cleantech fall 2012

USA $18 - $18CAD - POLAND 50 PLN + VAT - EU €12 - UK £11

WindGrid analysis

GREEN BUILDINGSPECIAL REPORT

InterviewMinister Korolec

Q4 2012

Warsaw’s real estate leaders

are building the city anew, filling

it with green buildings

Cleantech

4 | CLE ANTECH |Q3 20124 | CLE ANTECH |Q4 2012

From left WALDEMAR

OLBRYK, MANAGING DIRECTOR,

Skanska & JAN MOTZ,

PRESIDENT,Grupa Capital Park

Below FILIP consults with AGNES VORBRODT, PLGBC over preliminary proofs for the shoot

Above center PETER OBERNHUBER, BOARD MEMBER, UBM & above right WOJCIECH

KOŚĆ, EDITOR, Cleantech Poland

JEROEN VAN DER TOOLEN, MANAGING DIRECTOR, Ghelamco

Above HANS VAN DE SANDEN, BREEAM COORDINATOR, Grontmij

From left JEROEN VAN DER TOOLEN, MANAGING DIRECTOR, Ghelamco & JOHN DUCKWORTH, MANAGING DIRECTOR, JLL

At leftPATRICK DELCOL, COUNTRY MANAGER, DTZ

At bottom leftKATARZYNA SZUMAŃSKA-KALISZ, MARKETING, UBM

W W W.CLE ANTECHPOL AND.COM | 5

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EN

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C O V E R P R O J E C T B Y F I L I P Z O Ł Y N S K I P H O T O G R A P H Y B Y K . M . R A T S C H K A | M . O S T R O W S K I

The making of THE COVER

Over the last five years, green building has gone from a fringe choice to a mainstream trend. Who is responsible for this huge shift in thinking? We surveyed the market

and found a few leaders who are marrying environment to business and getting some decent results.


FILIP shows the original “lunch atop a skyscraper” image shot in New York in the 1930s which served as inspiration

AGNES VORBRODT, CEO

PLGBC, has led the development of a green build-ing professionals’

network

FILIP consults with BARTŁOMIEJ KISIELEWSKI, PARTNER, Horizone Studio

FILIP ŻOŁYŃSKI, PHOTOGRAPHER, frames each of the participants in the studio shoot

Left, MICHAL ŚWIERCZYŃSKI, BOARD MEMBER, Polnord

PETER HARTMANN,

BOARD MEMBER,

PORR

Above, FILIP giving instructions

on the set

Above right PARKER SNYDER, PUBLISHER, Cleantech Poland, talking to participants

EWA ŁYDKOWSKA, MARKETING, Swede Center, speaks to ROGER ANDERSSON, COUNTRY MANAGER, Swede Center

.

6 | CLE ANTECH |Q4 2012

Dear Reader,

When I settled in Warsaw four years ago, there was no national stadium, no A2 highway, no hiking trail along the east bank of the Vistula, no renovated train station, no Copernicus center, and no modernized main street. In the last five years, Warsaw has grown up.

The city is confident for the first time in its post war history, and it knows how to market this confidence to foreigners. If Warsaw wins its bid to host the UNFCC’s Green Climate Fund, a huge number of climate stakeholders will work out of the Palace of Culture.

But that strong, confident vibe is missing in Poland’s cleantech markets. Aside from wind, development in other sectors has been lackluster. This could be excusable in a coal-dependent country 20 years out of communism. But Poland is a member of the European Union, and each year receives a few billion euros in structural and regional development funds. Why does so little get spent on renewables?

The pace of cleantech development could change if the proposed renewable energy law comes into effect. Then investors could gain clarity on the IRR for agricultural biogas or watch the atrociously large subsidy for biomass co-firing get phased out.

Our next issue will zero in on a possible solar PV boom. We’ll lead with the best in green lifestyles - food, fashion and four-wheelers.

Regards,Parker Snyder

EDITOR IN CHIEFWOJCIECH KOSC

PUBLISHER PARKER SNYDER

ART DIRECTIONPASCAL GUITER

PRINCIPAL ANALYSTTOBIASZ ADAMCZEWSKI

WRITERSHUNTER DIAMOND,

MACIEJ GOMÓŁK A , JO HARPER, ADAM MOTEK, ALICE TRUDELLE

SENIOR ADVISERPETER RICHARDS

PHOTOGRAPHYANNA MATUSZNA , MAREK OSTROWSKI,

KR Z YSZTOF M . R ATSCHK A SZ YMON SZCZESNIAK, FILIP ZOŁYNSKI

PUBLISHED BY

CLEANTECH POL AND LLCUL PUSTELNICK A 48/22

04-138 WARSAW, POL AND

EDITORIAL CONTACTWOJCIECH@CLEANTECHPOL AND.COM

(+48) 602 458 099

ADVERTISING CONTACTPARKER@CLEANTECHPOL AND.COM

(+48) 517 469 881

GENERAL REQUESTSINFO@CLEANTECHPOL AND.COM

GRAPHIC DESIGNERPAIGE WEIR

PRINTERDRUK ARNIA BELTR ANI

isconfidentfor the

Warsaw Cleantech

.

first time

.

CO

NT

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TS


p / 1 8NOT SO QUIET ON THE FINANCE FRONT

p / 2 1 Projects Up For Grabs

p / 2 4 WIND AND THE GRID: BLOWING IT!

p / 2 9German offshore wind p / 3 0A solar PV boom?

CONTENTS

p / 3 2 SOLAR MAGICIAN

p / 3 4 Chimney Sweepers

p / 3 7

GREEN BUILDING SPECIALp / 5 8Last hope for CCS

p / 6 0Fiten: Fit for fundraising

p / 6 2Photo essay

p / 6 4IT’S ELECTRIC (BOOGIE WOOGIE WOOGIE)

p / 6 8LEZs: Entry forbidden

p / 7 0CATCHING UP WITH EUROPE

p / 7 4Energy Consultants Ranking

p / 7 6 EU ETS: The fix

p / 7 8 MARCIN KOROLEC: FULL OF DOUBTS

p / 8 0Jobs: A safe bet

p / 8 2 Human Resources Ranking

p / 8 8 Portrait

62

78

� Wind power is the most dynamic RES sector in Poland. However, this trend might not continue. Grid connection problems and a lack of legislative stability may be to blame for a flattening over the next two years (see p. 24).

-1-I IND C A T R SO

Our indicators are important metrics to measure the health of the cleantech economy. Among those we think are most important, we chart the price of a green certificate (GC) and the weekly average price for electricity in 2012. The low price of GCs over the last quarter is a cause for worry, especially for independent investors. This should, however, be a short term problem: forthcoming regulations propose an increase in the renewables goal from 10.4 (in 2011 and 2012) to 12 percent in 2013 and the newly drafted RES law proposes to cut support for co-firing by a third. It also includes a safety mechanism should the GC price fall below 75 percent of the substitute fee.

0

1,250

2,500

2006 Q2 2012

CONNECTED RES POWERMW

GREEN CERTIFICATE (PLN) PER MWH

MOVING AVG. WEEKLY PRICE(PLN) PER MWH

POLISH ZLOTY (PLN)

SOU

RCE:

URE

T O B I A S Z A D A M C Z E W S K I P R I N C I P A L A N A L Y S T

A N A LY S T ' S V I E WR E S D E V E L O P M E N T

C E R T I F I C A T E O F O R I G I N

P R I C E O F E L E C T R I C I T Y

C A R B O N P R I C E C U R R E N C Y R A T E S

� The recent dip to 236 PLN/MWh (€58/MWh) is caused by oversupply of certificates of origin on the market. Co-firing and a low target for renewable power production for 2012 may be the cause of this price signal.

235

260

286

Aug 2011

SOU

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PO

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PO

WER

EXC

HAN

GE284

248

277

236

� The average price of electricity sold on the competitive market (over one year) becomes the guaranteed price for renewable energy. Most electricity generated in Poland is sold through the Polish Power Exchange (POLPX S.A.)

150

275

300

Jan 2012 April 2012

SOU

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GE296

150

210

� The Q2 falling price of EUAs was brought upon by an oversupply. This could be a sign to decision makers, should they want to boost the price of allowances.

� PLN/USD and PLN/EUR exchange rates rise and fall in tandem, as both are reserve currencies for global markets. On August 17th ¤1.00 was equal to $ 1.24.

€2.50 3.00

€6.25 3.80

€10.00 4.60

17 Jan 16 Jan 07 May17 Aug 17 Aug

SOU

RCE:

CO

NSU

S

SOU

RCE:

NBP

4.10

3.10

2007 2008 2009 2010 2011

Wind SolarBiogasBiomassHydro

2,189

957

Feb 2012 Aug 2012May 2012Nov 2011

July 2012

TRADEABLE FUTURES€ / TON OF CO2

€8.30

€4.10€2.91

€7.68

€9.50

€5.00

CERsEUAs

08 May

4.40

3.60

4.07

3.29

$ USD€ EUR

T H E B A S I C S

Minimum guaranteed price for electricity from RES in 2012: 198.90 PLN/MWh (€48 /MWh)

Substitute fee for lack of ‘green certificate’ in 2012: 286.74 PLN/MWh (€70 / MWh)

RES goal for 2012: 10.4%


-2-I IND C A T R SO

PRICE ON PUBLIC EXCHANGEWSE: POLISH ZŁOTY (PLN) FSE: € EURO

DRAFT RES LAWCOEFFICIENT

ENEA STOCK PRICE FROM JAN-AUG 2012 IN PLN (WSE)

RWE STOCK PRICE FROM JAN-AUG 2012 IN EURO (FSE)

PGE STOCK PRICE FROM JAN-AUG 2012 IN PLN (WSE)

TAURON STOCK PRICE FROM JAN-AUG 2012 IN PLN (WSE)

P R O P O S E D C O E F F I C I E N T S

P O L I S H U T I L I T I E S

� Polish utilities are key players in the country's energy investment. Changes in their market value will partly reflect the challenges of conforming to the forthcoming 3rd phase of the EU ETS and the pending draft RES law.

€21

14

4

17

€30

16.5

4.7

19.5

€38

19

5.6

22

Jan 2012 May 2012 Aug 2012

SOU

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FRA

NKF

URT

STO

CK

EXC

HAN

GE

SOU

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WAR

SAW

STO

CK

EXC

HAN

GE

SOU

RCE:

WAR

SAW

STO

CK

EXC

HAN

GE

SOU

RCE:

WAR

SAW

STO

CK

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HAN

GE

21

18

34

16.5

17

Biogas (agriculture) 200-500kW 1,50 1,50 1,475 1,45 1,42

Biogas (agriculture) 500-1000kW 1,45 1,45 1,425 1,40 1,375

Biogas (agriculture) >1000kW 1,40 1,40 1,375 1,35 1,325

Biogas (landfill) >200kW 1,10 1,10 1,06 1,025 1,00

Biogas (sewage treatment) >200kW 0,75 0,75 0,725 0,70 0,625

Bioliquids 1,15 1,15 1,125 1,10 1,07

Biomass (or hybrid system) <10MW 1,30 1,30 1,25 1,225 1,20

Biomass (or hybrid system) >10MW 0,95 0,95 0,925 0,90 0,875

Biomass (or hybrid system) with CHP <10MW 1,70 1,70 1,65 1,625 1,60

Biomass (or hybrid system) with CHP >10MW 1,15 1,15 1,125 1,10 1,075

Biomass (co-firing) 0,30 0,30 0,25 0,20 0,15

Geothermal 1,20 1,20 1,20 1,20 1,20

Hydro 75-1000kW 1,60 1,60 1,575 1,55 1,525

Hydro 1-5MW 1,70 1,70 1,675 1,65 1,625

Hydro 5-20MW 2,00 2,00 1,975 1,95 1,925

Hydro >20MW 2,30 2,30 2,25 2,20 2,15

Solar >100kW 2,85 2,85 2,70 2,55 2,40

Wind (onshore) 200-500kW 1,20 1,20 1,175 1,15 1,125

Wind (onshore) >500kW 0,90 0,90 0,875 0,85 0,825

Wind (offshore) 1,80 1,80 1,80 1,80 1,80

SectorCoefficients by years2013 2014 2015 2016 2017

0,90

2,85

0,30

� The 10 percent cut in support of wind power comes as no surprise to the sector. Onshore wind has developed dynamically over the past six years in Poland. Now it's time for offshore. More on wind, p. 24-29.

� Co-firing biomass with coal or lignite got a big cut in support in the new draft of the forthcoming renewable energy law. The proposed coefficient is a strong blow to Polish utilities, who may lobby to get this number changed.

� This is a number that makes the solar PV market salivate. It’s not yet a dream come true, but enough to generate serious interest from PV developers. For more information on the PV market and its prospects, see “A solar PV boom?” on p. 30-31.

Jan 2012 May 2012 Aug 2012

Jan 2012 May 2012 Aug 2012Aug 2011 Feb 2012 Aug 2012

16

37 5.4

4.2

4.7

20

22


The American Chamber of Commerce (AmCham) is a business organization that serves and promotes its member companies. AmCham fosters positive relationships with the government and promotes the free market spirit for the benefit of business. Ul. Emilii Plater 53, 00-113 Warsawwww.amcham.com.pl

Cleantech Poland (CTP) is a media and consultancy company for sustainable business. CTP connects capital to technology in Poland’s conversion to a low carbon economy. The Cleantech magazine is part of a portfolio which includes the Shale Gas Investment Guide/Poland. Ul Pustelnicka 48/22 04-138 Warsaw [email protected]

PwCPwC provides cleantech companies with services in assurance, advisory and tax & legal. A global services company, PwC has been in Poland for 20 years. Locally, there are 46 partners and more than half of employees are female. Al. Armii Ludowej 14, 00-638, Warsawwww.pwc.pl

Partners To become a partner for the magazine, please contact the publisher

nA Aldesa (p. 15), Allen & Overy (p. 22), Articulus (p. 73), Astaldi (p. 72), nB BBI Development (p. 42, 49), Biogal (p. 17), BNP Paribas (p. 65), BOŚ (p. 18), Boston Consult-ing Group (p. 39), Budimex (p. 72), nC CA Immo (p. 41), Capital Park (p. 4, 39, 45, 52, 55), CBRE (p. 40, 42), CESPA (p. 72), Citroën (p. 66), Colliers (p. 56), CSM (p. 88), nD Dalkia Polska (p. 73), Darby Private Equity (p. 60), Deloitte (p. 22), demosEUROPA (p. 35), DMS (p. 22, 31), DTZ (p. 4, 37, 42), nE E.ON (p. 29, 73), e+ (p. 65), EDF (p. 34), Elektrobudowa (p. 80), Enea (p. 22, 28), Energa (p. 22, 28), Energy Invest Group (p. 14), Environmental Investment Partners (p. 21), Erbud (p. 45, 72), Esperotia (p. 15), European Investment Bank (p. 29), EWE (p. 29), nF Fisia Babcock Environment (p. 73), Fiten (p. 60), Fluor (p. 80), Fortum (p. 16), Frost & Sullivan

(p. 65), nG Gamesa (p. 17, 22), Gazeley (p. 50), GDF Suez (p. 73), GE Capital Real Estate (p. 42), Green Bear Corp (p. 27), Greenpeace (p. 80), Gros-Pol Plus (p. 72), nH H. Cegielski-Poznań (p. 72), H&M (p. 42), Hays (p. 80), Helaba (p. 54), nI Iberdrola (p. 22), IEO (p. 34, 80), IK Investment Partners (p. 60), ILF Polska (p. 16), Integral Engineering und Umwelt-technik (p. 72), Introl (p. 72), IVG Develop-ment (p. 42), nJ Jones Lang LaSalle (p. 37, 41, 51, 54), nK Keppel Seghers (p. 72), KGHM (p. 13), Krakowski Holding Komunalny (p. 72), Kulczyk Investments (p. 29), nM MCI Management (p. 60), MGPA (p. 40), Mistubi-shi (p. 66), Mostostal (p. 72), nN Neinver (p. 42), NewConnect (p. 15), Noble Securities (p. 60), Noerr (p. 63), nO Opel (p. 66), nP PBG (p. 72), Pentagram Architekci (p. 13), Peugeot (p. 66), PGE (p. 16, 17, 22, 29, 58),

PKN Orlen (p. 29), PKO BP (p. 28), PointPark Properties (p. 12, 50), Polish Energy Partners (p. 22), Posco (p. 72), Pradera Europe (p. 42), Pravda Capital (p. 76), ProNatura (p. 72), PSE Operator (p. 26), PSEW (p. 26), nR Rafako (p. 72), Raiffeisen (p. 28), Remondis Waste to Energy (p. 73), Renault (p. 65), RICS (p. 56), RWE (p. 17, 28, 66),nS Samar (p. 65), Siłownie Wiatrowe (p. 14, 28), Sita-Zielona Energia (p. 73), Skanska (p. 4, 13, 40, 54), nT Tauron (p. 15, 22, 28), Tennet (p. 29), Termomecca-nica Ecologia (p. 72), TNS Polska (p. 65), TPA Horwath (p. 26), nU UBM (p. 4, 37, 55), nV Vattenfall (p. 28, 29, 58), Veturilo (p. 16, 63), Vinci Environnement (p. 72), nW Warbud (p. 72), Wardynski & Partners (p. 23), Warsaw Stock Exchange (p. 15, 60), Wheelabrator (p. 73), WSP Environment & Energy (p. 50), nZ Zara (p. 42), Zielone Mazowsze (p. 68).

COMPANY INDEX Can't remember where a company was mentioned? Here's our index to help you out.

SSWSSW provides comprehensive tax and legal advisory services. SSW, whose main practice areas are energy and natural resources, counts the world’s largest energy companies as clients. Rondo ONZ 1, 00-124 Warsawwww.ssw.pl



� Weltec Biopower started to build a 2.4 MW biogas plant in Darżyno, Pomerania, Poland. At the plant site 80 km west of Gdańsk, the substrates will be fed into the four 4,438 cubic metres stainless-steel fermenters via four storage tanks and a 50 cubic metres dosing feeder starting from summer 2013. Apart from maize and liquid manure, which will be sup-plied by farmers from the vicinity, the operator NEWD will also ferment potato waste from a chips manufacturer. Poland‘s agricultural area amounts to about 18.5 million ha, about 1.5 million ha more than in Germany. Agricultural plants number about two million. Especially liquid manure from cattle, pigs, and poultry as well as renewable raw materials are readily available as substrate for biogas plants.

BriefsMINI-INTERVIEW WITHCRAIG MAGUIRE

Weltec Biopower kicks off 2.4 MW biogas plant

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Country manager Poland, PointPark Properties, the first industrial property developer in Poland to

certify a project, at the BREEAM Very Good level.

l What made you certify the project in Poznań?We always consider sustainability as a priority, so it was natural that this was addressed in Poznan. The question was which environmental bench-mark we should use. We selected BREEAM, as it's the most widely used sustainability standard worldwide and therefore also is the most "market tested" with logistics operators and investors.

l How do logistics and warehousing influence the environment?Our sector typically requires a lot of land for development and this can have a substantial physical impact on the environ-ment. If you're taking a site of 20 hectares, leveling land or changing water courses

has a significant influence on the local environment.Through BREEAM, we're able to have a clear and coherent plan to reduce the overall impact of the development. Once the development phase is completed, the sustain-ability of the operations of our warehouses has to be considered.

l Poland may be in for a solar boom, are you receiving calls from solar developers who want to use your roofs?We're in a good position

to draw on our experience from our other parks. We have solar installations on our projects in Prague, where we found they have made commercial sense. We will be happy to discuss proposals with

any interested solar panel operators in Poland.


� In July of 2012, the Polish government opened funding to improve the energy efficiency of businesses. Business owners may apply to the National Fund for Environmental Protection and Water Management (NFOŚiGW) no later than October 31, 2012. The funding may reach 70% of the total cost of the energy audit and 75 percent of the cost of the investment in businesses whose annual energy usage surpasses 20,000 MWh.

