„Prospects for energy markets vs. the energy union”
20 May 2015, 11:00-14:00 hrs
Polityka weekly magazine’s head office, ul. Słupecka 6, Warsaw
A careful observer may notice a dichotomy that has recently occurred in the energy market. One of the market’s branches is developing in the direction of the European integration, and even towards the global dimension. At the same time, however, there is an extensive development of the other branch which covers local energy generation by municipalities, citizens and prosumers. The national-level sector can no longer be perceived as an isolated and hierarchical system, as its such picture is already outdated.
The events taking place behind the eastern border have become a driver for creating an energy community of the European Union. For many countries, including Poland, the priority is to become independent of energy resources’ supplies from Russia. One of the activities that illustrate this situation is the reverse flow link along the Yamal pipeline through a pumping station in the German town of Mallnow, which increases the capacity, and thus lowers the prices and the sensitivity to supply disruptions.
On the other hand, individual end-users attach much less importance to the country's energy security than to their energy comfort which they try to achieve also by themselves. That is why the prospects for investments in the prosumer energy are growing.
It's fascinating to observe the new, emerging trends. On 19 March 2015 the European Council summit meeting was held, which established a framework structure of the energy union. The structure is to be based on five pillars: solidarity and trust; a fully integrated European energy market; energy efficiency, energy security and, decarbonisation of the economy; research and innovation; and competitiveness. The main emphasis is placed on the intensification of works on the infrastructure for electricity and gas (including inter-system connectors ), the implementation of energy-related legislation, the increase in the use of local energy sources and low-carbon technologies, and the signature of sales contracts with suppliers for the purchase of gas in accordance with the EU regulations.
These activities are focused on the regional dimension, but also assume an exchange with neighbouring Member States, taking into account the autonomous management of the energy basket, which in turn requires the development of transboundary connections.
Those activities aim at getting independent of energy supplies from Russia and the achievement of the climate policy targets by 2030.
Many of the conclusions of the summit generate strong emotions. In Poland, the examples include the protests of the Trade Union of Miners and of the Association of Power Industry Trade Unions. The German government, in turn, has problems with accepting the joint purchases of gas in the free market conditions. There is also the question of the LNG terminal in Świnoujście. There are also prospects of buying cheaper gas from the US. All this creates a new and challenging situation that needs to be analysed and discussed.
The above mentioned activities, if implemented and equipped with proper tools (e.g. using the power market concept) can thoroughly reconstruct the sector on the European scale. On the other hand, distributed generation may exert strong competitive pressure on the national professional power system. In near future, the latter will have to cope with the European offer on the one hand, and with the prosumer offer on the other hand.
It is very unlikely that in order to deal with these challenges, further consolidation will be sufficient, if it is going to held at all.
The purpose of the debate is to explain these issues and discuss possible solutions.
The following persons have been invited to take part in the debate:
- Edward Słoma – Deputy Director, Energy Department, Ministry of Economy;
- Artur Bramora – Member of the Polish Parliament;
- Marek Woszczyk – President of the Board, PGE;
- Henryk Majchrzak – President of the Board, PSE;
- Ireneusz Łazor - President of the Board, TGE;
- Piotr Kołodziej - President of the Board, TAURON Dystrybucja;
- Krzysztof Żmijewski - Secretary General of the Public Board for Sustainable Development of the Energy Sector
Further information on the debate is available from Ms Barbara Gacia, e-mail: pr@proinwestycje.pl,
tel. 609 250 800.