economic Studies as well as Hertie School of Governance.

The meeting was opened by Waldemar Pawlak (The Prime Minister over the period 1993-1995). ‘Coal and renewable energy sources will coexist‘, he pointed out in his opening statement. The Prime Minister discussed the need for developing various energy sources, referring to this year’s problems in the supply of electricity. He indicated that, contrary to coal industry, employment in the RES sector can be long-term, and not only available for young people, as is the case of the mining industry. Moreover, photovoltaic sources emerge remarkably quickly – within a few months – and the price of PV energy continuously decreases. ‘That is why it is worth to move towards the Sun and encourage the development of renewable energy sources’, he concluded.

During the first panel, Moderator Marcin Popkiewicz began the session with a brief introduction on current environmental trends. Simultaneously, he indicated that we live in the time of energy revolution and all of us need to pass muster during this transformation. ‘We live in the last century of fossil fuels. What to replace them with? What’s next: crisis, going nuclear or RES?‘ He wondered. Simon Müller from the International Energy Agency stressed that most importantly, we need to start consistent policy changes, after all the fears of Poland are similar to the fears of numerous countries in the international arena, which had had a similar dilemma and have finally found the solution. Therefore there is a wide range of good practices available to us while enacting scenarios for Poland. Patrick Graichen, Director of Agora Energiewende, admitted that the problem of Germany – an ambitious pioneer of RES technology in Europe – is paying over the odds for technologies that are much cheaper today than at the time of redirecting their policies. Tomasz Chruszczow from Fundacja Polskie Centrum Zmian Klimatu i Zrównoważonego Rozwoju (Polish Climate Change and Sustainable Development Centre Foundation): All deliberation on energy changes should be made in the context of a growing human population. Meanwhile, Chmal Tomasz, White & Case LLP, pointed out the importance of carbon footprint – emission related not only to production in Poland, but also to consumption: The world do not shift away from coal at all, the carbon footprint can be found in our mobile phones, which are owned by each one of us. That is also the case with steel, cement or aluminium,’ he added. Professor Maciej Nowicki, a former Minister for the Environment, noticed that current Government’s efforts are not sufficient in any way, and some of their actions can be considered downright harmful, for example far-reaching strategic plans that are neither based on relevant data, nor justified by broader socio-political context. By 2050, RES are to constitute only 15% of all energy sources. It’s unbelievable. Will we truly drive the same cars as today in 35 years time?‘ He asked. Nowicki also emphasized that a favourable legal framework is needed for any change whatsoever.

The second panel was commenced by Justyna Piszczatowska with a question: ‘Will the falling RES’s prices affect Polish energy system?’ Michał Smyk, Director of the Strategy Department for PGE, stressed that RES still need support for these sources to be profitable. Currently, the strategy of PGE is to diversify energy sources, with the understanding that coal will be a part of it. ‘Large-scale energy industry and RES can cooperate quite well‘, assured Andrzej Ancygier, an expert of Hertie School of Governance. ‘In the EU perspective, certain concessions for the coal energy industry can be made. The EU will allow such modernization, if we take upon ourselves certain obligations. I do not foresee any rivalry between them‘, he assured. He also pointed out that RES’s development must not depend solely on costs, but it also should be influenced by the predictability of the market. Companies must be positive that RES will be a permanent strategic partner for the coal market. Therefore, RES’s research facilities must be created in Poland. We need to remember that Poland is not comprised of 4 energy groups and 100 thousands of miners alone. Włodzimierz Ehrenhalt, the President of Conerga, noted that all that is being developed gets cheaper in time, and for that reason he prognosed the prices of photovoltaics declining further. Maciej Bukowski called attention to the fact that we need a consistent policy – Poland is not a technological island, one cannot go against the current of world trends and global technological changes. If we insist on investing in spite of world trends, we will waste our public money, which is why it is only natural to expect pragmatism from everyone. One should always act with moderation. Let’s look ahead, and that entails also taking into consideration needs of a consumer and taxpayer‘, he summed up.

Warsaw Institute for Economic Studies and Hertie School of Governance organised a conference ‘Will renewable energy sources replace coal? Competitiveness of renewable energy sources: impact on the Polish energy sector and economy?‘ that took place on November 19 in National School of Public Administration.

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