� Solar panels will be installed in 50 villages in southeastern Poland as part of a Swiss program that disburses funds to CEE countries. The Swiss will provide solar panels for at least 16,000 homes and 170 public buildings including seven large demonstration installations. The homes will be selected based on socio-economic indicators and the potential for emissions reduction. The PLN 235 million (€53 million) project will result in the installation of at least 16 MW of solar power. The project comes at a time when Poland has committed to produce at least 15 percent of its power from renewable sources by 2020. Solar installations will help reduce so called low-emissions from burning coal in households.

� Hubert Wirth, the chief executive of copper producer KGHM Polska Miedź said his company plans to produce solar cells. "We are looking for new, niche markets, Mr. Wirth said. Headquartered in Lubin, the com-pany also produces gold, lead, sulphuric acid and rock salt.

LEED Platinum for Skanska's Malta House

Funding for efficiency launched

Swiss program to fund solar for 16,000 homes

KGHM goes solar

Skanska’s Waldemar Olbryk

at Malta House cornerstone

ceremony

� THE CORNERSTONE ceremony was held at the Malta House, an office project from Skanska Property Poland in Poznań.The building will have five stories above ground level and two stories underground. The total leasable area will amount to 15,700 square meters and 272 parking spaces will be available for tenants. A parking lot will also be provided for bicycles, as well as changing rooms and showers for cyclists. The construction is scheduled for completion in the third quarter of 2013. Malta House was pre-certified at the LEED Platinum level. “Innovative solutions applied during the design and construction process will contribute to creating a comfortable work environment in the offices, at the same time reducing electricity and water consumption, thus lowering operating costs for the tenants,” according to the developer’s press release. The project was designed by Pentagram Architekci. Skanska Property Poland handles the construction in-house via its general contracting company Skanska SA. Malta House is being constructed on a plot of just 6,000 square meters that the Swedish developer bought in 2010.For the city of Poznań, the project will be yet another argument in attracting sectors like business process offshoring, share service centers or research and development, according to the city hall. Polish regional cities like Poznań, Wrocław or Gdańsk, are considered to be attractive locations for these types of services thanks to educated and (still) cost-attractive workforce.

BR

IE

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� ENERGY IN GENERAL and renewable energy in particular have a reputation of being quite demanding, capital wise, and therefore reserved only for the few capable of tabling substantial equity. Energy Invest Group (EIG), a wind investment company, is rolling out a program that, if successful, could see renewable energy investment become a business for the rank and file. The company has been canvassing financial support for 100 1.5 MW wind projects, to be developed across the country, with each project being a separate investment of PLN 12.5 million (about €3.07 million), where PLN 9 million (€2.2 million) will be coming from banks as long as the remainder of PLN 3.5 million is secured by EIG. The company is holding a series of meetings in Poland for potential investors to raise the equity. The minimum entry level that EIG is proposing is just PLN 4,000 (about €1,000) paid once a

year for four years, which is the duration of getting a given project up and running. Each stakeholder will receive a dividend on their investment, paid on annual basis from a project’s revenue. The latter is safe, EIG says, because the support system for renewable energy, both under the current law as well as the upcoming draft on renewables guarantees long term price support for energy from wind, which is currently the most developed renewable energy sub-sector in Poland. EIG managed to sign up a wind development company Siłownie Wiatrowe to execute the projects once and if the financial side has been secured. The projects will be located in five Polish provinces: Szczecin, Gdańsk, Warsaw, Łódź, and Lublin, where wind conditions are best on average. The first project is expected to go online in 2014 in the Łódź province, while the 100th in 2020.

EIG tries to lower entry level for wind investments

Briefs

Wind - a business for everyone?

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� Esperotia Energy Investments, a Wrocław-based biogas installations developer, debuted on the Warsaw Stock Exchange’s alternative market NewConnect. Share series A through D are now trading on NewConnect while the company raised PLN 2.5 million (€600,000) with which it is going to finance development of biogas installations in Poland. Currently the company has a biogas project underway in Starogard Gdański and is planning to develop 30-40 biogas installations in Poland, Bulgaria, Romania and Slovakia in five years. Esperotia stock traded at PLN 0.41 (€0.09) at the end of the day’s session, 8.89 percent below the opening price, and at PLN 0.31 (€0.07) when this magazine went to press in late August.

� Capital Park Group, a Polish property investment firm owned by Patron Capital Partners, completed a public bond issue with Polish institutional and private investors, raising €24 million to finance development of office projects in Poland. Minimum 60 percent of the proceeds will support the Eurocentrum office project in Warsaw. Eurocentrum has been precertified for LEED Shell & Core Gold level by the US Green Building Council. The project will go online in 2014. Capital Park will introduce the bonds to trading on the Catalyst market, a debt instrument market operated by the Warsaw Stock Exchange, and the BondSpot trading platform. The bond issue was priced at 500 basis points over six-month Wibor, Poland’s interbank lending benchmark. Bonds mature on 9 July, 2015.

� Tauron Ekoenergia, a renewable energy subsidiary of Grupa Tauron, signed general contractor Aldesa to build a PLN 243.76 million (€57.71 million) wind power project in Wicko, Gdańsk region. The 40 MW project will be constructed by a consortium of Aldesa companies: Aldesa Nowa Energia and Aldesa Construcciones. The contracted companies will have 15 months to do the job. The Wicko project is Grupa Tauron’s fourth wind farm. In 2011, Tauron Ekoenergia took over Katowice-based utility company GZE with its 30 MW wind project in Zagórze and also acquired a 30.75 MW wind farm in Lipniki. Tauron is also developing a wind project in Marszewo, with a capacity of 82 MW.

� In July, the price of emissions allowances (EUAs) decreased 21 percent. The value of CERs, certified emissions reductions traded through Kyoto Protocol's Clean Development Mechanism also fell, by 37 percent. The spot price for EUAs fluctuated between €8.24 and €6.54, while CERs moved between €4.12 and €2.58. Analaysts say that prices are falling because of EUAs introduced by the European Commission as part of the 300 NER program, financing innovation through sales of emissions reserves. The postponement the EC's decision to solve the problem of surplus allowances on the market also played a role.

� The tender for the incineration project in Poznan is in its final state of completion, according to wnp.pl, a news portal. In September of 2011, five consortiums were pre-qualified to participate in the tender, which may reach the value of PLN 1 billion (€245 million). The project is one of several large ones underway in the waste-to-energy sector (see p. 70-73).

Esperotia debuts on NewConnect in Warsaw

Tauron contracts Aldesa

Carbon market slowdown continues

Incinerator update

Capital Park places bond issue to finance Eurocentrum


TO BE PRAISED

TO BE IMPROVED

Veturilo has a flying start in Warsaw

Biomass blown away

Briefs

Veturilo, Warsaw's public bike program, registered 20,000 users and concluded 40,000 bicycle trips in its first ten days. Veturilo means "vehicle" in Esperanto, a language for people who love

languages. Thanks to Mateusz Kempisty, who gave the program its name, Warsaw finally has a bicycle program for people who love bicycles. Veturilo, operated by NextBike

company, has taken the pain out of commuting: renting a bike costs little (PLN 1, or

€0.25, for the first hour), easy to find (there are 57 stations) and surprisingly empowering (jump on and see!) The bicycle is the world's most ubiquitous form of transit. Go anywhere in the world and you'll find people cycling, and smiling. Nothing converts calories to forward motion better. Veturilo wins our pro column not only for being clean, but also for being good looking (see our photo essay on p. 62).

PGE has been in the news lately, for less than glamorous reasons. A coal dust explosion shut down 3 of 8 power blocks at Turów, one of PGE's largest power plants, which provides 7 percent of Poland's power, utilizing the technology of biomass co-firing with coal. In early August, PGE chief executive blasted the current renewable energy draft law, criticizing the reduced support for co-firing that is expected to bring an end to biomass co-firing investments before long. In August, the European Commission said no to exempting five of PGE’s paper-planned, as yet unbuilt power plants from phase 3 of the ETS. What the utility hasn't done, and doesn't seem likely to do, is to embrace a low-carbon future. Even a casual observer of the European Union's energy policy would understand that a carbon free future by 2050 means investing in carbon-free technologies today. PGE, we expect more from you.

� ILF Polska was contracted to design the pipeline and the associated infra-structure to transport the compressed CO2 from the carbon capture plant to the storage site in a PGE Group’s CCS (carbon capture and storage) project in Bełchatów. The project is a part of a the European CCS Demonstration Project Network, an EU effort. It will consist of a carbon capture plant (CCP) of an equivalent power of 250MW and a CO2 capture efficiency of 80 percent, utilizing the Advanced Amine Process (AAP) CO2 capture technology. The CCP will be integrated with a recently-built 858 MW power generation unit. The CO2 Storage part will inject pressurized CO2 into the ground (deep saline aquifers) for permanent storage.

ILF Polska contracted to PGE's CCS project

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pro/con

� Fortum Power and Heat Polska is working to secure 500 hectares of land to grow common osier, a species of willow, to cover the demand for biomass in the company’s thermal power plants in Częstochowa and Zabrze. Facing reduced support for biomass cofiring, Fortum plans to switch entirely to biomass power and heat production.

Fortum eyes biomass


� Apparently, Polish utility PGE has little good to say about the proposed renewable energy law. In August, chief executive Krzysztof Kilian wrote in the daily Dziennik Gazeta Prawna that "the ministry of economy ignores the voice of the power sector in its draft law." His main criticisms of the proposed bill have to do with reduced support for co-firing and onshore wind, both of which PGE principally aims to develop.

PGE criticizes draft law on renewables

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�Polish minister of environment Marcin Korolec backed Warsaw as an ideal candidate to become the seat of the United Nations’ Green Climate Fund. “Warsaw is safe, green and comfortable to live. I keep my fingers crossed for its candidacy,” Mr. Korolec told news service newseria.pl in August. The fund was decided during last year's UN climate conference in Durban, South Africa. The purpose of the fund is to “make a significant and ambitious contri-bution to the global efforts towards attaining the goals set by the international community to combat climate change”. Poland has long claimed that the EU’s drive to reducing emis-sions is economically dubious given that the rest of the world is far less concerned. For the interview with Mr. Korolec see p. 78-79.

Environment minister backs Warsaw for GCF

RWE acquires Taciewo from Gamesa� RWE INNOGY acquired the Taciewo onshore wind farm in Poland from Spanish wind development firm Gamesa. The companies did not disclose the value of the transaction. Situated in the northeast of the country and developed by Gamesa, the Taciewo project’s 15 turbines add up to a total installed capacity of 30 megawatts. Taciewo has now grown the Polish wind portfolio of RWE Innogy to an installed capacity of 152 MW. “Taciewo marks the midpoint of our Polish development targets. We intend to operate about 300 megawatts in Poland in 2015. At present, our Nowy Staw wind farm with a capacity of 39 megawatts is under construction. It is due to be commissioned early in 2013,“ said Hans Bünting, CEO of RWE Innogy, as quoted in the company's press release. Taciewo can generate over 65,000 megawatt-hours of electricity per year, enough to meet the equivalent requirements of over 32,500 households per year and to avoid 65,000 tons of CO2 emissions, according to RWE Innogy. The project operates wind turbines of the Gamesa G90-2.0MW type, with a rotor diameter of 90 meters and a hub height of 78 meters. Taciewo borders directly on the Piecki wind farm with a capacity of 32 megawatts commissioned by RWE Innogy back in 2010. Overall, RWE Innogy now operates five onshore wind farms in Poland: Suwałki (north eastern Poland) with over 41 MW has been on stream since 2009, followed by Tychowo in the north west (35 MW), Piecki (32 MW, north east) and Krzęcin (14 MW, north west).

� Polish biogas company Biogal will install a third 800 kW agricultural gas fired boiler at its CHP plant in Boleszyn, south Poland. The expansion will cost about PLN 7.2 million (€1.8 million). The project will be co-financed by the EU's Regional Operational Program with PLN 2.9 million (€708,000). The Boleszyn biogas plant has been operational since May of 2012. According to Biogal, there appeared opportunities to source bigger amounts of substrate for the installation, hence the expansion.

Biogal installs third boiler in Boleszyn

Not so quieton the finance

FrontTwo decades ago, BOŚ Bank was one of very few institutions financing environmental

investments. What’s the bank’s position now?

BOŚ Bank was set up 21 years ago by NFOŚiGW* to finance the envi-ronmental investments market. The market has developed enormously since that time and we’re now com-peting with many universal banks that joined in the game as soon as environmental protection became proper business.

With only so much capital available in Poland for investments in, for example, renewable energy, the Polish market is said to be very attractive to foreign companies and investors. What role does the banking sector play in financing projects in the environmental business?

Banks finance a wide array of projects, from municipalities’ upgrading local water infrastructure to projects funded purely by private sector. If you take a close look at the big projects, however, like renewable energy, they would nev-er take off without the banks. Big proj-

ects are usually financed by bank con-sortiums in 80 percent at least.

Can the environmental sector survive without the state help at all?

There are of course companies who are out there seeking debt finance with-out looking at the subsidies and other forms of financing available from the state institutions, but the state help takes on a great number of forms. There are support programs that help invest-ments and there are programs that help companies on the revenue side via guaranteed prices, as in the case of re-newable energy certificates of origin. Without such programs, it would take unreasonable amount of time for in-vestments to yield return.

Many environmental projects wouldn’t make sense without state aid, but it’s the private sector that is ultimately going to make them happen, according to Anna Zyła, chief ecologist at the Bank of Environmental Protection (BOS Bank), Poland’s oldest environmental finance institution.

B Y W O J C I E C H K O S C P H O T O G R A P H Y B Y S Z Y M O N S Z C Z E S N I A K

B A N K F I N A N C I N G


“ At the moment, what investors worry about is

the eventual shape of the law

on renewable energy. We know that there will be changes, but we don’t know what changes they’re

going to be.”

.

* National Fund for Environment Protection and Water Management

Anna Żyła, BOŚ Bank: Financing

energy efficiency is very attractive

for banks

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Are you concerned by the Polish position on the European Union’s decarbonization policy? Poland’s clinging to coal works against the bank’s business, doesn’t it?

It’s not that Poland only says ‘no’ to everything about the decarbonization policy. Poland is doing a lot in terms of energy efficiency, which is one of the basic elements in the drive towards low-ering CO2 emissions. Financing energy efficiency investments is very attractive for banks because it generates savings that allow companies to pay the banks back more easily.

What if Poland keeps putting forward obstacles to other goals of environmental policy in the EU, like more ambitious long term CO2 reduction? Won’t investors from the sectors that BOŚ Bank finances just give up?

The investors and the banks have more immediate issues to look at. At

the moment, what investors worry about is the eventual shape of the law on renewable energy. We know that there will be changes, but we don’t know what changes they’re going to be.

Has the volume of your renewable energy financing decreased be-cause of the uncertainty about the renewables’ law?

It has, though BOŚ Bank never stopped project financing because we always believed that there would be a support system for renewable energy eventually. We’re currently working on the financing for some big renewable energy projects, so it’s not that the mar-ket went completely quiet. Besides, with some projects, there were factors, like a strong financial partner, that reduced the regulatory risk.

What are the bank’s most popular financial products?

“Popular” could be applied to products

targeting retail customers so it’s financ-ing thermal modernization of buildings and financing the purchase of solar col-lectors, subsidized by the National Fund for Environmental Protection and Wa-ter Management (NFOŚiGW).

Fitting one’s property with equip-ment that reduces energy con-sumption adds to the overall cost. Is the reduced interest rate on the bank’s ecological mortgage a good enough incentive when the cost up front is bigger while savings are stretched over long time?

These days, not everyone is ready to bear the higher cost of solutions that optimize energy use in buildings. We would like to draw our customers’ at-tention to the fact that we can credit the purchase of such solutions and equip-ment so that over time the energy use will be reduced. I think that the more education about the environment and financing, the better.

2000 4,486 4,240 294 - 148,026 624 201,376 880 6,368

2001 1,394 419 120 - 221,014 369 967,907 1,452 24,828

2002 3,263 24,189 552 70,637 75,349 349 139,350 240 10,389

2003 421 4,931 17,082 309,597 49,528 301 15,460 600 6,805

2004 485 14,457 129 37,710 5,428 595 502,919 82 16,590

2005 2,996 345 554 27,749 7,595 273 1,342,234 710 7,905

2006 327 3,847 761 290,912 11,336 322 375,118 21 181,717

2007 7,113 2,724 897 280,961 3,025 209 30,610 217 80,136

2008 1,139 21,928 265 130,792 188 136 41,510 113 105,834

2009 1,021 9,132 1,027 230,796 7,939 297 55,117 1 10,529

2010 193 200 41 65,168 102,243 1,728 24,939 0 112,015

Period Dust*

(tonnes/years)SO2*

(tonnes/years)NOx*

(tonnes/years)CO2*

(tonnes/years)Wastewater treatment**

Length of sewage

network (km)

Waste and recycling

(tonnes/years)

Landfill capacity

(thousandsofm3)

Renewable energy/power

savings***

� BOŚ Bank is partof a larger picture: that ofinvestorsandfinancialinstitutionsrecognizingthepotentialofenvironmen-talinvestments,theirresultsexemplifiedinthetable.AccordingtoBOŚBank,theinvestmentvolumeintangibleassetsrelatedtoenvironmentalprotectionandwatermanagementgrewby7.4percentin

Polandin2010.Thevalueoftangibleassetsinenvironmentalprotectionandwatermanagementhasonlybeenrisingsince2002,andreachedPLN14.5billionin2010.Alargeamountoftheenviron-mentalfundingweredirectinvestments,making44.2percentinvestmentprojectsinenvironmentalprotectionand43

percentinwatermanagement.Ecologicalfundsandloansmade27.7percentofinvestmentsinenvironmentalprotectionand21.1percentofinvestmentsinwatermanagement.Theshareofecologicalfundsasasourceoffinancinghasbeenfalling,withtheshareofbankloansrisingintheirplace.

E N V I R O N M E N T A L I M P A C T O F P R O J E C T S F I N A N C E D B Y B O S 1 9 9 1 - 2 0 1 0

There are good IRRs in clean air and water*Emissionsreductions**Plantcapacity(m3/day)***MWh/year

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banks’ radarFlying below

the

V E N T U R E C A P I T A L

Krzysztof Młynarz, chief financial officer at renewable

energy investment and advi-sory company Environmental

Investment Partners (EIP), says that there can be life in

the environmental financing sector even with the banks do

not want to get involved.

B Y W O J C I E C H K O S C P H O T O G R A P H Y B Y S . S Z C Z E S N I A K

How cautious are banks in their approach to financing renew-able energy projects?

Currently, most banks are holding up involvement in renewable energy because of uncertainty about the fu-ture revenue stream that could secure repayment of the project finance fa-cilities that they provide. The uncer-tainty has a widespread effect, as power distributors are unwilling to sign long term power purchase agree-ments and certificate purchase agree-ments without clarity about the sup-port scheme in Poland.

Where do banks fit in the financing strategy of your company?

Our focus is venture capital, renew-able energy and cleantech invest-ments. In most cases we target early stage companies that remain below the radars of banks, which like to see stable cash flows or at least solid pros-pects for cash flows before lending any funds. Still, banks are important as providers of complementary services and financing facilities for transac-tions or projects we work on. You can circumvent banks and secure financing by issuing bonds or going public. In the current climate, are those methods of financing used often?

The demand for long term corporate bond tenors is rather limited among Polish investors. They would rather be interested in short term bonds, maturing in 1-5 years. So project own-ers looking at bond financing need to be ready to refinance the bonds at ma-turity with a corporate credit facility or by rolling them over.

Public and private equity transactions are an option too, but they cause owner-ship to dilute. Some of our clients are private equity investors looking to invest in projects ready, or almost ready, for construction. They usually expect to be-come majority and, preferably, a 100 percent shareholder in the project. What are the investors’ expecta-tions in terms of returns at each of the main project stages?

