Property Rights in Poland

Share of property rights in my energy price

Distribution price (Capacity fix price, Long term contract

cancellation fee, Distribution fee, Quality fee, Monthly fee )

Wholesale price

Excise tax

Property rights

Profile, balancing, all risks, margin, other

- Green certificate: certificate of origin for electricity generated with renewable energy sources. Regarding

electricity coming from the RES, Poland had to adjust its relevant regulations to the regulations stipulated in

Directive No 77/2001/EC. The directive determines the share of electricity coming from RES in total electricity

consumption in the member countries as well as it imposes the obligation to implement the system of so-called

“certificates of origin” that is aimed at supporting the development of the renewable energy sector.

- Red certificate: similar to the green certificate, used in the so-called “cogeneration” directive” as of 2004

(Directive No 2004/8/EC) that promotes poroducion of electricity in cogeneration with thermal energy.

- Yellow certificate: certificate or origin for electricity generated from high-efficient CHP (combined heat and

power) units fired with gaseous fuels or when the total installed power is lower than 1 MW.

- Violet certificate: certificates of origin for electricity generated from high-efficient CHP units fired with methane

or with gas obtained during processing of biomass.

- White certificate: introduced to stimulate companies to achieve a certain target of energy efficiency.

- Blue certificate: new certificate implemented in 01/07/2016; support for biogas power generation

The system of Property Rights supports electricity produced from other sources than coal

and lignite (renewable energy sources) and also supports cogeneration with gas, heat and

methane from mines. It’s based on the Act on Renewable Energy Resources (RES).

Different certificates

How to calculate the price of each color?

The calculation is based on the following formula: share (%) x certificate price (PLN/MWh)

1) Share(%) – set by the goverment:

Min. share of the property

rights2015 2016 2017 2018 2019

PMOZE_A or green certificate

(renewables)14,00%

15,00%/1

4,35%15,40% 19,35% 19,35%

PMGM or yellow certificate

(cogen+gas)4,90% 6% 7% 8% -

Red certificate (cogen+heat) 23,20% 23,20% 23,20% 23,20% -

PMMET or violet certificate

(methane)1,30% 1,50% 1,80% 2,30% -

PMWhite or white certificate

(efficiency)1,50% 1,50% - - -

Blue certificate (biogas) - 0,65%** 0,60% 0,65% 0,65%

EXAMPLE: impact of green certificate on your electricity price based on TGE price quoted on June 2016:

20% x 70 PLN/MWh = 14 PLN/MWh

2) Certificate price (PLN/MWh):

There are several possibilities on how the supplier establishes the price per color for you:

a) Own generation – suppliers price

b) Indexed to power exchange – PMOZE price on TGE (POLPX)

c) Replacement Fee – set every year by the regulator. The consumer pays the replacement fee

if the given color is not liquid enough to be bought on the TGE or in case suppliers do not

have it

How to calculate the price of each color?

Replacement fee (PLN/MWh) 2015 2016 2017 2018 2019

PMOZE_A (green certificate) 300,03 300,03 300,03 300,03 300,03

PMGM (yellow certificate) 121,63 125 120 - -

PMEC (red certificate) 11 11 10 - -

PMMET (violet certificate) 63,26 63 56 - -

PMWhite (white certificate) - 1,29* 1,94 2,04 2,142

Blue certificate - 300,03 300,03 300,03 300,03

Orange Certificate (planned)

25

75

125

175

225

275

01

/01/1

1

01

/04/1

1

01

/07/1

1

01

/10/1

1

01

/01/1

2

01

/04/1

2

01

/07/1

2

01

/10/1

2

01

/01/1

3

01

/04/1

3

01

/07/1

3

01

/10/1

3

01

/01/1

4

01

/04/1

4

01

/07/1

4

01

/10/1

4

01

/01/1

5

01

/04/1

5

01

/07/1

5

01

/10/1

5

01

/01/1

6

01

/04/1

6

01

/07/1

6

01

/10/1

6

PLN

/M

Wh

Percentile on Green certificate (Property Right)

Perc10 Perc25 Perc50 Perc75 Perc90 PMOZE_A (green)

Poland | Percentiles on Green certificate

Evolution of obligation for buying „colors” since 2010

Property Right („color”) 2010 2011 2012 2013 2014 2015 2016 2017

PMOZE_A or green

certificate (renewables) YES YES YES YES YES YES YES YES

PMGM or yellow certificate

(cogen+gas)YES YES YES NO

YES

since 29.

April YES YES YES

PMEC or red certificate

(cogen+heat)YES YES YES NO

YES

since 29.

April YES YES YES

PMMET or violet certificate

(methane) YES YES YES YES YES YES YES YES

PMWhite or white certificate

(efficiency) NO NO NO YES YES YES YES YES

Blue certificate (biogas)

NO NO NO NO NO NO

YES

since 1.

July YES

Options available on the market

• Fix the price for the next year(s)

• Formula based on POLPX – Futures (buy now

for delivery in the future)

• Formula based on POLPX – Spot (buy now for

immediate delivery)

• Formula based on the replacement fee (e.g. %

of replacement fee)

• Cap price

• Mix of all of the above

Green certificates or fixed price

• As of January 2016 a new auction scheme for green energy was implemented next to the green certificates. This price is guaranteed for 15 years. Renewable energy sources installations installed after this date will no longer follow the green certificate system but will be replaced by a new auction scheme. The old system for installations before the 1st of January 2016 will be valid until 2035.

• This RES fee was set at 2,51 PLN/MWh as of the 1st of January 2016 and is part of the electricity distributions tariffs.

More information?

Bartosz Palusiński

Operations Director Central Europe

m: +48 509 82 00 25