Economic Conditions for the Development of Energy Cooperatives in Poland

Abstract

One of the important areas of the energy transformation is the citizens involvement in the energy production process. This is a prerequisite for maintaining the security of supply and price stabilization. In order for all citizens to have equal opportunities to use green energy, regardless of financial and housing opportunities, energy cooperatives are established in many countries. In Poland, the first renewable energy cooperatives emerged in 2021 but, unfortunately, their role in the energy transformation process will be rather limited in the near future. This is mainly due to the numerous legal, economic and social barriers that hinder their creation. This article adopts the hypothesis that there are too many barriers in Poland that discourage the creation of energy cooperatives or other forms of collective prosumption. The main obstacle is the limitations of installed power, coerced by the poor condition of the network infrastructure. The aim of the article is to answer the question of whether, given the current legal and economic conditions, a large-scale development of energy cooperatives is possible in Poland, or will the existing barriers make this development limited and not contribute to the country’s energy transformation? To answer this question, primary and secondary sources were used. Primary research relied on interviews in all cooperatives operating in Poland. Based on the literature on the subject, reference was made to the experiences of other EU countries. The research shows that there are strong economic, legal and mental barriers to the development of cooperatives in Poland. Overcoming them requires changes in the law, in the energy policy including decentralization of the energy market and increased public confidence in collective forms of prosumption.

The Role of Local Government in the Bottom-Up Energy Transformation of Poland on the Example of the Lower Silesian Voivodeship

“…In Poland, municipalities can also influence the development of RES through proper spatial planning and providing land for the location of wind farms, photovoltaic farms or biogas plants. Earlier research conducted by Kostecka-Jurczyk, Marak and Struś shows that the current provisions of local spatial development plans often limit the development of RES, and, thus, do not favor the creation and functioning of energy cooperatives [28]. However, studies conducted in the communes themselves do not confirm the earlier findings.…”

“…The problem raised by the communes related to the unsatisfactory functioning of the Distribution System Operators was also identified in the research carried out by Kostecka-Juryczyk, Marak and Struś at Spółdzielnia Energetyczna-Nasza Energia and Spółdzielnia Energetyczna EISALL [28]. These studies show that DSOs are not prepared to cooperate with energy cooperatives [28]. DSOs are not able to accept additional RES capacity, especially when weather conditions are conducive to higher production.…”

“…It is also puzzling that representatives of local authorities did not pay attention to the problems related to the non-adjustment of the provisions of the Public Procurement Act with regard to the functioning of communes in energy cooperatives (the need to announce a tender for the purchase of energy produced by a cooperative of which the commune is a member). This problem was raised by representatives of energy cooperatives in an earlier study [28].…”

“…On the other hand, the cluster is generally worse in terms of available financial preferences. It does not benefit from the same preferences as cooperatives in terms of distribution fees [28].…”

Determinants of Return-on-Equity (ROE) of Biogas Plants Operating in Poland

“…In the countries with relatively low electricity prices, biogas production for fuel for vehicles is the main option considered [31]. The profitability of the biogas plant increases when there is a possibility of selling the heat generated in the electric energy production process, or when it is possible to participate in the energy community where higher prices can be obtained or own energy replaces energy purchased from the grid [32][33][34]. Higher revenue can be obtained by enabling control of energy production within the grid in such a way as to sell the energy in the periods when other RES (PV, wind) do not produce it [35], and in some countries, even by planning flexible seasonal energy production [36].…”