The development phase is least capital-intensive, and attracts high risk capital investors who are looking for IRR (in-ternal rate of return) around 100 percent or higher for completed projects. They’re

prepared for delays and write-offs on projects that eventually won’t reach the building permit stage.

The construction phase requires sub-stantial capital investment, often un-available to the development phase investors. This gap is filled by utilities or private equity investors who aim to complete construction and operate the project, or sell it after reaching full pro-duction capacity. Utilities are looking for at least 11-13 percent project IRR, while private equity investors would consider project IRR at 15-18 percent. They usually leverage their investment with project finance while utilities may choose to finance construction with their balance sheet and then refinance the operating project.

The operation phase is least risky and attracts most conservative and long term investors, with 20-25 year invest-ment horizon, stable income, and low operation risk. They’re typically pen-sion funds and utilities. IRR for this stage would be at 8-11 percent.

Bank financing could be circum-vented, says Krzysztof Młynarz

ProjectsUp For Grabs

The Miłoradz wind-farm marks a new stage in renewable energy financing, where projects will be snapped up by Polish utilities that have dragged

their feet in developing their own portfolios.

B Y J O H A R P E R

E N V I R O N M E N T A L F I N A N C E


MIŁORADZ IS A 60 MW wind farm in northern Poland. In July, the project - developed by Polish

Energy Partners - was taken over by Energa, Poland’s fourth largest utility. The PLN 38.7 million (€9.22 million) deal will be finalized in 2013 and some analysts believe that it points at an up-coming wave of joint-ventures and takeovers, with large state-owned com-panies attempting to strengthen their position on the Polish renewable en-ergy market.

Energa is one of the so-called big four of state-owned energy companies, the others being Polska Grupa Energetyc-zna (PGE), Tauron and Enea. Contrary to the size of their balance sheets, these companies have failed to accumulate sizeable portfolios in the wind sector - the largest and most interesting among the renewable energy sectors - and are now looking to buy attractive

projects developed by others.“Down the line we could see joint

ventures between Poland’s big four and foreign players. The next stage could be the big Polish companies buying up smaller local operators or their proj-ects,” said Wojciech Hann, an analyst at Deloitte.

HARVEST TIME

Several wind power development spe-cialists, such as Iberdrola, Gamesa, or Polish Energy Partners, have been bear-ing more risk to date than perhaps they had planned for.

But with investor interest in the still-nascent sector growing, these compa-nies will stand a chance of reaping fruit at last, as the large domestic utilities, mostly burning fossil fuels, will be looking to increase their stake in a mar-ket that could double in size over the next eight years.

Poland’s target for the share of re-newables in gross final consumption of energy in 2020 is 15 percent. The gov-ernment has recently released a draft proposition of a new law on renewable energy that’s increasing support for solar, offshore wind and most types of biogas. “This will be a breakthrough for renewables in Poland,” said Chris-tian Schnell, a lawyer at DMS law firm.

The breakthrough has been long in the making. Governments, until now, have largely failed to recognize the po-tential of renewables, or, as the more courageous criticism goes, have been unwilling to undermine the status quo.

“The government has not been too enthusiastic about renewable energy, preferring coal and looking for nucle-ar and shale gas as fuels of the future,” said Kamil Jankielewicz, a legal ad-viser at Allen & Overy.

Increasing foreign interest is working to galvanize local interest as well. Funds

Too little support and credit flow slows down, too much and a bubble emerges,

with prices flopping down the line

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from Spain, Israel, Australia and the US are interested in the sector and this is pushing the big four – who were dragging their feet a bit - towards co-operation as a way forward.

OBSTACLES ON THE WAY

There are challenges with financing to sort out, however. “The banks’ risk aversion is clear to see. They tend to want 100 percent certainty in the cur-rent environment, but this is still a largely unknown business. There are important and potentially troublesome issues of obtaining the requisite permis-sion and land rights,” Weronika Pelc, partner at law firm Wardynski & Part-ners, told Cleantech.

Ms. Pelc said that, provided every-thing proceeds smoothly, the legislation would likely enter into force as of Jan-uary 2013 while the levels of effective subsidies will be finalized by March 2013. “Until then the banks are going

to remain a bit standoffish,” she added. According to local analysts, lending

rates for investments in renewable en-ergy in Poland are at about 200-250 bps above WIBOR (currently at about 5.15 percent). The rates depend on the stage of development and the type of renew-able energy, with wind-power generat-ing most interest and hence lowest levels of perceived risk.

“The rates could be a fair reflection of the level of risk at this stage,” the Deloitte analyst Mr. Hann said, indicat-ing that investment plans in the pipe-line have dried up in 2012 alongside uncertainty as to legislation determin-ing the level of subsidies to be passed on to renewable energy producers.

The incentives structure needs to be clearly thought through. Too little and the credit flow slows down, too much and a bubble could emerge, with pric-es flopping down the line.

The key to the investment puzzle is

where to allocate costs, either from public sources or private investors. Pri-vate investors in renewable energy want to see the public purse underscore its warm words for the sector with higher effective support for projects funded or co-funded by the big four, among various avenues for increasing state involvement.

In a country dominated by coal and still lacking a transparent policy to-wards the energy sector, the level of effective risk is difficult to gauge and therefore to price.

Markets do their best to price such levels of uncertainty and risk differen-tials between market sub-sectors into their cost allocating mechanisms, in the form of lending costs.

But the downside risks are clearly manifest and, at this stage, it’s only in-vestors with deep pockets and/or low risk-aversion thresholds that are ready or willing to take the jump.


Grid mainte-nance crew at work in Bielsk Pod-laski, Poland.

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There are three determining factors in the development of wind power in

Poland: subsidies, grid connections and legislative predictability. Currently, all

three are up in the air.

B Y T O B I A S Z A D A M C Z E W S K I , C L E A N T E C H P O L A N D , P R I N C I P A L A N A L Y S T

E N E R G Y I N F R A S T R U C T U R E

Wind

blowing it&the grid:

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TO DATE, 17 GW of wind power projects have received grid connec-tion terms in Poland. Out of these,

13 GW have signed agreements with grid operators (so called TSO and DSOs), and an additional 2.2 GW are operational.

Wind power seems to be the driving force behind Poland’s push towards the EU-required goal of 15 percent renew-ables in overall energy consumption by 2020. But the goal is still far away, and it seems that the rate of new onshore wind power production could decline, at least in the short term.

Onshore wind power today covers approximately two percent of Poland’s demand for electricity. Getting to 15 percent renewables’ share in total con-sumption in eight years will be a chal-lenge. Not least because the subsidies for co-firing could plummet with the arrival of the new law on renewables (see page 10).

PSE Operator, the nation’s power transmission system operator (TSO) doesn’t seem to be worried. According to the company’s strategy document, 2010-2025 Development Plan, the amount of power for which grid con-nection terms have been issued is such that Poland’s renewable energy target will be overachieved, even twofold.

However, Arkadiusz Sekściński, deputy director of the Polish Wind En-ergy Association (PSEW) doesn’t be-lieve Poland will get there so easily. He says that connection terms are one thing, getting the investments up and running is another.

According to Wind Energy in Po-land, a study done by TPA Horwath, a consultancy, the key barriers to wind


market development in Poland, accord-ing to investors, are the grid connection policy and legislative instability.

GRID HOGGERSPSE Operator’s outlook on reaching

the 15 percent target might be a shade too confident. The available connection space is spoken for by companies hold-ing connection agreements. But most of these would-be developers probably won’t develop anything more than a proposal to sell this right. New develop-ers, then, have a choice to either buy out an agreement holder, or try their luck negotiating connection terms with distribution system operators (DSOs) or the TSO. The former is expensive and risky, while dealing with operators is expensive and time-consuming.

“Grid-hogging” has been one of the most difficult challenges in wind pow-er development thus far. Grid-hogging is caused by 3rd party speculators who pay for the rights to connect, but who

have no capacity nor plan to carry out the investment. Following scrutiny from media and the government, this phenomenon has been cut short after amending the energy law - well, almost.

Companies were made to pay an ad-vance fee of PLN 30 (€7.35) per kW of planned power connection, and many of the purely speculative investments fell off the grid. However, there still remains a considerable amount of grid hogging caused by projects waiting to be fi-nanced. Underfunded developers are therefore amending their agreements with grid operators and delaying their connection dates while waiting to sell their captured capacity at a premium.

While the validity of grid connection terms is two years, the agreements can be prolonged much beyond that. Some developers received connection terms back in 2010, but according to the agreements, their projects aren’t due to go online until 2018 or even 2019.

“This is a huge obstacle for legitimate

“PSE plans the grid development in such

a way so that approxi-mately 8,9 GW of wind power can be connect-

ed by 2020, without impacting the transmis-

sion network’s opera-tional security”

Sławomir Smoktunowicz, PSE Operator

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wind developers, who want to get their projects up and running as soon as pos-sible, but are struck with the inability to secure a grid connection,” said Jean-Claude Moustacakis, CEO of Green Bear Corp, a wind developer.

“Getting connection terms and later a connection agreement is one thing, securing a connection for a reasonable timeframe is another. Since basically all the connection capacity is taken up by the owners of the so-called ‘virtual connections’, you are left with negotiat-ing conditions with them or the grid operators,” he added.

The scarcity of planned grid capacity to be available in the near future makes the grid hogging problem all the more relevant. In fact, the operators’ plans suggest that the grid capacity for renew-able energy is basically exhausted.

GRID SCARCITYThe Polish energy law makes connect-

ing renewable power to the grid obliga-

beyond the contracted space to date. After all, grid operators have little incen-tive to expand the network beyond the capacity needed to reach the 15 percent renewables target.

PSE Operator has planned that the maximum capacity for connecting wind farms and other new renewables by 2020 will be 8.9 GW. Since approx-imately 2.2 GW of wind power are al-ready installed, that leaves space for only about 6.7 GW of projects to be developed.

PSE Operator expects that out of the 17 GW of wind power projects with grid connection terms, about 30 per-cent will be completed by 2020.

tory under certain conditions. The ex-ception is when the project is deemed uneconomical or technically impossible. This exception gives grid operators some room for maneuver. For instance, in April 2012, a ruling of the Supreme Court questioned the sole responsibil-ity of the grid operator to bear all expan-sion costs for the purposes of making wind power connectable.

Grid operators have their five-year plans for grid outlays, so if a renewable energy investment is not in compliance with such plans, it will have a hard time being completed. Within these plans, it’s clear how little available space there will be for new renewable energy investments

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� One of the major bottlenecks in renewable energy development is connecting to the grid. Although it seems that Poland is on the right track to a healthy subsidy system, this might not be enough. Wind experts agree that most of the 17 GW of wind projects won’t happen. But forecasting 6.9 GW of space for all renewable projects by 2020 leaves room for improvement. Especially since only 300 MW are planned to be available for other types of renewable energy than wind.

TOTAL WIND POWER PROJECTS* IN POLAND IN 2012 AND GRID CAPACITY IN 2020 (MW)

*According to PSE, only about 30% of projects with connection terms in 2012 will be connected to the grid by 2020

SOU

RCE:

PSE

Additional capacity for other renewable energy projects (excl. co-firing) by 2020Expected projects with issued connection terms (only)WP projects with issued connection terms (only)WP projects with signed connection agreements (and connection terms)

Operational WP to date

25,00020,00015,000

5,00010,000

0Total wind projects

in Poland in 2012Total grid capacity

in Poland for renewable energy

projects in 2020

2,2008,600

13,000

4,000

300


Sławomir Smoktunowicz, PSE’s press officer, told Cleantech that PSE predicts that 8.6 GW of wind power will be in-stalled by 2020 in Poland.

But getting the new power up and running will require real investments, which can only come if there is avail-able grid capacity.

LEGISLATIVE INSTABILITYBecause the legislative process is on-

going, banks have been putting their money elsewhere. Financial institu-tions, whose lending terms are tied to profitability, are not sure yet how prof-itable it will be to produce onshore wind power. The new draft law pro-poses to decrease the value of green certificates for producing onshore wind by 10 percent.

“Until we have regulatory stability, investment in any type of renewables will be backlogged. Since December 2011, when the first proposal of the new renewable energy law surfaced, finan-

cial institutions such as Raiffeisen Bank and PKO BP put these projects on hold,” said Wojciech Romaniszyn, at-torney in-fact at Siłownie Wiatrowe.

Raiffeisen’s spokesman Marcin Jedliński confirms that there will be fewer projects coming online in 2013. “There usually is a 6-9 month delay between the slowdown of granting loans and implementing projects. Start-ing next year, we will see the effect of the 2012 downfall in financing wind farm projects,” he said.

Even if the new law gets passed soon, it won’t mean finding equity will be as easy as it was before. “Banks will be expecting developers to have a larger share of investment capital. This should however be compensated through cheaper components and better effi-ciency”, said Mr. Jedliński.

The future of wind power in Poland looks shaky. There’s been continuous growth in wind farms (724 MW by 2009, 1180 MW by 2010, 1616 MW by

2011 and 2188 by end of Q2 2012). Starting next year, the trend might re-verse. With slowdown in 2013 and likely in 2014, the wind power growth dynamic will need to go from 500 to 800-1000 MW annually so as to remain on track for the 2020 renewables target.

The five-year plans that grid opera-tors have developed show that not many new connections will be available by 2017. Perhaps when renewable en-ergy starts to flatten in the next couple of years, there will be more pressure to put resources towards expanding the grid. Cleaning the grid of grid-hoggers will be key. Funding may be available: in 2013 revenue from sales of EU emis-sion allowances will start filling the treasury and there may be climate cash in EU coffers.

When renewable energy development starts to flatten, there will be pressure to

put resources towards expanding the grid. Cleaning the grid of grid-hoggers will be key

Arkadiusz Sekściński, PSEW: getting projects operational is much bigger a challenge than getting con-nection terms

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GRID OPERATORS IN POLAND

� The 5 major DSOs distributed over 108 TWh of electricity in 2011 (out of 163 in total). This doesn’t include Vattenfall, one of the major distributors, which left Poland in order to focus on their primary markets: Netherlands, Sweden and Germany.

Transmission System Operator

Distribution System Operators

PSE Operator

PGE dystrybucja

ENERGA Operator

TAURON Dystrybucja

ENEA Operator

RWE Stoen Operator

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strong windsTaming

the

G E R M A N O F F S H O R E W I N DGermany plans to develop about 10 GW of offshore wind

and send it south along high voltage transmission lines. It’s a reversal of the current para-

digm and a big step forward for the offshore industry.

B Y H U N T E R D I A M O N D

IN GERMANY, DURING the last several decades, the bulk of power generation has been transmitted

from south to north, much coming from nuclear power plants that came online in the 1970s.

But in May of 2011, then German environment minister Norbert Röttgen announced the “definite end” of Ger-many’s nuclear power by 2022. What was first conceived as a temporary moratorium on nuclear power in the wake of the Fukushima disaster was extended to a complete shutdown of the sector in Germany.

ENTER NOW, OFFSHORE WINDWith the absence of nuclear power

looming in the near future, Germany needs to reconfigure its power portfo-lio. Berlin plans to develop about 10 GW of offshore wind power and send it south along high voltage transmission lines by 2020, a reversal of the current paradigm. It’s going to be a big step forward for the offshore industry.

Offshore wind in Germany got off to a start with the completion of the first large project, Alpha Ventus in Novem-ber of 2009. A €250 million joint venture of EWE, E.ON and Vattenfall, the proj-ect’s has capacity of 60 MW. Germany’s first offshore wind farm was financed from the balance sheet of the three utilities, along with the European In-vestment Bank.

Germany’s largest offshore wind farm, Bard Offshore 1, will be finalized in 2013. The first project of its kind to utilize a high voltage direct current (HVDC) cable, the 400 MW wind farm is underway 200 km northwest off Wil-helmshaven, Germany’s third largest port, at an estimated cost of €1.5 billion.

The technical challenges in Bard Off-shore 1 are enormous and the project has faced difficulties, including the death of a young worker in January of 2012, and a recent change in the ex-ecutive leadership of the company. BARD, a vertically integrated offshore wind power producer, now plans to shed assets to get the project done.

“Offshore is a new business and the connection of this amount of capacity has not been done before anywhere in the world. We are building converter sta-tions offshore and this is a technical chal-lenge,” said Jelle Wils of Tennet, a com-pany connecting offshore projects in the North Sea.

According to German Energy Agency DENA, a typical German offshore wind project will consist of around 80 WTGs (wind turbine generators) and entail a total capital cost of about €1.0- 1.5 bil-lion. As many as 20 banks could be in-volved in financing the project, in addi-tion to export credit agencies and Euro-pean lending institutions.

Polish regulators will be looking at Germany to learn lessons for the devel-opment of their own offshore wind in-dustry. To date, the government has fa-cilitated the award of construction per-mits for offshore wind, including five permits to PGE and PKN Orlen for the construction of 4,500 MW, and earlier, two permits to Kulczyk Investments.

“Offshore is a new business and the connection of this amount of capacity

has not been done before anywhere in the world” Jelle Wils, Tennet

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Installed PV capacity in MW (by 2011)

Germany 24.6 GWCzechRepublic 1.9 GWSlovakia 0.50 GWBulgaria 0.14 GWPoland 0.001GW

A solarPV boom

If the current draft law passes, the subsidies for the sector may make Poland one of the best

markets in Central Europe. Here are basics on how the solar PV market could shape up.

B Y P A R K E R S N Y D E R

S O L A R P H O T O V O L T A I C


POLAND DOESN’T HAVE a sunny clime. There are only few daylight hours in winter. It’s certainly not Ita-

ly. But that hasn’t stopped the Polish gov-ernment from proposing one of the most generous subsidies for solar. Will it work?

The current renewable energy draft law proposes a feed-in-tariff (FIT) for sub-100 kW systems of €256 per MW, which will be the best tariff in Central Europe by the start of 2013. For utility scale projects over 100 kW, the govern-ment’s proposal is a green certificate

(GC) correction coefficient of 2.85 that will last for 15 years. But the future looks far from certain.

The law still needs to go through both chambers and even if it does pass there could still be challenges to get-ting the solar panels installed. As in-vestors learned in January of 2012 in the United Kingdom, the solar tariff could be withdrawn even after it’s passed into law. But should the solar subsidies come into effect, we could be in for a solar boom.

?

Global outlook Draft backTheproposedlawfollowsatrendofgovernmentslookingtosolartomakeadifferenceintheirrenewableenergynumbers,sincethecosthasdeclineddramaticallyduetocheapmanufactur-inginChina.PolandwantstofollowtheleadofGermanyandCzechRepublicthathavemanagedtoinstalldecentquantitiesofsolarPV.BulgariaandSlovakiaarecatchinguptoo:

InJuly,anewdraftlawonrenewablesreturnedtothetable.Thedraftplacesupontheutilitiesanobligationtobuygreencertifi-cates.Forsolar,thedraftlawproposesafeed-in-tariff(FIT)of€256perMWfor15yearsforsystemsunder100kW.ThecurrentFITsofferedincountriessurroundingPolandareallgoingtobereviseddown,makingPolandthebestmarketforsolarPVcome2013.TheFITforsub100kWinstallationswillbefixedfor15years,soforsmall-scalePVprojectstherecouldbeanimmediateboomduetotheeaseofinstallationandtheshortpermittingtime.Sub100kWarrayscanfitonrooftopsoflargebuildingsandwarehouses.

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Feed in tariffs (FITs) per MW in CEE countriesCountry FIT Duration Reviseddown?

