Tag:
energy security

President Donald Trump has announced the retreat of the Paris Agreement and a wish to renegotiate the global agreement. Trump's decision has a political dimension and will not have an impact on Europe's energy strategy.

A stable and reliable supply of energy is the foundation of national energy security, yet it should not burden end users with excessive costs. On the one hand, it is important to keep electricity prices low, as they are the driving force behind economic development and provide opportunities for industrial development. On the other hand, wholesale energy prices should be sufficient to maintain the generating fleet. Since wholesale electricity prices fell to the lowest level in years, concerns have arisen over ensuring an adequate level of capacity and securing stable power system operations in Poland.

In 2014, the UK government introduced legal provisions for a capacity market in Great Britain. Many countries – including Poland – have since then followed the developments on the island. FAE describes the power market in Great Britain as well as measures to raise its security of supply. It also compares the volume of Great Britain’s capacity reserve with that of Poland. The goal of the project was to analyse the results of the capacity auction in Great Britain in December 2014 and to draw possible lessons for Poland in view of the special situation of the Polish power sector. 

To what extent electricity shortages can be expected in the years 2016/2017? How will the reserves in the power system develop? The reserves in Poland are still relatively high, they were in 2013 at about 13 percent of the annual peak load. In 2018, the reserves will decline to about 8 percent. Assuming the so-called cold reserve, which was introduced in 2014, the reserve capacity, however, is at 11 percent in 2017. According to the provision of new generation capacity in the years 2019/2020 the reserve will increase to approximately 18 percent.