This month’s newsletter is reaching you from our solitary sofas to yours, during a time when reliable information and ongoing communication channels are absolutely vital. Our thoughts are with the ones most aggresively affected by COVID-19 and our resources are at your disposal in whichever manner we can assist you with.
The global pandemic has made the world even more aware of the importance of energy in our lives, of how dependent we all are on a reliable electricity infrastructure to still be able to work and sustain ourselves.
In Poland electricy demand dropped by 7,5% so far, and in Italy by 18% as a result of COVID-19 outbreak.
While we are all standing on shaky ground, it is clear that electricity, fuel and CO2 prices will keep going down as the world is prioritizing battling the pandemic. The Green New Deal will also be likely shelved for a brief while, but reprioritized as countries, Poland included, will need the help more than ever. Some local voices are arguing the EU should put a stop to Emissions Trading Scheme (ETS) or exempt Poland from it as of January 2021, arguing that this is a time to help, not tax.
The Polish government will pump over PLN 200 billion (EUR 43 billion) as a first aid to the economy, some of which will likely go towards the mondernization of energy infrastructure.
Wind energy is also experiencing disruptions because of delays in the supply chain and installation works. Projects that won the auctions in 2018 and 2019 may therefore not be able to meet the timelines they are bound to. PWEA (Polish Wind Energy Association) has advanced a proposal to amend the present legislation, namely to extend the delivery time by up to 12 months.
Short term the sector will no doubt be affected, but on the long term goals and challenges are likely to remain the same. Below, you can find interviews from two central figures of the Polish Government discussing the way forward - these insights were collected prior to COVID-19 outbreak.
Ministry of Environment
Undersecretary of State
Ministry of State Assets
Please note that our report on Poland’s energy industry will still be launched digitally in May, as scheduled, and include updated perspectives on how businesses expect to be impacted by the virus.