Poland(proposed) €256 15years notyetintolawGermany €165-195 20years 2012CzechRepublic €252 20years 2012Slovakia €259 15years 2012

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The feed in tariff for sub 100 kW installa-tions will be fixed for 15 years, so for small-

scale PV projects, there could be an immediate boom, due to the ease of installation and the

time to receive permits

Large scale

Investor returns

Road ahead

ThedraftlawmakesPVinstallationsover100kWeligibleforgreencertificates(GC),whichcouldbemultipliedbyacorrectioncoefficientof2.85,meaningthattherevenueforaprojectwillconsistofboththepurchasepriceand2.85timesthegreencertificateprice.Thecorrectioncoefficientof2.85willlasttoatleasttheendof2014andwilldecreaseto2.4in2017,whichwillmakeiteventhenthehighestcoefficientamongallformsofrenewableenergy.

AccordingtoDMS,alawfirm,thecorrectioncoefficientsareissuedatthetimeapowerproducerobtainsalicense,andwillnotapplyretroactivelytogreenpowerinstallationsthatarealreadyoperational.

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Thereisstilluncertaintythatthelawwillpass,sobanksarepricingriskatabout300-350bpsovertheWIBOR,whichstandsatabout7.85percent,makingbankfinancingavailableintheneighborhoodof8percent.Un-leveragedreturnscouldreach7percentonprojectsunder100kW(assumingCAPEXof€1.7millionperMW)and9percentonlargeprojects(assumingCAPEXof€1.3millionperMW).Forutilityscaleprojects,depreciatedover20yearsandinoperationfor15years,assumingaCAPEXof€1.3millionperMWanda2.85correctioncoefficient,withan80/20debttoequityratioaninvestorcouldearn16percentIRRonequity.

Polandhasalmostnosolarphotovoltaic.Sowhytherushtocreateasolarmarket?

Duringthefirstsixmonthsof2012,thepriceofagreencertificatehasfallen,duetoanoversupplyofgreencertificatesawardedtoco-firingoperations.Alarmedbywhatco-firingmightdotoforests,theEuropeanCommis-sionispressuringPolandtoabandonits2010nationalrenewableenergyactionplan,whichreliesinlargepartonco-firingtomeetobligations.

ToouranalystsatCleantech,itcomesasasurprisethatsolarwouldgetpromoted,becausethecurrentdraftlawhasbeenmetwithconsiderableoppositionfromutilitieswhopreferco-firingbecauseitscheapandeasytointegratebiomasswithcoal-basedpower.

Evenifthesolarsubsidypasses,therearestillchallenges:PSEOperator,thetransmissionsystemoperatorchargedwithbalancingsupplywithdemand,hasnotplannedforthedynamicdistributedloadsproducedbysolarPV,norforthekindofcapacitythatcouldbebroughtonlineasinCzechRepublic.

Thatbeingsaid,thePolishgovernmenthasbeenreluctanttopromotedistributedformsofrenewableslikesolar,windandbiogas.Butifthelawpasses,thismaybethetimeforsolarinthenot-so-sunnystateofPoland.

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magicianSolar

R E N E W A B L E E N E R G Y

How did Peter Richards arrange €23 million of solar

PV bank financing in the midst of the EU’s sovereign

debt crisis? A few good ideas, and a little bit of magic.

B Y H U N T E R D I A M O N D P H O T O G R A P H Y B Y S . S Z C Z E S N I A K

WHEN PETER RICHARDS got a call last August, his colleague with whom he had worked developing

solar assets in the Czech Republic asked him, “Can you help arrange debt for a bunch of solar PV plants in Bulgaria?”

At the time, Europe was in the midst of a sovereign debt crisis. Banks were pulling back on financing renewable energy, especially in countries like Greece or Spain, who were looking as if they could go bust. Central Europe, the periphery, was thought next in line to suffer from a drop in confidence.

On top of that, Mr. Richards was up against a deadline. Bulgaria had just announced phasing out the feed in tar-iff for solar, as of June 2012. He only had about four months to arrange the debt and seven months to get the solar PV plant built.

After taking a hard look at the proj-ect, he decided to go for it. In an exclu-sive with Cleantech, Mr. Richards told us what it took to get a portfolio 13 MW of fully permitted solar PV sites financed next to no time.

KEEP IT IN COUNTRYThe first step was to find out possible

terms of bank financing. After making phone calls to about a dozen banks, in Paris, Vienna and Sofia, Mr. Richards realized he’d go nowhere unless he re-framed the assumptions.

“An international bank in Sofia needs headquarters’ approval to loan more than €25 million. Our six sites of 15 megawatts had a CAPEX of over €25 million. I had to convince the developer to cut the project size.”

When Mr. Richards proposed to cut out 2 of the 6 sites and reduce the project’s capacity from 15 to 13 MW, the devel-oper said no at first, but eventually the client understood that downsizing the project portfolio was the only way to get it built.

The next step was to get indicative terms from banks. Since the developer’s goal was to put up as little equity as possible, they chose the bank offering the best debt to equity ratio: 80/20, the only such case at the time.

WHAT DO BANKS KNOW? According to Mr. Richards, banks

look closely at a project in three key areas: the quality of the project sponsor, EPC (engineering, procurement and construction), and the feasibility of the production yields.

The project sponsor has to be credible, with a project history. The EPC contrac-tor also needs to have a track record and

provide certain reps and warranties. The bank will conduct due dilligence, assess-ing so-called P50 and P90 production yields (probability of the amount of power produced 50 percent and 90 per-cent of the time).

“The bank also wants to know the module and inverter manufacturer’s track record. I tell clients, buy Coca-Cola and not some discount soda. In other words, don’t waste your time specifying solar panels that aren’t al-ready on the bank’s approved manu-facturers list.” The choice eventually was Canadian Solar.

Mr. Richards says the EPC contractor should have a history of building PV plants because the construction sched-ule is time sensitive, as the bank loan is usually tied to a grid connection date. The financial viability of the project is dependent on the project getting con-nected to the grid before the tariff cut.

A BIT OF MAGICUsually an EPC contractor will re-

quire several payments based on a completion schedule, but Mr. Richards negotiated that the contractor would get paid 100 percent after grid conec-tion and bear all the risk if the project failed to make it on time.

“I got that term because all over Eu-rope, solar tariffs were being cut. There was a rapid compression of the market and an oversupply of equipment. EPC contractors were starving for work.”

In the middle of a cold Bulgarian winter his client broke ground, and today there are 13 MW of solar produc-ing power outside Sofia.


“Buy Coca-Cola, not some discount soda: don’t waste your time specify-

ing solar panels that aren’t already on

the bank’s approved supplier list”

Peter Richards

Peter Richards: got a PV project up and running

in hostile financ-ing environment in less than nine

months

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ChimneySweepers

In April of 2012, the French utility EDF opened up

a research facility to improve technologies

based on coal and biomass.

B Y H U N T E R D I A M O N D

L O W C A R B O N R E S E A R C H


AS THE LARGEST foreign en-ergy investor, EDF Polska (Élec-tricité de France) produces near-

ly 3 GW of power while burning coal, and increasingly, while burning bio-mass in co-firing operations. So it comes as no surprise that in mid 2012, EDF Polska opened a new company-funded R&D center.

In France, 95 percent of EDF power is low-carbon and mostly nuclear, but the utility has a massive carbon foot-print in Poland. Beginning in 2013, a percentage of their carbon emissions will fall under the EU’s Emissions Trad-ing System (EU ETS), so the utility has an incentive to invest in low carbon research and development.

Besides the forthcoming carbon tax, there are other reasons for EDF Pol-ska to open a research center. For one,

coal is unpopular with the European Commission who envisions a “carbon-free future” by 2050, and has put pres-sure on utilities to change their en-ergy mix. But the switch from coal to biomass has created other foreign source dependencies.

In 2011, Poland imported approxi-mately 1.7 million tons of biomass worth 700 mln PLN (€165 million). Since this quantity of boreal forest biomass is not available in Poland, most is imported from Russia. Critics charge that entire forests are being clear cut to fuel co-firing operations, and even when the biomass is har-vested sustainably, co-firing can pro-duce NOx emissions.

Grzegorz Wiśniewski, president of the Institute for Renewable Energy (IEO), noted in a research paper that

the cost of biomass has doubled in five years, reaching PLN 300 (€70) a ton, and causing damage to the domestic paper and furniture industries.

IT RHYMESTo take on these challenges, EDF

has opened a research center called POLe R&D. The scientists who staff the facility aim to engage the top minds at Polish universities to de-velop technologies based on clean coal and co-firing biomass.

According to Philippe Castanet, CEO of EDF Polska, the company plans to export its major findings to other mar-kets. “We are delighted by the establish-ment of EDF’s Kraków R&D centre, which illustrates just how major a role we play,” Mr. Castanet said, according to a press release.

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The POLe R&D facility will work jointly with EDF’s Polish power com-panies, including Elektrownia Rybnik, CHP Kraków, CHP Zielona Góra, CHP Kogeneracja, CHP Wybrzeże, Cergia and PEC Tarnobrzeg. It will also work with universities: Wrocław University of Technology, Silesian University of Technology, Kraków University of Technology, AGH University of Sci-ence and Technology, Gdańsk Univer-sity of Technology and the University of Zielona Góra.

FUTURE REWARDSThe program has four broad aims.

First, to improve the efficiency of co-firing, secondly to reduce pollutants (NOx, SO2 and CO2), thirdly to im-prove carbon capture and storage, and lastly to improve pre-combustion technologies.

One of the research programs, called ECOALBOILER (pronounced e-coal-boiler and not eko-boiler) focuses squarely on co-firing. This research program aims to improve efficiency and reduce maintenance in co-firing, while also reducing NOx emissions.

Investing in research and develop-

ment involves risks, as no one knows what future fuel mix will be profitable, but co-firing in particular faces uncer-tainties even in the short term.

The current proposed draft law aims to reduce the value of green certificates for co-firing by applying a correction coefficient of 0.3, down from the current 1.0. In five years, there may be no cer-tificate at all for producers of this type of power. Clean coal technologies too face an uncertain future. In the wake of the EU fiscal crisis, the investment plans of most clean coal projects have been slowed or shelved (see page 58).

“When I talk to industry, they tell me the proposed renewables law will sub-stantially lower their investments in biomass co-firing R&D projects,” said Agata Hinc, managing director of de-mosEUROPA, a think tank.

It appears then that the POLe R&D will likely be in for a redefinition of its role and scope, once biomass co-firing support is reduced drastically.

However, EDF press spokesperson in Poland did not return our requests for comment, nor did the director of external affairs, who could not be reached by phone.

Critics charge that entire forests

are being clear cut to fuel co-firing

operations, and even when the bio-mass is harvested

sustainably, co-firing can produce

NOx emissions

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GREEN BUILDING

GONE MAINSTREAM

From Ghelamco to UBM, Jones Lang LaSalle to DTZ, everyone’s jumping into sustainable property. How long before non-certified

properties will be the odd ones out in the Warsaw skyline?

l P 3 8 Te a c h i n g t e n a n t s a b o u t g r e e n l P 4 2 S h o p p i n g ’ s n e w e c o - c l o t h e s

l P 4 4 G r e e n b u i l d i n g d i r e c t o r y l P 5 0 G r e e n s h e d s l P 5 2 W h a t ’ s i n a g r e e n

b u i l d i n g l P 5 4 S u s t a i n i n g v a l u e l P 5 6 W a i t i n g f o r t h e m a r k e t t u r n a r o u n d

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C O N T E N T S


TEACHING TENANTSABOUT GREENLATE LAST YEAR, Warsaw Finan-cial Center, an office skyscraper in the center of the Polish capital made

headlines after its managers decided that enough is enough when it comes to em-ployees coming to work by bike.

In the eyes of the managers of the building, home of such prestigious ten-ants like the World Bank, commuting to work by bike didn’t exactly live up to the building’s alleged prestigiousness.

Following the angry reactions of bike commuters, including lawyers from white shoe law firms leasing space in the building, the management tried to defend the decision, dressing it up as a means to address security issues. But a conclusion that bikers are an unwel-come sight around WFC was hard to avoid. The key to understand the build-ing management’s approach to bikers could be the fact that WFC lacks a green certification, in which points would be awarded for allowing access to the premises via environmentally friendly means of transport.

Few months later, across town, Mar-cin Kotlarek, partner at Boston Con-sulting Group (BCG) is on his way

Developers have well em-braced the sustainability trends in real estate. It’s the tenants that now need to go up a steep learning curve of how to benefit of green buildings, because “green” won’t do every-thing for you.

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O F F I C E P R O P E R T Y

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to work - by bike. BCG is one of the tenants of LEED Gold-certified Zebra Tower office complex in the center of Warsaw, delivered in 2011. The US-originated building certification stan-dard, LEED stands for Leadership in Energy and Environmental Design.

For a global company with American roots such as BCG picking up a new office that comes with a green certificate was no-brainer. It’s part of the corpo-rate policy, even if BCG doesn’t make pretence that it’s all that crucial.

“We have a global initiative called BCG Green. Where possible worldwide we are going for green office build-ings,” said Justyna Wisławska, the BCG office manager who was in charge of the company’s relocation. According to Ms. Wisławska, however, the eco-features of a building come only after the good old real estate mantra of “lo-cation, location, location”.

Kamil Tyszkiewicz, senior property negotiator with CBRE, a real estate services firm, is not surprised at big, international firms asking if their po-tential seats hold a green certificate. This question though is now becoming common also for smaller, even local, companies looking to relocate.

“This is just the beginning. There is lots of explanation and education to do still. It’s safe to say that at this point de-velopers are ahead of tenants when it comes to green buildings. Few years ago, global players such as Skanska started delivering green office projects and this is now becoming a standard, at least in

the major cities. But the tenants are learning,” Mr. Tyszkiewicz said.

A recent report by Jones Lang La-Salle, another property services firm, shows that currently 670,000 sqm of office space in the CEE region has been certified. The JLL’s study shows that about 400,000 sqm of office space in the development pipeline in Warsaw is currently under revision for a green certificate, making the capital of Po-land into a regional leader in sustain-able construction. Developers are thus pre-empting the need to live up to the upcoming market challenges, as the EU directive on energy performance in buildings states that all buildings delivered after year 2020 should be zero energy buildings.

“The certification has an impact on the cost of the project, but developers know how to live with that. They won’t raise the rent just because of the cer-tificate. For them, the certification poses a chance to attract a major ten-ant, who understands the significance of having a green office. It’s an added value thing,” CBRE’s Tyszkiewicz said.

The foreign consultancy firms are known for two things: they attract lots of talent and they work crazy hours. It is not uncommon to see a partner leaving the office well after midnight, while the early birds may show up be-fore seven AM. Therefore comfort and convenience at the office is a must. BCG’s previous office was in a non-certified building. Do the tenants feel the difference? “Truth is that our em-ployees were doing fine also in the former premises. It’s not like you stop getting headaches all of a sudden,” said

BCG’s Wisławska. “The tenants should know one thing

though: a green building won’t work miracles. It’s not enough to be there and things will start happening. The tenants need to know how to take an advantage of the building. It’s a two-way street,” CBRE’s Tyszkiewicz said.

The Rondo 1 building in Warsaw was delivered in 2006, shortly before the certification craze kicked in. The owner of the landmark building, a fund managed by Australian invest-ment group MGPA, decided it’s not too late for some changes and in 2011 the building became the first skyscrap-er in Europe to be awarded the LEED Gold certificate for existing buildings. Rondo 1’s energy mix consists in 10 percent of wind power, 61 percent of waste is segregated for recycling and the water use has decreased 30 percent. Some 63 percent of the people working in the building commute to work by public transport or bikes.

MGPA goes some length to keep raising awareness of environmental issues with the people working in Rondo 1. They can learn more about the changes in the building from the specially dedicated newsletter distrib-uted on the premises. Further on, those rushing to get to the office are kindly asked for a little bit more pa-tience, as signs explain that the eleva-tor will need few more seconds than usual to arrive, but it will carry more people, increasing energy savings.

The approach seen in Rondo 1 is

“THIS IS JUST THE BEGINNING. THERE IS LOTS OF EXPLANATION AND EDUCATION TO DO STILL. IT’S SAFE TO SAY THAT

AT THIS POINT DEVELOPERS ARE AHEAD OF TENANTS

UP A STEEP EDUCATION CURVE

THE TENANTS’ DISCONNECT

WHEN IT COMES TO GREEN BUILDINGS” Kamil Tyszkiewicz

Commerzbank Tower in Frankfurt is the world’s first “Green Building”

First building in Poland certified under BREEAM (Trinity III in Warsaw, by Ghelamco)

All new buildings in Poland to use at least 13% renewable energy

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spreading. An increasing number of firms is looking to adapt their office space to higher environmental stan-dards even if the building itself lacks certification. Appropriate certificates are available just for particular office space in a building. For example, the Deutsche Bank branch in the Deloitte House office building in Warsaw has acquired its own LEED certificate, in-dependently from the building.

Jones Lang LaSalle, while itself preaching the benefits of going green, remains headquartered in a non-cer-tified building. However, the company used the planned renovation of its Warsaw premises as an opportunity to upgrade the office space at Saski Crescent, a 2003 building owned by

Austrian real estate investor CA Immo.

“We are doing everything in our of-fice by the book, but we don’t have a certificate. It’s up to us if we decide to go for the paper, as we are following the requirements already,” said JLL’s co-head of tenant representation ser-vices Julita Spychalska.

Bikers aren’t feared of around here as not only do they have infrastructure for their bicycles but also can take showers on arrival to work. The 150 people who work at JLL’s office have all been internally trained about the proper use of the improved office space. “We are now all in the process of learning. With or without certifi-cates, there’s a major shift. We’re com-ing to an understanding that buildings are to serve people. Not the other way around,” Ms. Spychalska said.

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ADOPT, ADAPT, IMPROVE

As the European Union member state, Poland has had to embrace many environ-

mental regulations. Renewable energy, waste management, curbing CO2 emissions have all been developing but not without problems. A sector that seems to have adopted the environ-mental agenda unconditionally and to the benefit of all stakeholders is commercial property. In but a few years, the environmental certification of buildings, mostly office, has left the fringe and is now about to go mainstream and the only way to consider one’s projects truly A-class and premiere investment products. The progress is fast. As soon as some companies have adopted certification systems like BREEAM or LEED, others, like Skanska Property Poland, are taking it to a higher level by working on ‘deep green’ developments. According to Waldemar Olbryk, managing director of Skanska Property Poland, this is not only about moving ahead of the competition, using grey water or achieving zero net energy use. “Deep green means applying the environmental thinking and education to everything about a commercial build-ing, for example teaching property managers how to manage a green building and tenants how to use it so that the sustainability aspect isn’t lost in the process. It’s analyzing in detail how ‘green’ works,” Mr. Olbryk told Cleantech.

From fringe to mainstream

*sqm **Obtained Green Building Certification (Capital Cities)

VOLUME* OF EXISTING OFFICE BUILDINGS**

250,000200,000150,000

50,000100,000

0Prague

LEED BREEAM

Warsaw Bucharest Budapest

CERTIFIED OFFICE BUILDINGS UNDER CONSTRUCTION*

*sqm

250,000300,000350,000

400,000

200,000150,000

50,000100,000

0Prague

LEED BREEAMWarsaw Bucharest Budapest



SHOPPING’SR E T A I L P R O P E R T Y

NEW ECO-CLOTHES

In retail developments, the shopping crowd won’t

know that sustainability measures are at work. Re-

tail developers are look-ing at certification more

and more often, however, because that’s what their important tenants want.

B Y W O J C I E C H K O S C

POLES LOVE SHOPPING. As the European economy struggled after the Lehman Brothers-initiated cri-

sis, Poland was the only economy to post growth, which owed a great deal to the crowds in the shopping malls. Retail property developers have even ventured to third-tier towns, defying the notion that there’s little to be found in the local wallets.

Consumerism that has propped the Polish economy is, however, viewed as clashing with principles of sustainable living that’s hard to marry to the short term profitability, which reigns in the retail sector. By-products of the con-sumerist lifestyle, like heaps of plastic packaging are a problem in a country that landfills most of its waste, too.

