Biogas, ways of use- the case of Poland

Michał ĆwilVicepresident, Polish Economic Chamber of Renewable and Distributed Energy

Business Development Director, PGB Dystrybucja Sp. z o.o.

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Agenda

• Current situation of biogas– statistics and market figures– ways of use for energy purposes

• Framework conditions– market entry– policy on biogas– support schemes

• Barriers, bottlenecks 

• Selected thesis for debate

PIGEOR – who we are and what we do?

Consultingcompanies

Suppliers of equipments

Producers of green energy

Source: EurObserv’ER 2014

Biogas in Europe, 2013

Source: own estimates

based on URE, ARR

Landfill biogas: ca. 90 (55 MWe)

Sludge biogas: ca. 70 (35 MWe)

Agricultural biogas: ca. 35 (40 MWe);currently ca. 62 (75 MWe)

biogas production

Number of biogas plantsktoe

Biogas in Poland, 2013

Biogas for energy generation

electricityheat

fuel

gas distribution grid

Way of use – technically all possible, but..

New legal conditions – Act on RES

Biogas in electricity sector in comparison to RES

up to 200 kWSmall generation

facilities- registration URE/ARR

up to

40

kWMicro generation

facilities- registration OSD

> 200 kW

Commercial generation facilities – license URE/ registration ARR

Electricitygeneration frombiogas

Entry the market

Selected definitions from the act on RES

RES installation – set of equipments for electricity production and power outputconnected in one single connection point in the grid and the energy is generated fromone kind of renewable energy source (...)

Selected definitions from the act on RES

biogas – gas derived from biomas (...)

agricultural biogas – gas generated in a fermentation process from agro products and byproductes or from forest residues (...)

CAPEX OPEX

grants feed in tariffmicro

brown certificate

CHP yellow certificate

CHP violet certificate

preferential loans auction or+/- green

certificate

feed in tariff

feed in premium (OREO supplement)

oror

oror

++

≤ 1 MW e

>1 MW e

Support schemes: investement and operational

average prices in the wholesale market from the previous year - a guaranteed price for RES producers

The unit substitution fee - "determining" maximum price for the green certificate

2016 average from 2015 303.03 („frozen“ )

2015 163.58 303.03

2014 181.55 303.03

2013 201.36 297.35

2012 198.90 286.74

2011 195.32 274.92

2010 197.21 267.95

2009 155.40 258.89

2008 128.80 248.46

2007 119.70 242.40

2006 117.49 240.00*) Zmiany wprowadzone ustawą o OZE

Green certificates – „old” system to support

A collapse in the market:more green certificates than willing to buy

303,03

2014

303.03

2015...

inflation = 0 freeze

unit substitution fee unit price of green certificate in stock exchange transactions

Green certificates – „old” system to support

biogas

instability of the electricity market

Suppliers market

Threats related to substrates

Bargaining power of offtakers

Threat of new entrants

• Increased substrates demand• Blocking connections from other sources

oligopoly of energy

Energy crops Forest biomass

Agricultural residues Agri-food residues Utility residues

FoodAnimal feed

BiofuelsChemical products Materials

Convencional sources

Shale gas

Barriers & threats

• Energy from Biogas provides energy security– reduction in natural gas imports– stabilization parameters of the power network– distributed generation - security of supply for the local market– balancing energy in the system – storage

• Connected businesses– bio-fertilizer production– heat production available locally– waste utilization– a new market for agricultural products

Selected thesis for debate

Polska Grupa Biogazowa S.A.02-683 Warsaw, Gotarda 9phone: +48 22 548 49 00,

fax: +48 22 548 49 04, e-mail: biuro@pgbiogaz.pl

www.PolskaGrupaBiogazowa.pl

Polska Izba Gospodarcza Energetyki Odnawialnej i Rozproszonej02-683 Warsaw, Gotarda 9phone: +48 22 548 49 00,

fax: +48 22 548 49 04, e-mail: pigeor@pigeor.pl

www.pigeor.org.pl

Thank you for your attention