Ladies and Gentelman!
ATTENTION! BECAUSE OF GREAT INTEREST IN DEBATE THE PLACE OF THE DEBATE HAS BEEN CHANGED - Debate will take place in the Press Center Foksal - HOUSE Journalists, Foksal 3 / 5, Warsaw.
Other details remain unchanged.
Dear Sirs,
On behalf of the organisers - Procesy Inwestycyjnych sp. z o.o., the ETA Association for Efficiency, and the E. Kwiatkowski Institute, we would like to invite you to attend and present your viewpoint at a debate of key importance for the Polish economy:
Financing of Energy Investments
31 March 2010, 11 a.m., Journalists House, ul. Foksal 3/5, Warsaw
The need for huge investments in the electricity sector in Poland has been under discussion for many years. It goes without saying that without modern infrastructure there is no chance that development will take place. For several years, we have been scratching our heads over the solution to the issue of financing, whilst in the meantime power generation units are geting old, demand for power is increasing and the EU is bringing in more and more environmental regulations. The absolute necessity for increasing capacity is more and more tangible. Over 60% of generation resources in the energy sector will need to be replacved by 2030. Our investment needs are approx. €100 billion for the electricity sector, €100 billion for the heating sector and thermomodernisation, €20 billion for the gas sector (including a gas port), €100 billion for modernisation of rail and road transport (excluding motorways). The investment plans of Polish energy concerns indicate that the level of possible investments in the near future is only in the region of 1800 MW. This is clearly not enough. Add to this expenditures connected with extension of transmission networks, RES, construction of a nuclear power plant, CCS, cogeneration and coal gasification.
The value of declared investments connected with the energy sector is five times higher than the value of 4 energy groups. Experts from the finance and consulting sectors estimate that such a broad scope of investments cannot be financed by debt. It is said that banks do not have sufficient resources, so a natural solution would be to dramatically increase prices for end users. An additional drawback is the fact that the costs of financing encompass repayment of a loan, as well as connected interest and equity costs. Subsidisation from the EU will also not prove a satisfactory solution, as the maximum input from this source will be €5 billion p.a. (in general, i.e. not only for energy projects). A breath of fresh air for the sector is however the derogation that was negotiated in December 2008, which will allow energy companies to save means for purchase of CO2 emissions rights and allocate them to execution of investments; however, we must bear in mind that this is a mandatory option.
Selection of either governmental or market mechanisms supporting investments is becoming vital. The long-term contracts mechanism in its current state will not be applicable in the future as a result of its non-market nature and the characteristics of forbidden public aid. The problem will also not be solved by the imprecise provisions of the Energy Law Act, which gives the President of the Energy Regulatory Authority the right to announcew a tender for new generation capacities even in situations where the energy security of the country is under threat. This tender does not have any „reward.”
The importance of these issues lead to the necessity of seeking new solutions combining the elements of purchase obligations with market elements that could be accepted by financial institutions interested in investing in Poland. It seems that an interesting direction could be support systems assuming use of „tradable certificates.”
During the debate, which will gather together representatives of the government, energy and finance sectors and independent experts, we will try to show where, how and when we should invest so as to ensure efficiency. How can we stimulate development of investments and where can we get the money for them? How can we encourage potential investors?
We have also invited the following individuals to participate in the discussion:
- Marcin Zieliński, Department of Corporate Governance and Privatization III, Ministry of the State Treasury;
- dr Henryk Majchrzak, Director of the Energy Department, Ministry of the Economy
- prof. Alfred Janc, Advisor of President of the National Bank of Poland;
- Krzysztof Pietraszkiewicz, President of the Management Board, Polish Bank Association;
- dr Dariusz Ledworowski, Chairman of the Working Group for Economy, Public Consultancy Board of the National Programme for Reduction of Emissions;
- prof. Krzysztof Żmijewski, Secretary General of the Consultancy Board of the National Programme for Reduction of Emissions;
- prof. Janusz Lewandowski, Chairman of the Working Group for Science and Education, Consultancy Board of the National Programme for Reduction of Emissions
- prof. Zygmunt Maciejewski, Chairman of the Working Group for Grid, Public Consultancy Board of the National Programme for Reduction of Emissions;
- representatives of the sectors: energy, gas, industrial, financial, advisory.