The retail development sector doesn’t have outstanding leaders, spearheading the process of greening the retail prop-erties. Nonetheless, retail is now becom-ing the second commercial property sector, after office, where greening the projects appears to be gaining ground.

“Corporate occupiers and investors

have already developed strategic policies which are inclusive of green design and management. This has brought about corporate obligations which must be met. The retail sector is still focussed on short to medium term profitability, but certi-fication of retail projects will gather mo-mentum as some of the larger retailers start to demand certification as a mini-mum,” said Andrew Frizell, associate director, project & building consultancy at DTZ, a property services company.

At the moment, there are several re-tail projects under development under-going the process of green certification. These include projects from Spanish developer Neinver, CBRE Global Inves-tors, or BBI Development. BREEAM is the certification of choice.

Retail-oriented investors are also certifying their assets, as evidence by BREEAM In-Use for malls owned by funds like IVG Development, GE Cap-ital Real Estate or Pradera Europe.

Cezary Kopij, project manager at Nein-ver responsible for the certification of the company’s retail developments, confirms that once key retailers like Zara or H&M have introduced sustainability measures in their business, it has translated into pressure on developers to do so as well. Zara and H&M are one of the most ubiq-

uitous retailers across Poland; hardly any mall can do without them.

Beyond the tenant-induced drive to sustainability, according to Mr. Kopij, the certification is a tool that before long will help compare retail projects against benchmarks of energy or water use.

“Going for the certification also makes it easy to optimize your project’s performance. Otherwise, we’d have to spend time and resources seeking the best ventilation or lighting systems out there. Qualifying for a certificate, we have clear guidelines on what we need to have in order to achieve a certain level of performance,” he said.

“Green design and certification will only gain further momentum. Con-sumers will always care more about cost than any other factor, but there may be a situation where retailers are incentiv-ised through energy efficient design and occupation,” said Mr. Frizell.

From the customers’ point of view, not much will change: a shopping des-tination will be a shopping destination. “The most work to reduce projects’ en-vironmental can be done constructing it and with the tenants. For shoppers, we can reduce water use and increase energy efficiency in toilets, but that’s about it,” Mr. Kopij said.

Malls are local gravity centers in Poland, but not yet leaders in sustainability

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ATRIUM IDeveloper: SkanskaLocation/Address: Rondo ONZ, WarsawTotal GLA (m2): 17,000Green Building Certification: LEED Platinium, EU Green BuildingPlanned completion: Q1 2014Financier: SkanskaContractor: SkanskaConsultant: not available

l geothermal cooling and heatingl double facade with external blinds l use of tripled glazed windows to reduce heat lossl photovoltaic panelsl purchase of electricity from renewable

sourcesl modern air conditioning system based on cooling beamsl energy saving lighting system (LED lighting and motion sensors)

GREEN FEATURES

CHMIELNA 25Developer: LHI GroupLocation/Address: Chmielna 25, WarsawTotal GLA (m2): 5,990 (including 3,806 of office)Green Building Certification: LEED GoldPlanned completion: Q2 2013Financier: Bank Zachodni WBKContractor: BudnerConsultant: OVE ARUP & PARTNERS INTERNATIONAL, BIT ITALPOL, AECOM

l green roof to reduce heat island effectl green waste managementl reduction of water usel reduce energy usel regional materials

l bicycle storagel charging stations for electric carsl rainwater harvesting

GREEN FEATURES

&

In association with Savills, Cleantech showcases the upcoming certified office space in Poland. Apart from basic data on development, the directory lists main green features

of each building that could weigh upon companies' decisions to lease space.

DIRECTORYGREEN BUILDING


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FLANDERSBUSINESSPARKC,D,EDeveloper: Liebrecht & wooDLocation/Address: Flisa 6, WarsawTotal GLA (m2): 21,602Green Building Certification: BREEAM very good/excellentPlanned completion: Bldg. C 2013; Bldg. D & E 2014Financier: not availableContractor: not availableConsultant: not available

l double glazed windows with increased ratio of thermal insulationl thicker walls for better thermal insula-tionl 4-pipe heating/cooling systeml reduction of CO2 emissions by 26%

l individual lighting control systeml electric car charging pointsl dual-flush toiletsl waste sorting;l materials with ecological certificates used to construction and finishings

GREEN FEATURES

ENTERPRISEPARKIBUILDINGSA&B;PHASEIIBUILDINGCDeveloper: AVESTUS REAL ESTATELocation/Address: Powstańców Wielkopolskich 13D; 13E; 13C, KrakówTotal GLA (m2): bldg A & B: 15,165; bldg C: 14,000Green Building Certification: BREEAM very goodPlanned completion: A & B: Q3 2012; C: Q3 2014Financier: A & B: Raiffeisen Bank; C: not availableContractor: A & B: Eiffage Budownictwo Mitex; C: not availableConsultant: A & B: T&T; C: not available

l green terracesl energy efficient lightingl bicycle storgae with lockers and showersl 40 percent of the terrain around

Enterprise Park will be green space

GREEN FEATURES

EUROCENTRUMOFFICECOMPLEXDeveloper: Capital ParkLocation/Address: Al. Jerozolimskie 124/134, WarsawTotal GLA (m2): 65,800Green Building Certification: LEED GoldPlanned completion: June 2014Financier: Pekao SAContractor: ERBUD SAConsultant: ARUP

l connected to public transportl bicycle racksl 22 electric car charging pointsl rainwater for toilet flushing and to water plantsl water-efficient bathroom faucetsl no maintenance landscaping

l energy efficient HVAC systems & lightingl energy saving technologiesl using local/regional materials in the design l waste collection with recyclingl green internal atria creating a friendly microclimate l natural greenery inside the building

GREEN FEATURES


GREENCORNERDeveloper: SkanskaLocation/Address: Chłodna 52/54, WarsawTotal GLA (m2): Bldg. A 14,700; Bldg. B 13,800Green Building Certification: LEED Platinium, EU Green BuildingPlanned completion: Q4 2012Financier: SkanskaContractor: SkanskaConsultant: not available

l optimal energy use thanks to windows and facade with high insulation param-etersl energy recovery system from office to heat the garagel excellent access of daylight

l storm and grey water use to flush toiletsl 6 power supply sources for electric carsl energy saving lighting system controlled by motion sensors in common areasl use of regional, recycled and low emit-ting materials

GREEN FEATURES

GREENHORIZONDeveloper: SkanskaLocation/Address: Pomorska 106, ŁódźTotal GLA (m2): Bldg. A: 17,940; Bldg. B: 13,350Green Building Certification: LEED Gold, EU Green BuildingPlanned completion: Bldg. A: Q3 2012; Bldg. B: Q2 2013Financier: SkanskaContractor: SkanskaConsultant: not available

l energy-efficient lighting systeml adiabatic air humidifiersl efficient air-condition based on fan-coilsl natural ventilationl use of warm air from offices to heat the

garagel use of regional materialsl waterless urinalsl parking space for bicyclesl showers and changing rooms

GREEN FEATURES

GDANSKIBUSINESSCENTERDeveloper: HB REAVIS POLANDLocation/Address: Inflancka 3, WarsawTotal GLA (m2): 47,000 (1st phase)Green Building Certification: BREEAMPlanned completion: Q2 2014Financier: EquityContractor: HB REAVIS CONSTRUCTION PLConsultant: “Taam” Tadeusz Pajor

l powered only with renewable energy (from wind)l 33 charging stations for electric cars

GREEN FEATURES

BUILDING 1

BUILDING 2


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GREENWINGSOFFICESDeveloper: OKRE DevelopmentLocation/Address: 17 Stycznia, WarsawTotal GLA (m2): 10,810Green Building Certification: BREEAM very goodPlanned completion: May 2014Financier: confidentialContractor: confidentialConsultant: SECO Polska

l water consumption monitoringl zoned HVAC & lightingl noise level in the offices 35 dBl environmentally firendly finishing materialsl appropriate thermal comfort levels

l cyclist rooms with racks, lockers and showerl optimum access to daylightl double air filtration, air humidification in winter;l green landscaping inside and outside

GREEN FEATURES

GREENOFFICEDeveloper: Green OfficeLocation/Address: ul. Czerwone Maki 82-84, KrakówTotal GLA (m2): 4,700Green Building Certification: Green BuildingPlanned completion: 3rd phase, 2012Financier: PKO Bank PolskiContractor: not availableConsultant: not available

l none specifiedGREEN FEATURES

GREENTOWERSBDeveloper: SkanskaLocation/Address: Strzegomska 36, WrocławTotal GLA (m2): 12,000Green Building Certification: LEED Gold for Core & Shell, EU Green BuildingPlanned completion: February 2013Financier: SkanskaContractor: SkanskaConsultant: not available

l adiabatic air humidifiersl efficient air-condition based on fan-coilsl natural ventilationl use of regional materials

l parking space for bicyclesl use of warm air from offices to heat the garage

GREEN FEATURES


MALTAHOUSEDeveloper: SkanskaLocation/Address: Ks. Abp. Antoniego Baraniaka, PoznańTotal GLA (m2): 15,530Green Building Certification: LEED Platinum, EU Green BuildingPlanned completion: Q3 2013Financier: SkanskaContractor: SkanskaConsultant: not available

l energy efficient facadel water efficient toiletsl air conditioning with humidifiersl use of recycled and low VOCs (volatile organic compounds) materials

l energy efficient lighting systeml rainwater used for watering plantsl 8 power supply sources for electric cars l natural ventilation

GREEN FEATURES

MIASTECZKOORANGEDeveloper: BOUYGUES IMMOBILIER POLSKALocation/Address: Aleje Jerozolimskie 160, WarsawTotal GLA (m2): 43,700Green Building Certification: BREEAM Very GoodPlanned completion: Q3 2013Financier: QATAR HOLDINGContractor: KARMAR, subsidiary of BOUYGUES BATIMENT INTERNATIONALConsultant: HILL INTERNATIONAL, Stanislaw FISZER, OVE ARUP, SECO Polska

l 30 percent less energy use than typical class Al high efficiency HVACl heat recovery systeml high efficiency lighting

l internal natural garden

GREEN FEATURES

KONSTRUKTORSKABUSINESSCENTERDeveloper: HB REAVIS POLANDLocation/Address: Konstruktorska 11, WarsawTotal GLA (m2): 48,000Green Building Certification: BREEAM very goodPlanned completion: Q1 2013Financier: EquityContractor: HB REAVIS CONSTRUCTION PLConsultant: CDI

l 100 percent of the energy from wind farmsl 33 charging stations for electric cars

GREEN FEATURES

FLOOR PLAN CONFIDENTIAL


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QUATTROBUSINESSPARKDeveloper: Buma InwestorLocation/Address: Al. Gen. Bora-Komorowskiego 25, KrakówTotal GLA (m2): 12,200Green Building Certification: BREEAM very goodPlanned completion: 2013 (3rd phase)Financier: Bank Pekao SAContractor: not availableConsultant: not available

l none specifiedGREEN FEATURES

PLACUNIIDeveloper: Liebrecht & wooD, BBI DevelopmentLocation/Address: Puławska 2, WarsawTotal GLA (m2): 41,000 office space; 15,500 retail spaceGreen Building Certification: BREEAM very goodPlanned completion: October 2013Financier: confidentialContractor: WarbudConsultant: not available

l water leakage sensorsl daylight controll air quality monitoringl noise level in the offices 35 dBl after dark lighting control

GREEN FEATURES

POINTWESTDeveloper: DANTEXLocation/Address: Wolska 153, Warsaw Total GLA (m2): 14,400Green Building Certification: BREEAMPlanned completion: Q2 2014Financier: to be chosenContractor: to be chosenConsultant: to be chosen

l environmental friendly designl energy saving appliances

GREEN FEATURES


TO DATE, ONLY ONE warehouse/logistic space developer, PointPark Properties (P3), has decided to go

for green certification.P3 is going for the BREEAM (Build-

ing Research Establishment Environ-mental Assessment Method) Very Good standard for a logistics and warehouse project under development near Poznań. The project offers close to 200,000 square meters of warehouse space. There’s also more than 131,000 sqm of zoned land for further build-to-suit developments. Key customers cur-rently include Hager, DAMCO, JMD, ND Poland, CEVA, and PF Concept.

The certification process was carried out by the Polish branch of WSP Envi-ronment & Energy, an environmental and sustainability consultancy.

P3’s country manager in Poland Craig Maguire says that in the competitive market, certification is going to help win

clients whose CSR policy involves re-ducing the environmental burden of their business. With that mind, P3 went on to certify its Poznan project.

Mr. Maguire points out, however, that going into extreme sustainability mea-sures wouldn’t quite work on the Polish market. Indeed, a UK industrial devel-oper Gazeley that took sustainability in the industrial property sector to a very high level in the UK, has failed to estab-lish business in Poland.

“We want a product that’s green, but not over-specified. We wanted to invest, but invest on a commercial level. The sustainability aspects of your buildings need to be a compromise between how you can cater to clients’ environmental-ism and how you can be competitive on the market,” Mr. Maguire said.

GREEN SHEDSWarehouse and logistics developments take quite

a toll on the environment. They cause drastic land-scape change due to the

size of their footprint. They bring huge traffic to local

communities. Yet in Po-land, few of these develop-ments choose to go green.


I N D U S T R I A L R E A L E S T A T E

SUSTAINABLE... BUT NOT TOO MUCH


Paweł Warda, head of project man-agement team CEE at Jones Lang La-Salle, a real estate services firm, offers a more skeptical view on certification in the sector. He explains why it’s yet to sweep across the sector and why de-velopers are likely not to go to big lengths to green their projects.

“It’s true that in terms of land use, these properties have a big impact, but other than that, they use less energy than office properties, they’re basically simpler constructions, and fewer peo-ple work in them,” Mr. Warda said.

Perhaps certifying logistic projects would be common in a different mar-ket, Mr. Warda contends. Now, how-

ever, the market is the most competitive it’s been in years. “Logistics and ware-housing projects are very similar to one another. Their specifications are very standardized and it’s only a few gen-eral contractors who are building them. So in market terms it’s an all-out fight for every eurocent of the rent. It doesn’t leave developers much room to play with extra features like certification,” Mr. Warda said.

“Tenants are also less demanding in terms of environmentalism in the ware-house and logistics sector unless they’re companies that have written it into their CSR policies, but, unlike office tenants, there are fewer companies like

that looking for industrial space,” Mr. Warda said.

Mr. Maguire says, however, that the time’s on his side. “As time passes, [sus-tainability features] will be asked for by banks, valuers, institutional investors, as something that’s acknowledged to be preferred,” Mr. Maguire said.

Mr. Maguire recognizes the sector’s current limitations in terms of sustain-able property development but says that certifying one’s projects isn’t the only way the industrial real estate sector can benefit from adopting environmental solutions. “In the Czech Republic, we teamed with a solar energy developer Solops and made rooftops of our build-ings an income producing asset by rent-ing them to install PV panels,” he said.

With 6.93 million of square meters of existing industrial real estate in Po-land, there’s roughly about the same amount of rooftops strong enough to bring extra income to owners. Drawing on P3’s Czech experience, Mr. Maguire believes that this is where P3 will edge ahead of other developers in Poland. “We’re working to attract solar instal-lations developers to our properties in Poland as well,” he said.

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The Polish market of industrial/warehousing development is facing a considerable gap in supply. Developers are likely to react to this situation

soon and roll out more on-spec projects that have been stifled so far due to banks’ restricted financing. But there’s little talk about certifying those projects.

Supply gap looming

INDUSTRIAL SPACE DELIVERED AND UNDER CONSTRUCTION*

*SOURCE: Jones Lang LaSalle

1,000,00010,0%

1,200,000

12,0%

1,400,000

14,0%16,0%18,0%

800,0008,0%600,0006,0%

200,000 2,0%

400,000 4,0%

0 0,0%2005 2006 2007 2008 2009 2010 2011 H1 2012

Space under construction, pre-leased (sqm)Space under construction on-spec (sqm)Space delivered (sqm)Vacancy rate (%)


WHAT’SIN A

S U S T A I N A B I L I T Y F O C U S

GREEN BUILDINGEurocentrum, an office project in Warsaw, is to receive LEED Gold Shell & Core cer-tificate. Capital Park, the developer, has chosen to capture rainwater, reflect the summer sun and separate trash. These are just the details. The building functions as a system: green roofs capture rain, but they also reduce heat gain during the summer.

Mechanical ventilation with high level of heat

recovery

Air conditioningwith “free cooling”

Finishing materials with low level of volatile organic compounds -quality of indoor environment

Internal system with movement sensors

Lightning system with movement sensors

Public transport connections - railway,

local trains

Façade with thermal insulation parameters:U=1,3W/sqm, g<=34%

Outdoor greenery doesnot require watering

Facilities for cyclists- 162 parking places for bicycles and25 changing rooms and showers

Public transport connections.Buses, trams

22 charging pointsfor electrically powered vehicules

GREEN BUILDING

Most office buildings in War-saw constructed over the last 5 years would be considered

as ‘greener’ buildings than the earlier developments. They are built using the latest technologies and more of them are designed for and are awarded with BREAM or LEED certificates.

However the overall office stock available in Poland consists on average of older buildings that would result in a more a significant environmental impact or carbon footprint. Poland relies relatively heavily on coal as an energy source and has generally op-posed more stringent climate policies and targets than those already agreed. Poland will eventually need to adjust and push ahead with changes, how-ever. Especially energy measures that save money. This will also further en-courage the trend of environmental awareness in property development. Taking Great Britain as an example, non-domestic buildings make up 18% of the UK’s total carbon footprint, and it is estimated that the sector can de-liver at least £4 billion in energy sav-ings for the British economy by 2020.

“Installing new equipment, such as lighting, heating, ventilation and high efficiency air conditioning can hugely reduce energy bills, as well as making a property more commercially attrac-tive. For example, a typical retail or-ganisation could cut their lighting en-ergy bill by up to 70% through installing new lighting fittings and effective con-trols,” said Brian Burgess, Managing Director at Savills Poland. There are a wide range of options when it comes to energy efficiency, and it is not always apparent where invest-ment can provide the best returns. Oc-cupiers need to examine everything from the fabric of the building to be-havioral issues, such as encouraging staff to save energy. However they are not always sufficiently well informed to

act as experts on all of these areas.

Where finance is provided for capital expenditure then savings on energy bills often entirely offset the cost of the finance payments, or can even make the investment cash positive from day one. Specialist consultancies and advisors help occupiers to realise energy ef-ficiency savings by:lAssessing where energy savings can be delivered, giving advice on technol-ogy and timeframes for ROI,l Providing access to a trusted pool of suppliers, matching customers with the right skills at the right price.l Getting the project off the ground with an energy efficiency financing scheme

A lot of attention is given to how the indus-

try needs to cope with emission reduction and

energy efficiency re-quirements, but it’s the

property sector that has just as huge potential

to live up to low-carbon trends and positively

influence the economy.

Savills: environmental awareness in property business

A D V E R T O R I A L

B R I A N B U RG E S S, S AV I L LS

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Savings on energy bills can

make the investment cash

positive from day one.

Where finance is provided for capital expenditure then savings on energy bills often entirely offset the cost of the fi-nance payments, or can even make the investment cash positive from day one.


THERE ARE 150,000 square me-ters of certified green office space in Warsaw, and about 400,000

square meters of such space under de-velopment. The new volume exceeds the current volume by a factor of al-most three. But does this surge in de-velopment volume mean the trend has gone mainstream?

Some developers seem to think so. For these companies, there is every reason to certify their buildings BREE-AM or LEED because they think it will increase the projects’ attractiveness to investment funds who will one day be their owners.

Investment funds aren’t going to buy certified buildings that don’t match other important criteria like location or lease-quality. Projects are more likely to achieve a higher level of cer-tification, however, if they are located near public transport stops, which has the added benefit of decreasing the pol-lution of air in the city. Also, tenants that are deliberately singling out green office space to discuss lease terms tend to be perceived as more attractive cli-ents on the market.

All of these attributes - location, lease-quality and energy performance - add up along the value chain to pro-duce an attractive investment product. This is particularly true today, when

certified properties are becoming main-stream in the development pipeline, although still some years away from becoming standard. That means that now, releasing a certified office build-ing, makes it stand out in the crowd of other, mostly non-certified, properties.

“It’s taken a while to defeat the once-common notion that the Polish market isn’t ready yet for sustainable buildings, but as the society in general adopted environmentalism as part of everyday life, it turned out that the market was actually expecting us to turn in green property products,” Waldemar Olbryk, managing director of Skanska Prop-erty Poland told Cleantech.

According to Martin Erbe, head of international real estate finance for Central and Northern Europe at Hela-ba, a German real estate bank, green-certified properties attract the most coveted kind of institutional buyer, so-called core funds. “Core funds are look-ing for low-risk, long term investments

SUSTAINING

Certified office properties are edging out non-certified office properties in terms of investment attractiveness. The next step should be bringing valuation methods up

to par with this new situation on the market.


G R E E N O F F I C E S

BALANCE SHEETS GONE GREEN

VALUE

and the green certification gives them all that,” Mr. Erbe said.

Leases are the most important item on the balance sheet of any office build-ing. According to a report on certified commercial real estate in Poland and CEE compiled by Jones Lang LaSalle, a real estate services firm, green buildings offer numerous points of mutual ben-efit between the landlord and the ten-ants in a process called “green leasing.”

“Properly balanced green leases bring benefits for both landlords and tenants.

“THE SUSTAINABILITY ASPECT OF COMMER-CIAL PROPERTY IS BECOMING A QUANTI-

FIABLE COMMODITY” Waldemar Olbryk, Skanska


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Conditions may set out or include the implementation of a recycling strategy, energy reduction targets, monitoring data and the agreement by both the tenant and landlord to meet regularly to achieve targets for energy consump-tion,” the report said.

Investment-wise, green leases are go-ing to translate to better net operating income than in the case of standard com-mercial leases. “Green leases require par-ties to act responsibly in terms of the most efficient use of materials and re-sources and result in lower operating costs,” the JLL report said.

There have not yet been enough transactions involving certified green office buildings to draw conclusions about an upside due to better leases,

less maintenance or reduced energy cost. Players in the market seem con-vinced, however.

“Certified buildings are more attractive for investment funds because it’s stable and valued brands that tend to lease space there. Even more so when tenants’ policy is to lease space only in green buildings. It gives the funds stability and security” said Peter Obernhuber, managing direc-tor of the developer UBM, which is work-ing on a LEED-certified Poleczki Business Park in Warsaw.

“Construction of green buildings involves materials of higher quality that are more technologically advanced. The buildings’ lifespan over which they re-tain their quality increases,” Mr. Ober-nhuber added.

According to Sylwia Filewicz, devel-opment director at Capital Park, a de-veloper at work on Eurocentrum, War-saw’s largest green office complex, cer-tified buildings will compete with one another before long. “Certification itself will not be enough,” Ms. Filewicz said.

“Beyond the basics that all develop-ers will have to address in order to cer-tify their projects, they will choose to apply individual solutions that could eventually make the difference for in-vestors. Different tiers of green build-ings will evolve, depending on their certification level or how advanced technological solutions to save water or energy will be,” Ms. Filewicz said.

As the volume of certified space grows, valuers will face the new market reality, according to Skanska’s Olbryk. “I think the sustainability aspect of commercial property is becoming a quantifiable com-modity. There is a discussion already of coming up with such valuation methods that would account for sustainability in buildings,” said Mr. Olbryk.

“Questions are common if a building is green and what the service charges or energy costs are. And if investors ask them, it’s clear that there’s impact on valuation,” he also said. “Non-certified buildings might see a slight drop in perceived attractiveness and thus in value,” Helaba’s Erbe said.

“Some in the industry argue that non-sustainable buildings will simply be available at a discount rate. Others [claim] that over time non-sustainable offices run the risk of increased obso-lescence. Risk premiums therefore will be lower in greener buildings increas-ing value. Meanwhile lower costs give a value add which can result in increas-ing net income for landlords,” the JLL report concluded.

VALUERS, LIVE UP TO NEW REALITIES

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The usual context of sustainable property development is that it saves tenants’ expensive energy

bills and that developers can sign environmentally-conscious firms for office or retail space. Is there more about green buildings?

Sustainability impacts the complete lifecycle of real estate and all aspects of property. Everything from location decision, insurability, financing, leas-ing, tenant build out, and property management. For example: location. It’s always the main driver in real estate, but sustainability adds another layer to it. Developers who want to be sustain-able need to assess their projects’ im-pact on location because the same building in two different locations could score very differently in terms of their impact. The location choice will differ if you take into account, for ex-ample, how much transport emissions your project will generate downtown, where there’s access by public transport, or away from the center where employ-ees will be commuting by cars mostly.

How far are we from investors’ preferring a certified building to a non-certified one of the same standard and location?

There’s no doubt that investors prefer green buildings. They’re definitely transacting for more than non green

buildings globally and here in Poland and CEE. What I believe that we’ll see more of is investors’ paying greater at-tention on the features and strategies that earned the certification, the ver-sion of the rating system the building was certified with. I also think that what’s missing from the Polish market is an understanding of the how and why a building achieved certification.

Why has certification mostly worked with office developments, and far less so with retail and industrial real estate?

The overall global tendency is that the sustainable building trends starts with office properties and only then moves on to retail and logistics. But surely there’s a disconnect in Poland

because retail and industrial sectors have hardly embraced developing prop-erties to green standards. With logistics it could be because these projects have to be cheapest possible and the sectoral perception is that going green is sub-stantially more expensive and will translate to higher rents that no one will want to pay. But it’s simply not true.

Where do you think the green trends in property development will go in the near future?

Green building will be the standard to which all property is designed, construct-ed, and operated at. Both of the leading rating systems in Poland, LEED and BREEAM, are updated continuously and require greater environmental perfor-mance. This will continue until we reach net zero energy balance and achieve close to a 100 percent recycling rate. Rat-ing systems will also become more local-ized to account for varying issues of, say, climate factors. Many municipalities and countries are incorporating green re-quirements of the rating systems direct-ly into local building codes and zoning. Finally, and specifically for Poland, I’m hoping to see the energy performance certificates get better and become a real tool ultimately helping assess value of buildings. That’s what these certificates are in the UK, but not in Poland, where they still lack substance.

WAITINGFOR THE

The bulk of the new office developments in Poland may be certified under BREEAM or LEED. Countdown is now on for the green properties

to reach critical mass and turn the market over. More sophisticated approach to certification will help, too.


S U S T A I N A B L E B U I L D I N G S

MARKET TURNAROUND

Devin Sailor is spokes-woman for RICS’

sustainability group and regional green

building certifaction-director at Colliers.

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for CCSLast hope

The European Union’s carbon capture and storage (CCS) demonstration program

is now delayed beyond the original dead-line of 2015. To make matters worse, the

program’s centerpiece, the PGE Bełchatów project, is lax on the financial side.


C A R B O N C A P T U R E A N D S T O R A G E


NOT ALL HOPE is lost for coal. If there was a way to combust the black rock and capture the result-

ing emissions underground, and not up in the air, two opposing camps might have something to agree upon: climate change activists and energy security pundits.

For a while, it seemed as if the Euro-pean Union’s demonstration program of carbon capture and storage (CCS) would provide the emissions-intensive industries with an alternative to costly CO2 cap-and-trade schemes, but how if industry is losing heart for the idea?

CCS is about CO2 emissions from burning fossil fuels being captured, transported, and ultimately pumped underground into geological forma-tions to be prevented from reaching the atmosphere, thus mitigating cli-mate change.

The EU prepared a testing ground for the technology in the form of so-called CCS demonstration projects across the bloc. The projects are to provide answers as to whether CCS could be an effective tool in reducing CO2 emissions. But it’s clear that

something has gone awry concerning these CCS testing grounds.

GERMANY, NO WAYA CCS project in Jänschwalde, Ger-

many, is now in considerable doubt, after its main partner, Vattenfall, de-cided to stop working on it.

Vattenfall quoted the “ongoing im-passe” in the German government’s work on establishing a law on CCS. The company was supposed to invest €1.5 billion in the project; without this money Jänschwalde is unlikely to be completed.

Financial woes plague the Polish CCS project in the PGE-operated lignite-fired power plant in Bełchatów, one of the biggest fossil fuel based power plants in Europe.

The project is now awaiting a capi-tal injection from the European Com-mission’s NER 300 program that will sell 300 million of CO2 permits in order to raise capital for renewable energy and CCS projects in the EU. According to the Commission, the Bełchatów CCS project is very likely to receive the funding, even if the

“Technologically, it might work, but is it going to work eco-nomically? There are analyses that

estimate CCS’ eco-nomic viability only once the price per ton of CO2 emis-

sion reaches €60; it is now at €7”

Professor Krzysztof Zmijewski

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maximum amount can be €300 mil-lion and cannot exceed half of the entire project’s costs. Another pool of capital, totaling €1 billion, is also available from the European Energy Programme for Recovery (EEPR).

PGE has said many times that, given the project is not going to yield profits, the company’s not going to finance it other than through external sources. Given that the combined resources of NER 300 and EEPR can only cover up to 30 percent of the EU CCS demon-stration program, companies will have to engage in political lobbying to secure public money for the purpose or dig deep in their own pockets indeed.

POLAND, THINK AGAINProfessor Krzysztof Żmijewski, an

energy expert, admits it’s precisely the political and economic, not techno-logical, context of CCS that should be discussed in the first place today.

“On one side there are enhanced oil and gas recovery techniques that use CO2 injections into oil or gas fields. It’s carbon sequestration, only done for oil/gas production in the first place. Play-ers in this field are all for CCS,” said Mr. Żmijewski.

“On the other side, there are demo projects like in Bełchatów, but we don’t know much about them. We don’t know if capturing and storing carbon dioxide underground in big quantities and for a long term is going to work,” he said. “Technologically, it might, but is it going to work eco-nomically? There are analyses that estimate CCS’ economic viability only once the price per ton of CO2 emis-sion reaches €60. It is now at €7,” Mr. Żmijewski said.

According to Mr. Żmijewski, the at-titude toward CCS in Poland is largely skeptical. “The difference is that some say it makes no sense, period. Others

say, that it’s good that it will be carried out because only then everyone will see clearly that it makes no sense,” he said.

WAIT A MINUTEAgata Hinc, managing director at

demosEUROPA, a think tank, has more confidence in CCS. “At the moment, the facts are that the CCS technology is seen by many as an effective tool in reducing emissions. But it has to be demonstrat-ed on a large scale before we will be certain that it can be used for commer-cial purposes,” Ms. Hinc said.

According to Ms. Hinc, PGE or Poland had better look into the possibilities of carrying out the Bełchatów project.

“With the current trajectory of the European energy and climate policy, it’s difficult to imagine better technol-ogy than CCS that would allow Poland to generate its energy from coal. But before it happens, CCS has to be much cheaper.” Ms. Hinc said.

Reversing direc-tions: will pumping

CO2 underground help keep coal in Po-

land’s energy mix?

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fundraisingFit for

B I O M A S S F I N A N C I N G

Biomass and biogas company Fiten is globetrotting to find PE funds to finance its development program.

B Y J O H A R P E R

THE INTEREST OF foreign inves-tors in Poland’s nascent biogas and biomass sector is expected to grow

on a scale comparable to other renew-able energy sectors. Polish energy firm Fiten is looking to raise PLN 250 mil-lion (€59.4 million) with a US private equity fund. A bit of private equity might start to prove up the market po-tential.

“We are talking with a dedicated PE fund in the US and with four energy companies in northern Europe, two of them from Germany and two from Scandinavia,” Fiten CEO Roman Pluszczew told Cleantech.

The group wants to raise the money over a three-year period to finance the construction of 10 biogas plants in Po-land, Mr. Pluszczew said. “We plan to go ahead [with the fundraising] in the first quarter of 2013, with the US fund providing most of the cash, but also with a share issue when we move onto the Warsaw Stock Exchange’s main market,” he added, saying that the com-pany was also in talks with banks to borrow PLN 10-12 million (€2.4-2.9 million).

The company has been trading on the Warsaw’s alternative market New-Connect since December 2011.

GROWING THE MARKET

Fiten has a market cap of PLN 48 million (€11.4 million) and in 2011 posted sales of PLN 260 million (€61.77 million) on EBITDA of PLN 4.4 million

(€1.04 million). Its nominated adviser is Noble Securities.

In 2005, there were 32 MW of in-stalled power in biogas installations in Poland. The sector has grown nearly four times since then. There were 184 biogas installations in Poland in the second quarter of 2012, totaling 119.41 MW of capacity and producing well over 350,000 MWh of energy annually.

The biogas market, which Fiten is luring investors to tap into, appears set for further growth. The proposed law on renewables, if it goes into effect from 2013, will establish a bigger support regime for most types of biogas instal-lations. In general, the value of green certificates coming from biogas plants will be boosted by correction coeffi-cients of 1.1-1.5 in 2013 and 1-1.425 in 2017 (see Indicators pp 9-10).

GREENFIELD RISKSHowever, most regional PE funds con-

tacted by Cleantech said they would hold off on entry into the sector at this stage. For example, IK Investment Partners,

MCI Management and Darby Private Equity all said they weren’t interested.

Not that there’s no interest from any-one whatsoever. “We are definitely in-terested in the broader space. The main driver for our interest is the fact that relative to benchmarks from Western Europe, Poland is hugely underpene-trated in terms of these technologies,” Matthew Strassberg partner at Mid-Europa, a mid-cap range PE fund fo-cused on the CEE region, said.

Mr. Strassberg said that the key issue for traditional PE firms participating in biomass/biogas in Poland was the relative scarcity of developed projects and hence the greenfield nature of the opportunity.

“Greenfield represents a much longer investment period and all the typical risks associated with a start-up. In this case, the key challenge is suitable sites. It can take several years to find a piece of land that can be dedicated to this kind of a project and to organize the issues around land ownership, zoning, planning and all the relevant consents,” Mr. Strassberg said.


“The main driver for our interest is the fact that relative to benchmarks from Western

Europe, Poland is hugely underpenetrated in terms of these technologies”

Matthew Strassberg, Mid-Europa

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PHOTO ESSAYB Y S Z Y M O N S Z C Z E S N I A K

Veturilo - what’s in a name?Marta Szczepanik, an associate at Noerr law firm, rides a Veturilo bike past the colored walls of Warsaw’s newest landmark, the Copernicus Cen-ter. “It’s a perfect way to get around,” Ms. Szczepanik said. In Powiśle, there’s plenty of dedicated bike paths, but not so in other parts of the city. Could Veturilo (“vehicle” in Esperanto) create the critical mass of cyclists this city has been waiting for? The Noerr Warsaw Office has organized and hosted a series of seminars for young, high potential Polish law graduates under the title “Mining, Oil & Gas Law Workshops.” Ms. Szczepanik has helped to organize these events.

Make-up and hair by Agata, agatahelena.com, using MAC


“The Polish market is very tough. There are no

incentives for electric or hybrid-friendly vehicles

despite their zero- or limited-CO2 emissions

and low cost of charging and maintenance”

Akadiusz Tomala, Mitsubishi Poland

Electric cars and their curbside charging sta-tions are still an uncom-mon sight. But with Poles warming up to the idea of driving electric and manufacturers planning to unleash new models onto the market this year and next, this might change.

B Y A L I C E T R U D E L L E P H O T O G R A P H Y BY S . S ZC Z E S N I A K

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WHEN KARL BENZ debuted the automobile in 1885, his four wheel-er burned a lot of gas to move a

short distance. Not much has changed. Automobiles still convert less than 25 percent of fuel to forward motion. The electric car promises a real break-through.

At present, only a few dozen electric vehicles (EVs) are rolling on Polish roads, although recent studies show that Poles are ready to embrace the technology. BNP Paribas, a French bank, conducted a 2012 survey shows that 53 percent of Poles would con-sider the option of going electric when buying a car.

That’s more than the French or the British (43 and 30 percent, respective-ly). Another 2012 survey, conducted by pollster TNS Polska on behalf of Renault, shows that 88 percent of Poles believe that electric vehicles are the future of motoring.

Experts are also optimistic about the market’s prospects. “The future belongs to EVs,” said Wojciech Drze-wiecki, head of automotive research institute Samar.

Still, the numbers are lacking strength. According to Samar, 36 EVs were registered in Poland in 2011, and

27 in the first seven months of 2012 (see table).

Vitaly Belskiy, senior consultant for automotive and transportation at Frost & Sullivan, a consultancy, is just as bull-ish about EVs. His firm sees the Polish market growing as much as 187 percent over the next five years.

Admittedly, a low-base effect is at play. And despite Poles’ apparent en-thusiasm for greener cars, there are still many serious obstacles to a Polish EV boom. Those include high prices, low level of infrastructure, and lack of gov-ernment incentive.

ENTER THE E

When firm e+ introduced a lease and rental offer of electric cars in Warsaw in May 2011, the company expected to expand rapidly into 13 different ag-glomerations throughout the country. A year later, e+ has only 14 cars and 15 charging stations in Warsaw.

But e+ CEO Katarzyna Siekowska is optimistic. “The initial interest was just an effect of novelty and we had to veri-fy our development plan. We under-stood the market will not develop steadi-ly, but will get there upon milestones. Our expectations regarding the numbers of charging points and the number of

(boogie woogie woogie)Electric

It’s

users have not yet changed much, because we are convinced that in a very near future some car fleet operator will go for EVs and will order for example 100 electric cars. This will make a huge impact on the market,” she said.

Mistubishi, one of three firms to have launched EVs in Poland since 2011 (the other two are Peugeot and Citroën), has only sold 23 i-Mi EVs so far. Grzegorz Sokalski, B2B Direc-tor at Peugeot Polska says that seven Peugeot iOn cars so far this year and expect to sell 12 by year end.

“The Polish market is very tough. There are no incentives for electric or hybrid-friendly vehicles despite their zero- or limited-CO2 emissions and low cost of charging and maintenance,” said Arkadiusz Tomala, managing director at Mitsubishi Poland, adding that the firm’s plans for 2012 are “not too aggres-sive and will be fitted to market reality.”

TOO EXPENSIVEWith no government incentive in place

and Polish living standards still lagging behind Western Europe, the higher priced EV is problematic. The EV mod-els currently available in Poland hover around PLN 150,000 (€37,000), about two or three times as expensive as a ve-

hicle running on gas or diesel. That’s just too high, according to Mr. Drzewiecki.

Although the higher prices of EVs are a strong deterrent to sales, their impact would be significantly reduced if charging infrastructure was devel-oped, according to Mr. Belskiy. The web portal ecomoto.info lists a total of 76 outlets rated at 230V installed across the country.

The good news is that among the new models set to arrive on the market some will come with lower price tags and offer a wider range of EV types, including plug-in hybrids.

French manufacturer Renault’s Flu-ence Z.E. and Kangoo Z.E. are set to reach the Polish market first, in Sep-tember this year. The cars plan to retail for about PLN 109,990 and PLN 79,900 (€27,000 and €20,000), respectively.

CHARGE ME UP!The Renault models come with a

battery-charging device that can be connected to a power supply at home

or at the office. The charging equip-ment, named Wall-Box, is supplied by utility RWE. RWE also operates 12 charging stations in the capital.

Other models, including the Opel Ampera, Mitsubishi Outlander PHEV and Nissan Leaf are expected in 2013. China’s BYD e6, which is still await-ing EU approval, might join the com-petition as well.

The new models promise greater battery life – up to 500 km (Ampera) and 800 km (Outlander PHEV) – which may help to break through a tenacious psychological barrier with regards to EVs.

Like other car buyers around the world, Poles are reluctant to trust the current generation of EVs’ battery life of around 150 km, even though studies have shown that the average daily trip in Poland is only around 60 km.