The discussion was attended by:
Leaders of the debate:
- dr Dariusz Ledworowski, Chairman of the Working Group for Economy, Public Consultancy Board of the National Programme for Reduction of Emissions;
- Prof. Marek Wierzbowski, Chairman of the Working Group for Law, Public Consultancy Board of the National Programme for Reduction of Emissions
11.00 - INTRODUCTION:
- dr Dariusz Ledworowski, Chairman of the Working Group for Economy, Public Consultancy Board of the National Programme for Reduction of Emissions
- Prof. Marek Wierzbowski, Chairman of the Working Group for Law, Public Consultancy Board of the National Programme for Reduction of Emissions;
PART I. PRESENTATIONS:
11.10 - NEEDS:
Leader of the session:
- Prof. Marek Wierzbowski, Chairman of the Working Group for Law, Public Consultancy Board of the National Programme for Reduction of Emissions
Speakers:
- Investment needs of Polish power: nuclear energy, conventional energy, renewable energy sources, networks and energy efficiency:
- prof. Janusz Lewandowski, Chairman of the Working Group for Science and Education, Consultancy Board of the National Programme for Reduction of Emissions
- prof. Zygmunt Maciejewski, Chairman of the Working Group for Grid, Consultancy Board of the National Programme for Reduction of Emissions
- dr Sławomir Pasierb, Chairman of the Working Group for Energy Efficiency, Consultancy Board of the National Programme for Reduction of Emissions
- Grzegorz Wiśniewski, President of the Management Board, Institute for Renewable Energy
11.50 - POSSIBILITIES:
Leader of the session:
- Prof. Marek Wierzbowski, Chairman of the Working Group for Law, Public Consultancy Board of the National Programme for Reduction of Emissions
Speaker:
- Ocena potencjału inwestycyjnego spółek energetycznych Skarbu Państwa
- Marcin Zieliński, Director, Department of Ownership Supervision and Privatisation III, Ministry of the Treasury
12.15 - CONDITIONS:
Leader of the session:
- dr Dariusz Ledworowski, Chairman of the Working Group for Economy, Public Consultancy Board of the National Programme for Reduction of Emissions
Speakers:
- Investment and economic growth and financial stability
- prof. Alfred Janc, Adviser to the President of the Polish National Bank;
- Investment potential of the Polish financial sector
- Krzysztof Pietraszkiewicz, President of the Polish Banks Association;
- Financing of the investments with debt capital markets
- Mirosław Urbański, Member of the Management Board, Deutsche Bank Polska S.A.;
- Eurobonds as a way of obtaining financing for energy investments
- Tomasz Matulka, Director, Department of Corporate and Investment Banking, HSBC Bank Polska SA;
- Financing of investment bonds
- Jacek Zwierzchowski, Deputy Director, Department of Structured Finance and Mezzanine, BRE Bank SA;
- Impact on financial markets in the energy sector funding opportunities
- Tadeusz Kuczborski, Member of the Management Board, WestLB Bank Polska SA;
- Financing of investment in the electricity sector: new challenges, old problems? Do everything possible to finance?
- Wojciech Hann, Partner, Deloitte, Financial Advisory, Central European Energy and Resources Group;
- Bank financing of energy investments
- Michał Surowski, Director of Structured Finance Department, Rabobank Polska SA;
13.40 - IS THERE A SOLUTION:
Leader of the session:
- dr Dariusz Ledworowski, Chairman of the Working Group for Economy, Public Consultancy Board of the National Programme for Reduction of Emissions
Speakers:
- Blue Certificates - the chance of success of the Polish power?
- prof. Krzysztof Żmijewski, Secretary General of the Consultancy Board of the National Programme for Reduction of Emissions
13.50 - PART II. DISCUSSION
Leader of the discussion:
- dr Dariusz Ledworowski, Chairman of the Working Group for Economy, Public Consultancy Board of the National Programme for Reduction of Emissions
Their participations in discussion have announced:
- Piotr Kwiatkowski, General Director, Crédit Agricole Corporate & Investment Bank S.A. Branch in Poland
- Mirosław Dudziński, Director, Fitch Polska
MERIT MATERIALS:
PRESENTATIONS:
Below you can find presentations, which were shown during the debate "Financing energy investment" (in order by program):
- prof. Janusz Lewandowski, Chairman of the Working Group for Science and Education, Consultancy Board of the National Programme for Reduction of Emissions: >>>
- prof. Zygmunt Maciejewski, Chairman of the Working Group for Grid, Consultancy Board of the National Programme for Reduction of Emissions: >>>
- dr Sławomir Pasierb, Chairman of the Working Group for Energy Efficiency, Consultancy Board of the National Programme for Reduction of Emissions: >>>
- Grzegorz Wiśniewski, President of the Management Board, Institute for Renewable Energy: >>>
- prof. Alfred Janc, Adviser to the President of the Polish National Bank: >>>
- Krzysztof Pietraszkiewicz, President of the Polish Banks Association: >>>
- Mirosław Urbański, Member of the Management Board, Deutsche Bank Polska S.A.: >>>
- Tomasz Matulka, Director, Department of Corporate and Investment Banking, HSBC Bank Polska SA: >>>
- Jacek Zwierzchowski, Deputy Director, Department of Structured Finance and Mezzanine, BRE Bank SA: >>>
- Tadeusz Kuczborski, Member of the Management Board, WestLB Bank Polska SA: >>>
- Wojciech Hann, Partner, Deloitte, Financial Advisory, Central European Energy and Resources Group: >>>
- Piotr Piela, Partner, Director of Energy Group, Ernst&Young: >>>
- Michał Surowski, Director of Structured Finance Department, Rabobank Polska SA: >>>
- prof. Krzysztof Żmijewski, Secretary General of the Consultancy Board of the National Programme for Reduction of Emissions: >>>