With salaries rising, battery life improv-ing, and better models on offer, far great-er numbers of Poles might well be willing to go electric in the near future.


It takes hours to see an electric vehicle charge up at this spot in Złote Tarasy shop-ping mall in Warsaw. Citroën 1 2

Fiat 2 -

Ford - 5

Mitsubishi 22 1

Peugeot 7 7

Renault - 12

Smart 2 -

TOTAL 36 27

Producer 2011 2012 (I-VII)

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� ThenumberofelectricvehiclesregisteredinPolandisfarfromimpres-sive,butmanufactu-tersandmarketanalystsremainconvincedthatthemarket’sinforarapidgrowth.Thismightcomewiththedevelopmentofchargingstations,stillararesightinPolishcities.

Luxury DEPArTMENT STOrE, rESTAurANT, DELicATESSEN AND WiNE BAr

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sTELLA MCCARTNEY, YVEs sAINT LAURENT

AND MANY MORE…

WARsAW, BRACKA 9, MON-sAT 11:00–21:00, sUN 11:00–18:00, WWW.VITKAC.COM

Cleantech_Vitkac_DRUK_210x297_.indd 1 2012-08-24 16:25:46


Warsaw is a city designed for cars: four wheeled

moving boxes are ubiqui-tous in the Polish capital, which makes congestion

and poor air quality a fact of daily life. Could things

get better?


forbiddenEntry

A I R P O L L U T I O NTHERE SEEMS TO BE a disdain for public transport in downtown War-saw. Drivers are pushing cars into

areas perfectly well covered by buses and trams, as well as Warsaw’s only metro line, causing the city’s central areas to congest and the air to deteriorate.

The Czech capital Prague tackled car congestion and ensuing problems by establishment of a low emissions zone (LEZ) in the city. “A LEZ is an area in the city that only cars of particular emissions standard can drive into,” Alicja Zajączkowska explained. Ms. Zajączkowska heads a program for the environmental NGO Zielone Mazowsze to make the Warsaw city hall establish a low emissions zone in the capital.

HOLD YOUR BREATHLEZs are popular in many European

countries, like Germany or France, but Warsaw has a long way to go before city officials warm up to the idea. Ms. Zajączkowska hopes it’s going to hap-pen sooner rather than later because the quality of air in the Polish capital is rather appalling.

According to data from the Warsaw stations measuring air quality, there were 145 days in 2011 during which air pollution with particulate matter ex-ceeded the norms. Cars are responsible

for two-thirds of this type of pollution, according to Zielone Mazowsze.

While pushing for the establishment of LEZs in cities is somehow linked with climate change mitigation, the primary reason for curbing air pollu-tion from cars relates to health.

“It’s also a better way of getting every-one to think about the problem. People are tired of the climate change talk but they will want to do something about their health,” Ms. Zajączkowska said.

Warsaw city hall told Cleantech that a LEZ was “in plans” as one of several measures to tackle pollution in the city, alongside prioritizing public transport or introducing a congestion charge like in London.

HOW DO OTHERS DO IT?In Berlin, the LEZ covers an area

of 88 square kilometers contained inside a ring created by the municipal

train system known as S-Bahn. From 2010, diesel vehicles with the emis-sion standard of EURO 4 or higher can enter the Berlin LEZ. The norm for petrol cars is EURO 1.

In Prague, there’s a ban affecting all vehicles over 3.5 tonnes, and a ban in a wider area over 6 tonnes. Entry permits can be granted if the lorry is at least EURO 2.

The Czechs are also going to create more LEZs in the country to tackle air pollution from transport, particu-larly in the industrial region of Mora-via. Prague is planning to give au-thorities power to allow drivers to bypass for free - rather than entering the city - on normally paid roads on days with high smog levels.

Ms. Zajączkowska acknowledges that getting a LEZ in Warsaw for cars meeting the EURO 4 norm is going to be difficult.

“The average car in Warsaw is 15 years old, largely not meeting even the EURO 2 standard. Of course, you can retrofit your car to meet higher stan-dards, but then again, not all European cities with LEZ allow that,” Ms. Zajączkowska said.

There were 145 days in 2011 in Warsaw during which car-induced air pollution with

particulate matter exceeded the norms

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POLAND IS THE EU’S sixth big-gest waste producer, but its waste management lags behind cur-

rent EU standards. Countrywide, 78 percent of municipal waste is land-filled, a mere 14 percent is recycled, and a measly one percent is subject to incineration to produce heat and power. For example, Poland’s second biggest city, Kraków, landfills 86 per-cent of its waste.

Once landfilled, the waste simply sits there, creating periodical problems of expanding the landfill site, which eats up large chunks of land. On top of that, many Polish landfills are not secure enough to prevent soil and groundwa-ter pollution. With EU funding at hand, muncipalities have started look-ing at incineration to reduce the prob-lem of waste.

The incineration projects, most of them in the tendering stage, are gov-erned by rules of public procurement. Each municipality owns a waste man-agement company. These public utilities typically own the land on which the incineration facilities will be built, but lack the financial resources to build them. Since waste management is one of the top environmental priorities in the EU, there’s funding available to sup-port the incineration developments.

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Catching up

EuropePrivate companies that are racing to land the incineration development con-tracts need to include the remainder of the cost in their offers, alongside fees, maintenance and service.

In Poland, tenders are most often awarded based on price, which, simply put, means that the cheapest offer has best chance to win. This has often led to problems with public tenders. A re-cent example involves a contract to build motorways to a company who was unable to carry out the work with the budget in their bid. Another problem plaguing public investment by tenders are court appeals waged by the losers, which lengthens the entire investment process. Appeals are first brought into the KIO, the appeals body of the Public Procurement Office. If unsuccessful, companies can still fight in the admin-istrative courts.

The incineration projects also suffer from the not-in-my-backyard attitude of local residents. A project of a super big incinerator in Ruda Śląska failed with lo-cals, even if it was supposed to process waste coming from 3.5 million people.

There are about 500 incineration fa-cilities operating in Europe today, only one in Poland. It’s located in Warsaw and processes about 65,000 tons of waste annually.

with

The push across Poland to develop a num-ber of waste incinerators

is expected to help tackle the problem of mu-

nicipal waste. Poland is one of the EU member

states lagging behind in waste management.



KONINA town of 80,000 people in the

Poznań province, Konin is developing a waste incinerator that will handle 94,000 tons of waste and convert it to 18 MWt (thermal) and 5 MWe (elec-tric) of power annually. The project’s estimated value is PLN 340 million project and it has secured EU financing of PLN 155 million. The incinerator will take 40 months to build and will service the town of Konin and 30 neighboring gmina areas (communes) with a population of 330,000 people.

MZGOK, Konin’s municipal waste authority, selected the PLN 364,08 mil-lion offer from a consortium of Integral Engineering und Umwelttechnik (Aus-tria), Erbud, Introl. The project, how-ever, has been plagued by most tender participants appealing against the deci-sion. The KIO is still to set the date to review the appeals.

Before the matter is settled by the KIO, one of these offers may stand:

l Mostostal Warszawa (PLN 456 million)l Rafako (PLN 404 million)l Warbud, Vinci Environnement (France) and VE Polska (PLN 403 million)l Italian consortium of Astaldi and Termomeccanica Ecologia (PLN 367 million)l H. Cegielski-Poznań, Gros-Pol Plus Poznań and Jacob Stiefel (PLN 356 million)

BYDGOSZCZ/TORUNBydgoszcz and Toruń are two neigh-

boring cities in northern Poland, their total population 560,000 people. The incineration facility will process 180,000 tons of waste annually and produce thermal and electric power. The project’s investor is Bydgoszcz municipal company ProNatura, which

set the deadline for the project to go online by end of 2015.

The tender for the incinerator was won by the consortium of Astaldi and Termomeccanica Ecologia, who offered to develop the facility for PLN 491.68 million. The Italians had only Mosto-stal Warszawa to compete with this time, but the Polish company’s offer exceeded PLN 600 million. Mostostal Warszawa appealed against the tender’s results on the ground that the Italian consortium’s offer was unrealistic in terms of price, but the appeal was over-turned by the KIO and the Polish com-pany decided not to pursue the matter in the courts.

KRAKÓWKraków is Poland’s second biggest

city, with a population of 757,000 peo-ple. The investor, the city-owned util-ity Krakowski Holding Komunalny, must make its incinerator, with an es-timated cost of about PLN 750 million, operational by 2015 or it will lose EU financing worth PLN 370 million. The facility will service Kraków by process-ing 220,000 tons of municipal waste that will also serve to produce electric and thermal power.

The road towards selecting the com-pany to build the facility has been very bumpy. In early July, the Kraków mu-nicipal waste company Krakowski Holding Komunalny (KHK) selected the consortium of Polish company Bu-dimex, Keppel Seghers (Belgium) and Cespa Compania Espanola de Servicios Publicos Auxiliares (Spain) to do the job for PLN 743 million, but the rival consortiums, one led by now-bankrupt PBG (PLN 700 million) and the other by Korean company Posco (PLN 796 million) appealed against the decision only to see their appeals rejected.

The Budimex-led consortium

emerged as the third winner of the ten-der, as earlier decisions from KHK had selected PBG and then Mostostal Warszawa, but were overturned by ap-peals of other participants.

PBG, however, is expected not to give up too easily and take the issue to court, as the now-bankrupt company is still look-ing to make a deal with its creditors. The court will also have to rule on another case, where an earlier participant in the tender, Mostostal Warszawa, is trying to get back in the game after it had been ex-cluded from the tender proceedings.

KATOWICE METROPOLITAN AREA

Katowice is the biggest city in a clus-ter of 15 or so cities and towns with a total population of about 3.5 million. The cities, grouped in a metropolitan association GZM, had an idea to de-velop one incineration facility with the capacity to handle up to 500,000 tons of municipal waste annually. The plan

There are about 500 incineration facilities operating in Europe today, only one

in Poland. It’s located in Warsaw and pro-cesses 65,000 tons of waste annually

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was to build the incinerator plant in the town of Ruda Śląska but it ended in a spectacular failure and losing PLN 600 million in EU financing for the project.

GZM got itself together and is com-ing up again with a plan to build the incinerator. Based on a new analysis on the amount of municipal waste in the agglomeration, the new project is planned to process only about 250,000-260,000 tons of waste, due to an ex-pected population decrease in the area.

In contrast to other towns and cities in Poland, GZM has an offer for the project from a private investor who wants to develop the facility in Chorzów. The incinerator will take at least four years to complete, and GZM member municipalities will have to handle their waste on their own in the meantime.

SZCZECINThe 400,000 person city of Szczecin

is about to see construction begin on an incineration plant that will produce

thermal and electric power from 150,000 tons of waste annually.

In mid-July, the Szczecin municipal waste authority contracted Mostostal Warszawa to build the incineration fa-cility, located on the Ostrów Grabows-ki, a river island in the Szczecin port. The company’s offer proved better than offers from Rafako, a consortium of Warbud and Vinci Environnement, as well as consortium of Erbud and Inte-gral Engineering und Umwelttechnik.

Mostostal Warszawa has until 2016 to deliver the PLN 666 million project that is financed in 90 percent by the EU and a preferential loan from the Na-tional Fund for Environment Protec-tion and Water Management. The city of Szczecin is only putting co-funding of PLN 60 million.

BIAŁYSTOKThe largest city in north eastern Po-

land, Białystok has a population of 295,000 people. The city’s municipal

waste authority is spearheading a proj-ect to build an incinerator with a capac-ity to process 120,000 tons of waste annually, producing electric and ther-mal power as well. The project will become operational in 2015 and will also serve nine neighboring communes.

The incineration plant was contract-ed to a Budimex-led consortium with Keppel Seghers from Belgium and Spain’s Cespa. The company will de-velop the facility for PLN 409 million, with EU financing secured at the level of PLN 210 million. Budimex beat two consortiums to the contract: Astaldi and Termomeccanica Ecologia; Poli-mex-Mostostal and Fisia Babcock En-vironment (Germany).

POZNANPoznań is Poland’s fifth biggest city

with a population of 555,000. The Poznań incineration project will go online in June 2015 and will cost PLN 1 billion with PLN 352 million coming from EU fund-ing. The facility will process 240,000 tons of waste from Poznań and nine neighbor-ing communes each year.

The city organized five rounds of a so-called competition dialog in which meetings were held with interested companies to discuss details of the in-cineration project. Only after the dialog meetings the companies were invited to table their offers.

The list of potential developers kept shrinking and, at the moment, interested companies include ITPOK Poznań (an E.ON company), Articulus (a Wheela-brator company), Sita-Zielona Energia (a GDF Suez company), Remondis Waste to Energy and a consortium of Dalkia Polska and PBG, competing under the name of “New Energy for Poznań.”

This report was compiled from municipal authority reports and the industry news portal wnp.pl. €1 = PLN 4.1.

Inspiring: Copenhagen’s

tallest building will be a waste

incinerator. And a ski hill.

Sustainability, Capacity, Experience, Sectoral Coverage


ENERGY CONSULTANTS RANKING

Rank

Company

Name

Cleantech

Quotie

nt1

Contact

info

O&G experience

in

PL2

RE experience

in PL3

Client li

st

1 83.8 yes yesMaciej Chyż[email protected]+48 502 184 611Al. Armii Ludowej 1400-638 Warsaw

AES, Aurelian, BNK Petroleum, BP, Bog-danka, Chevron, ConocoPhillips, Dalkia, Dong Energy, EDF, Enea, Energa, Eni, E.ON, EWE, ExxonMobil, Fortum, Gaz-System, Iberdrola, JSW, KGHM, KHW, Kompania Węglowa, Kulczyk Investments, Lotos

2 56.1 yes yesWitold [email protected]+48 22 551 93 00Stawki 40 01-040 Warsaw

Orlen Group, ArcelorMittal, Nordex, Green Bear, Fortum, PPL, Marathon, ConocoPhil-lips, Exxon Mobil, BNK, ENI, PGE

3 53.8 yes yesEwelina [email protected]+48 604 397 403 ul. Modzelewskiego 58A/5902-679 Warsaw

PGE, KGHM Polska Miedź , EDP Renewables, DONG Energy, MARTIFER Renewables, Global Wind Energy, Wind Prospect, VORTEX Energy, Geo Renewables, Infusion, Akuo Energy, Green Bear Corporation/CONERGA, DELITISSUE , KWB Konin, KWB ADAMÓW, EOLICA Wojciechowo, NFOŚiGW, Elek-trownia Wiatrowa KAMIEŃSK, Windprojekt

4

5

49.1

36.0

yes

no

yes

yes

David [email protected]+48 725 000 007ul. Hrubieszowska 201-209 Warsaw

Tomasz [email protected]+48 662 229 251Al. Jerozolimskie 8102-001 Warsaw

Lane Energy Poland, Lane Resources Poland, Jastrzębska Spółka Węglowa, Lennox Pol-ska, Sagittarius Solutions, Clariter Poland, Ezada, Green Lights, Farma Wiatrowa Słupca, Farma Wiatrowa Kluczbork, Energetyczna w Polsce, Mercuria Energy Trading

WND4

1. OUT OF 100. THE CLEANTECH QUOTIENT IS AN IN-HOUSE DEVELOPED ARITHMETIC TOOL, WHICH MEASURES THE COMPETENCIES OF RANKED COMPANIES 2. OIL & GAS EXPERIENCE IN POLAND 3. RENEWABLE ENERGY EXPERIENCE IN POLAND 4. WOULD NOT DISCLOSE

Comment: One of the reasons why PwC scored the highest is because they have a proven track record in promoting sustainable business.

Comment: CDM Smith’s environmental consultancy spans many sectors, including the nascent shale gas.

Comment: EKO-EFEKT is a mid-sized company, which ranked high because their experienced staff knows what to trash and what to recycle.

AN INDEPENDENT MEMBER FIRM OF BAKER TILLY INTERNATIONAL

Comment: BAKER TILLY has showers in their offices for employees who chose to run/bike/skate to work.

Comment: Bio Alians specialize in biogas and provide lawmakers with advice on what the sector needs .


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BA

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+48

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478

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- To

bias

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eant

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For this ranking’s question form and more details, please visit our webpage: www.cleantechpoland.com/ranking/

As a media and consultancy company for sustainable business, we aim to reward those who show environmental leadership in Poland.

Our ranking is not a simple ordered list, but a mathematical tool designed to award experienced companies with the best sustainability profile. The ranking considers qualifications based in four categories: sustainability, capacity, experience and sectoral coverage. The final score is a weighted average we call the Cleantech Quotient (CQ).

The HR firms (p. 82) and Consultants rankings published in this issue of Cleantech are a start. We will accept surveys throughout the year and aim to keep this list updated regularly on our website.

If you would like to see how your company ranks visit www.cleantechpoland.com/ranking and download a form. It takes just 5 minutes to complete. If you have any questions or comments, please contact me at [email protected].

Kind Regards,Tobiasz Adamczewski, Principal Analyst

Dear Reader,


The fixEU ETS:

E M I S S I O N S T R A D I N G

The EU’s current attempt to institute a working emissions cap and trade sys-tem is set to be a half-hearted affair. It’s unlikely to move the CO2 emissions trading to the level beyond which com-panies will start thinking to go cleaner.

B Y M A C I E J G O M Ó Ł K A *

THERE IS AN unfavorable vibe around the upcoming new rules of emissions trading in Europe. Insta-

bility on the carbon market and lack of agreement about increasing emission reduction goals are underpinned by the economic crisis just four months before the EU’s Emissions Trading System (EU ETS) enters into a more rigorous Phase 3. The system itself is not working properly, either, and begs an effort by the EU to reform it.

It’s not news that the European Com-misison is having trouble instituting an effective CO2 emissions cap and trade system. Phase 1, or the early iteration of the EU ETS, which lasted from 2005 to 2007, saw prices of emissions allow-ances reach bottom at €0.02 due to excessive oversupply.

It might seem that at today’s prices of about €7, the balance between supply and demand has been adjusted some-how. Still, the Commission, looking to more ambitious action to mitigate cli-mate change, is linking supply of Phase 2 (2008-2012) with that of Phase 3 (2013-2020) in a bid to solve the prob-lem of unneeded permits. Banking al-lowances to another trading period, however, will affect Phase 3, which will be flooded by a mass of allowances saved during the years of economic crisis.

BANKED OUT!According to the Commission, there

are 955 million EU emission allow-ances (EUAs) saved by companies in 2008-2011. By the end of 2012, it is es-

timated that the overall volume of units banked from Phase 2 into Phase 3 can reach 1.4 billion. Finally, distribution of free permits programmed for Phase 3 alone, starting from 2013, can enlarge oversupply up to 1.54 bln EUAs.

It’s not surprising at all, then, that the carbon market experiences long-lasting lows, affecting negatively the “green” investors who would otherwise invest in low-emission projects. The price of EUAs decreased by 60 percent to €6 during last 15 months. Also the Kyoto Protocol’s certified emission reduction units (CERs) recorded a historical low in July, trading below €2.60.

Such low prices can please compa-nies with shortage of permits but they paralyze market goals, first of all to lower the EU’s emissions and secondly,

Connie Hedegaard and Jos Delbeke of the European Commission invite leaders from the EU to discuss the transition to a low-car-bon economy, April 2010

* Country manager, Poland, at Pravda Capital Partners

LE

GA

L &

PO

LI

CY


Traders say that the price

rally can happen only in mid-term,

as back-loaded allowances

will flood the market again in

2018-2020

to make the companies switch to more environmentally friendly powering of their businesses. These goals are cur-rently far from being realized, as the price of carbon at which it makes eco-nomic sense to replace coal with natu-ral gas is at €24 euros.

SHORT-TERM CURETo address the problems plaguing

the EU ETS, the Commission in July published long-awaited proposals of amending the ETS Directive and the so-called Auctioning Regulation, or a document providing the rules for auc-tioning of permits as of 2013.

According to the proposals, the di-rective should give the Commission the power to adapt timetable of auc-tions to ensure “orderly functioning of the market”. There is a proposal for the Auctioning Regulation that allowances back-loaded (meaning temporarily withdrawn from the market) in 2013-

2015 will return to trading in 2018-2020. The changes, if approved, would result in the removal of 1.2 billion al-lowances from the market for five years on average. The Commission expects that its attempts at quick-fixing the EU ETS will triple the EUAs’ price, pump-ing it up to €20-28.

Traders say, however, that the price rally can happen only in mid-term, as back-loaded allowances will flood the market again in 2018-2020. Secondly, traders knowing that the market will become oversupplied in 2018-2020 will reflect it in futures contracts that can get extremely cheap dragging the spot price down when getting closer to these years. Finally, back-loaded volume may not be high enough to shrink the entire oversupply banked from Phase 2. If this happens it may occur that the Com-mission’s intervention will prove a fail-ure, best described as ‘too loud, too little, too late’.

Surplus to be banked 1,400

Free allocation 2,512 789 765 741 717 693 6,217

Auctioning 3,312 1,080 1,067 1,055 1,043 1,031 8,588

Linking directive (CER,ERU) 304.5 101.5 101.5 101.5 101.5 101.5 812

Demand (emissions) -6,430 -2,136 -2,129 -2,120 -2,109 -2,096 -17,020

Shortage -301.5 -165.5 -195.5 -222.5 -247.5 -270.5 -1,403

Accumulated surplus (noback-loading) 1,098.5 933 737.5 515 267.5 -3 -3

Large change back-load EC scenario -1,200 240 240 240 240 240 0

Accumulated surplus (withback-loading) -101.5 -27 17.5 35 27.5 -3 -3

2013-15 2016 2017 2018 2019 2020 TOTAL

� Approximately 1.4 billion surplusallowances(EUAs)willhaveaccruedduringthesecondphaseoftheEU-ETS(2008-2012).Whethermostofthissurplus(1.2billion)willbewithheldfromthemarketintheshorttermornot(2013-2015),itwillnotchangethetotalvolumeofallowancestoreachthemarketby2020.

T H E S E T - A S I D E M E C H A N I S M I N N U M B E R S ( M I L L I O N S O F E U A S )

PIC

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:EU

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doubtsofFull

Estimates vary, but Poland could receive up to PLN 60 bil-lion (€14.5 billion) from auction-

ing CO2 allowances by 2020. The ETS directive proposes spending at least half of these resources on goals such as climate change miti-gation and adaptation, but there’s no obligation to do so. Is there an agreement in the Polish govern-ment where this money will go?

We’re not able to predict what amounts the auctioning will yield. The PLN 60 billion figure is, I think, greatly exaggerated. It would mean that the price of allowances that it’s based upon is very radically higher than today. To-day’s market price is only about €7 per EUA [EU emission allowance]. Since the system isn’t up to speed yet and we don’t know what amounts of money it will generate, the government ought to discuss the issue of proceeds and how to manage them early in 2014, after the system has been up and running for some time.

With allowances trading at mere €7, what is the shape of the mar-ket? If the price goes up, is that

Poland has raised many ques-tions recently about the Euro-

pean Union’s low carbon policy endeavors. Cleantech

talks to Marcin Korolec, Poland’s environment minis-

ter and to many the face of Polish skepticism about the

EU’s current course in cli-mate change action.

B Y W O J C I E C H K O S C P H O T O G R A P H Y B Y

S Z Y M O N S Z C Z E S N I A K

going to be a good development?I can’t say if it’s going to be good or

bad for the market. It’s a simple function of the adopted legislation, the market nature of the ETS and the current eco-nomic situation. When in 2008/2009 Poland proposed a safety mechanism preventing the price of allowances from going below or above certain limits, the representatives of the Commisison and the then Presidency of the Council would tell us that we didn’t understand market mechanisms. So we went with the market approach and I don’t see a reason for which we would manipulate the price today. If the market puts the price where it is now, so be it.

What’s the ETS for? Emissions reduction as such or development of a low-emissions economy?

I think it’s enough to read the text of

E N V I R O N M E N T A L P O L I C Y

Mr. Korolec: waiting to overhaul the EU ETS

LE

GA

L &

PO

LI

CY


the ETS directive to find out what the ETS is for. The text is clear: reduction of CO2 emissions on an annual basis, based on a market mechanism which is applied uniformly to all member states. There’s nothing more about the directive. Is the directive offering the best possible solution? I have very serious doubts about it, but Poland was very isolated in expressing those doubts when the system was being worked out. Today, however, only a few months before the new phase of the ETS begins, I would be very much against any hurried and ner-vous moves about changing it because stable regulatory environment is so important to all parties involved. The ETS in its current shape hasn’t been like this for long. We need to gather experience before we use opportuni-ties to change it in a few years.

Did the Commission’s decision on derogation for the Polish power industry meet your expectations?

It was a good decision, overall, be-cause it allows some installations to benefit from free allocation of allow-ances in exchange for investments. But there are caveats that we need to address and Poland now needs to consider how to address them. Wherever doubts do exist, there will be discussions with the Commission and this is what could prove problematic in the future.

The European Commission is im-patient with Poland because the renewable energy directive should have been implemented in Decem-ber 2010. The renewable energy market is stalled, as lack of regula-tory framework poses investment risk for financial institutions. Has

the ministry done anything to speed up the process?

The ministry of economy is respon-sible for the implementation of this di-rective and we are doing all we can to help them from our position. Of course, it would be so much better if the law had been in effect from December 2010, but it’s not easy to draft such legislation. We would like to avoid mistakes that we see in some other member states where a generous support systems for solar en-ergy resulted in serious problems with the network and the cost of the whole scheme. It’s better to spend more time on this and come with a better regula-tion eventually.

“Is the [ETS] directive

offering the best possible

solution? I have very se-rious doubts

about it”

A safe betE N V I R O N M E N T A N D J O B S

POLAND HAS TYPICALLY been a rather poor job market. Only about half of the working age pop-

ulation is employed. Jobs on offer are often low paid positions, at a guaran-teed minimum wage of about €370. There’s nearly 27-percent unemploy-ment rate in the under-25 group. It’s a pretty dire challenge to land a good job in Poland these days, unless one’s sights are firmly set on going into the green sector, technical and managerial posi-tions in particular.

“Green jobs are now a sector of its own on the jobs market since the first push towards investing in infrastruc-ture to treat sewage, waste management and environmental engineering about a decade ago,” said Szymon Łajewski, consultant in oil, gas and energy at HAYS, a recruiting firm.

According to Mr. Łajewski, the avail-ability of jobs in the environmental sector is tightly linked to what the cur-rent regulatory emphasis is and the resources available.

KNOW WHAT’S COOKINGFor example, specialists in waste-to-

energy technology and related services are in for some good times, as several Polish cities are running tenders to build waste incinerators. According to Mr. Łajewski it’s waste management and particularly renewable energy where long term sustained growth of the sector will provide good ground for employment opportunities.

This issue of Cleantech refers many times to the upcoming new law on

energy from renewable sources. But to no one is it more important to take a look at the proposed regulation than to those looking for a job in the green sector at the moment. “It’s clear that the wind and photovoltaic sec-tors will be looking for people, espe-cially for project development man-agers,” said Mr. Łajewski.

According to HR companies, in the wind sector, which is currently the fastest-growing environmental busi-ness, a technician can make PLN 5,000-7,000 (about €1,200-1700; all salaries are monthly brutto figures). Manage-rial jobs are paid much better. Project development manager should make PLN 10,000-15,000 (€2,450-3680), while operation managers tend to be offered salaries north of PLN 20,000 (€4,900).

Not that each sector pays so well only because it’s environmental. Ac-

cording to Mr. Łajewski, where capi-tal expenditure is generally smaller, the market growing not so fast, and the outlook being less long term - like biogas for example - the salaries will be half of those in the wind sector.

OUR JOBS ARE BETTERSince jobs are an issue that’s sensitive

politically, it’s no wonder that the po-tential of green jobs is used a tool to prove the advantage of certain sectors over others. Poland is developing its nuclear power program, which is ex-pected to create thousand of jobs. One example is the recent agreement be-tween US engineering company Fluor and Polish electrical services firm Elek-trobudowa to work together for the development of the nuclear power plant in northern Poland.

According to Fluor, the cooperation with Elektrobudowa alone will create up to 3,000 jobs. A recent report by the Institute of Renewable Energy (IEO) and Greenpeace, however, said that greater social and economic benefits lie with the development of renewables. The jobs in the nuclear sector will be largely occupied by foreign specialists and facing questions like the nuclear sector’s overall future after Fukushima.

Green jobs, the report said, are more long-term and have a greater potential for creation of related jobs, as in the case of the development of onshore infra-structure in seaside areas in Bremer-haven in Germany or Great Yarmouth in the UK, both benefiting from the growth in the offshore wind sector.


“It’s clear that the wind and photo-

voltaic sectors will be looking for peo-ple, especially for project develop-ment managers”

Szymon Łajewski, HAYS

Unemployment may be a problem in some sectors of the Polish economy, but betting

one’s career on the environmental business appears to remain safe for years to come.


Sustainability, Capacity, Experience, Sectorial Coverage


TOP 10 HR FIRMS

2 75.6 yes [email protected]+48 22 376 09 00Al. Jana Pawła II 19 00-854 Warsaw

Enea, Energa, E.ON, EC Kraków, EDF Polska, RWE, EDP Renewables, Everen, Dong Energy, ENI Polska,Vattenfall, Von Roll

3 62.1 yes yesŁukasz [email protected]+48 604 397 403 Pl. Bankowy 200-095 Warsaw

WND4

4

5

53.2

44.9

yes

yes

yes

yes

Agnieszka [email protected]+48 508 000 779ul. Ruska 5150-079 Wrocław

Sylwia [email protected]+48 693 367 711Bagno 2/6 lok. 20500-112 Warsaw

Platinum Oil, RWE STOEN, Tau-ron, Global Geophysical Ser-vices, Silurian, Broen Oil&Gas, Boryszew, Huta Batory, Enea, Elektrownia Rybnik, LM Wind Power Services, PGE ENERGIA ODNAWIALNA.

WND4

Rank

Company

Name

Cleantech

Quotie

nt1

Contact

info

O&G experience

in

PL2

RE experience

in PL3

Client li

st

1 86.4 yes yesBartosz [email protected]+48 22 584 56 61ul. Złota 5900-120 Warsaw

WND4

Comment: Gender balance in management means a higher score in Cleantech’s ranking.

Comment: Adecco has bike racks, an incentive to use a form of clean transport and promote healthy living.

Comment: Although not many companies chose to calculate their GHG footprint, HRK believes it’s a small investment into sustainable business.

Comment: WS energy provides paid internships. Paying young people for their work assigns a value to their labor and helps to create a positve brand.

Comment: Target subsidizes their employees’ public transportation. They avoid traffic, emit less CO2, and get to work quicker.



7 41.9 yes yesPeter [email protected]+48 697 031 594Al. Jerozolimskie 6300-697 Warsaw

Shell, Honeywell, Ensto Build-ing Technologies, GE Water, and others

8 41.8 no yesJerzy [email protected]+48 22 438 88 20 Al. Jerozolimskie 123a02-017 Warsaw

WND4

9

10

37.8

37.5

yes

yes

yes

no

Agnieszka [email protected]+48 607 830 831Al. Jerozolimskie 123a02-017 Warsaw

[email protected]+48 22 401 80 30Al. Niepodległości 12402-585 Warsaw

WND4

WND4

Rank Company

Name

Cleantech

Quotie

nt1

Contact

info

O&G experience

in

PL2

RE experience

in PL3

Client li

st

6 42.7 yes yesOskar Kasiń[email protected]+48 22 488 65 00Al. Jerozolimskie 8102-001 Warsaw

WND4

Comment: At CPL Jobs paper is either used or recycled. It’s a habit we all should have acquired by now.

Comment: Spengler Fox’s involvement in charity is an example of business with a conscience.

Comment: AIMS is one of the few companies where biodegradable waste is thrown away separately from other recyclables.

Comment: REED’s scholarship program shows that they aren’t afraid of making long-term investments in the future.

Comment: Stanton Chase’s employees carpool. Splitting the gas bill and GHG footprint saves money and helps the environment.

SOU

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ON

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012


For this ranking’s question form and more details, please visit our webpage: www.cleantechpoland.com/ranking/

CalendarKey events Sept 2012 - Feb 2013

W W W.CLE ANTECHPOL AND.COM | 85 W W W.CLE ANTECHPOL AND.COM | 85

Wind energy workshops (PSEW)September 25, 2012, Warsaw, PolandThe fundamental purpose of the second edition of the Wind Energy Workshops will be to present European experience in the area of wind farm integration with the National Power System, energy storage, grid balancing

and smart grid technology. Basing on experience gained in other countries we would like to demonstrate that using appro-priate technology one may reinforce and improve the power grid, allowing operators to respond to the increased share of renewable energy sources.

Green Building Symposium Expo Gala (PLGBC)October 9-10, 2012, Warsaw, PolandThe 4th edition of PLGBC Green Building Symposium is the only official conference dedicated to green building, organized by the Polish Green Building Council - a

member of the World Green Building Council.International speakers have confirmed their participation in the symposium: Alfonso Ponce, deputy director of the Deloitte Real Estate Advisory (France) and a member of the LEED Steering Commit-tee, Darcy Nicolle, and many others.

Offshore Wind (PSEW)October 10-11, Sopot, PolandThe PSEW Offshore 2012 Conference, organized in cooperation with the Polish Offshore Wind Energy Society, is the first large event in Poland fully dedicated to offshore wind power. The Conference is a great oppor-

tunity to meet key persons related to the offshore wind power sector from all over Europe. This is also a unique opportunity to meet represen-tatives of state administration responsible for the regulation and development of principles applicable to the offshore wind power market in Poland.

Unconventional Gas & the Environment (informa)September 25, 2012, London, UKThis shale gas event is about communication miscon-ceptions and opportunities: gaining project approval by engaging stakeholders on the environmental impact of

unconventional gas. Hear real-life perspectives from companies looking for govern-ment, scientific, local & public acceptance. Find out how they are mitigating environmental concerns by untangling fact from fiction and anecdotal evidence from scientific investi-gations.

RENEXPO (Reeco)October 17-18, 2012, Warsaw, PolandSince 2011 RENEXPO Poland creates in Warsaw the meeting point for key persons and experts for knowl-edge transfer in the energy sector. The event focuses on some of the main renewable energy sources of the

country: photovoltaic, biogas, hydropower, heat pumps and biomass. It is not only a meeting place for decision makers presenting the current energy issues, but much more it addresses to the topics, prob-lems and developments of the energy of tomorrow.

Expo Real (Messe Munchen)October 8-10, Munich, GermanyThe International Trade Fair for Commercial Property and Investment, has been held every October since 1998 in Munich, Germany. The largest B2B trade fair for commercial real estate in Europe focuses on networking,

market orientation and valuable business contacts. Across the 64,000 square metre site, 1,610 exhibitors present their portfo-lios. EXPO REAL participants cover the entire spectrum of the real estate industry. The event’s accompanied by an extensive conference program.

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07 08 09 10 11 1213

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CalendarKey events Sept 2012-Feb 2013

Cleantech logo denotes that we are a media partner, sponsor, or participant.

Biomass Technology Forum (SC Consulting)October 25-26, 2012, Belchatów, PolandThe Biomass Technology Forum is a two day industry event, including a workshop, which gathers the best specialists in the biomass sector. During the forum, you

can engage with industry experts on the subjects of how they plan to source forest and agricultural biomass for heat and power plants. You will also meet specialists, academics, employees and consultants, and be treated during the best industry event this year.

Pollutec (Reed Expositions)November 27-30, 2012, Lyon, FranceAs the world’s leading show for the environment sector, Pollutec brings together over 4 days in Lyon the full range of equipments, technologies and services for the prevention and treatment of pollution of all kinds, and

more generally for the preserva-tion of the environment and the implementation of sustainable development. The Sustainable City, Argentina (country of the year) and Sustainable Industry special events will generate interesting dialogue among all the stakeholders in the environ-mental business.

Ethical Fashion Show Paris (Messe Frankfurt)January 19-21, 2013, Paris, FranceOne of the major goals of the Ethical Fashion Show is to demonstrate that ethical fashion can be trendy, creative and deliver social and environmental benefits. It focuses

on protecting people and their working conditions, preserva-tion of the environment as well protecting crafts and skills that reflect the differences of individ-uals and cultures. Check out the design showrooms, catwalks and be a part of the roundtable discussions.

POLEKO (Poznan International Fair)November 20-23, 2012, Poznan, PolandDue to its broad coverage, POLEKO International Trade Fair of Environmental Protection is the most important branch meeting in Poland. Poleko 2012 includes the following sectors: water and sewage, waste and recy-

cling, energy, renewable energy, air, noise and vibrations, land recultivation and revitalization, municipal and power building industry, control and measure-ment equipment, risk detection and environmental protection systems, flood protection, environmental organizations and consultancies, education.

EWEA Annual Event (EWEA)February 4-7, 2013, Vienna, AustriaThe EWEA Annual event is a unique combination of comprehensive, wide-ranging conference program, international exhibition and incomparable networking opportunities. It’s unmissable for any business serious

about its future in the wind sector. The 2013 edition will take place in Vienna, close to Europe’s emerging wind energy markets. The EWEA annual conference programme features hundreds of high-quality presentations covering the length and breadth of the wind energy sector.

Shale Gas World Europe (Terrapinn)November 27-29, 2012, Warsaw, PolandThe Terrapinn event is arguably the best in the entire market of shale gas conferences. In its 3rd edition, the event attracts nearly all of the service companies on the Polish market as sponsors: Halliburton, Schlumberger,

Baker, United Oilfield Services, Viking – making it a must attend for everyone who wants to get into the Polish shale. Usually at this type of events, oilfield operators shy from attending, but this one has landed top executives from PGNiG, Silurian-Hallwood, San LeonEnergy and 3Legs Resources.

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ClimbingIn 2009 after many years of being an active tourist, I was looking for a new challenge. So I took up climbing. It appeared that I had to reduce my weight for about 10 kg but it brought great results as I’m definitely faster and lighter

now. Just this year I had an opportunity to climb in Argentine Andes and in Pakistani Karakorum.

B Y H U N T E R D I A M O N D P H O T O G R A P H Y : M R . N O W A K ’ S F I L EPORTRAIT

Bartłomiej Nowak, executive director of the Center for Inter-

national Relations (CSM), feels at home in the Karakorum.

Bartłomiej Nowak

CSMAs executive director, I’m responsible for day-to-day overall management of the organization. This type of leadership particularly needs refreshment from time to time, so I can get some distance and then come back to work with a fresh perspective. Mountaineer-ing makes me a better man and a better manager.

Cool projectsThe CSM had the opportunity to direct the project “Wrocław – Profile of a Sustainable City,” which finished with very valuable outputs. Currently the CSM is starting a project called Energiewiende aimed at a comparison of Polish and German attitudes concerning change in energy and climate policies.

Thoughts at the foot of the mountainBe patient and never lose nerves. Rome was not built in a day. You should always know where your summit is. Efforts and courage are not enough without purpose and direction. The “impossible” gets done. It’s only a matter of time. It just takes a little longer, and this time will pass anyway. Hope for the best, prepare for the worst. The weather can rapidly change. Find your own way. Where there is a will, there’s a way.

HeroFormer UN Secretary General, Dag Hammarskjold. Some would call his job “the most impossible job in the world.” Hammarskjold had a rare combination of outstanding leadership and managerial skills and a great sense of morality which he brought to international politics. He was extremely good in enlarging his room for maneuver and challenging the interests of the great powers in a way that they could absorb. Finally, in 1961 he paid the highest price for his service and devotion to the world community when he died in a plane crash on his way to mediate an international conflict.

cleantech fall 2012

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