Energies

Research

19 pages, 3748 KiB

Open AccessArticle

Assessing the Effects of Uncertain Energy and Carbon Prices on the Operational Patterns and Economic Results of CHP Systems

by Pablo Benalcazar, Przemysław Kaszyński and Jacek Kamiński

Energies 2021, 14(24), 8216; https://doi.org/10.3390/en14248216 - 7 Dec 2021

Cited by 4 | Viewed by 2420

Abstract

In the power and heat sectors, the uncertainty of energy and carbon prices plays a decisive role in the rationale for decommissioning/repurposing coal-fired CHP (combined heat and power) systems and on investment decisions of energy storage units. Therefore, there is a growing need [...] Read more.

In the power and heat sectors, the uncertainty of energy and carbon prices plays a decisive role in the rationale for decommissioning/repurposing coal-fired CHP (combined heat and power) systems and on investment decisions of energy storage units. Therefore, there is a growing need for advanced methods that incorporate the stochastic disturbances of energy and carbon emission prices into the optimization process of an energy system. In this context, this paper proposes an integrated method for investigating the effects of uncertain energy and carbon prices on the operational patterns and financial results of CHP systems with thermal energy storage units. The approach combines mathematical programming and Monte Carlo simulation. The computational process generates feasible solutions for profit maximization considering the technical constraints of the CHP system and the variation of energy and carbon emission prices. Four scenarios are established to compare the operational patterns and economic performance of a CHP system in 2020 and 2030. Results show that in 2020, there is an 80% probability that the system’s annual profit will be less than or equal to €30.98 M. However, at the same probability level, the annual profit in 2030 could fall below €11.88 M. Furthermore, the scenarios indicate that the incorporation of a thermal energy storage unit leads to higher expected profits (€0.74 M in 2020 and €0.71 M in 2030). This research shows that coal-fired CHP plant operators will face costly risks and potentially greater challenges in the upcoming years with the increasing regulatory and financial pressure on CO₂ emissions and the EU’s plan of phasing out fossil fuels from electricity and heat generation. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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17 pages, 12654 KiB

Open AccessArticle

Capacity Market and (the Lack of) New Investments: Evidence from Poland

by Przemysław Kaszyński, Aleksandra Komorowska, Krzysztof Zamasz, Grzegorz Kinelski and Jacek Kamiński

Energies 2021, 14(23), 7843; https://doi.org/10.3390/en14237843 - 23 Nov 2021

Cited by 27 | Viewed by 3192

Abstract

Capacity remuneration mechanisms operate in many European countries. In 2018, Poland implemented a centralized capacity market to ensure appropriate funding for the existing and new power generation units to improve long-term energy security. One of the declarations made while the mechanism was deployed [...] Read more.

Capacity remuneration mechanisms operate in many European countries. In 2018, Poland implemented a centralized capacity market to ensure appropriate funding for the existing and new power generation units to improve long-term energy security. One of the declarations made while the mechanism was deployed was its beneficial influence on incentives for investments in new units. In this context, this paper aims to analyze the effects of the capacity mechanism adopted for investments in new power generation units that may be financed under the capacity market mechanism in Poland. The analysis is conducted for four types of capacity market units, the existing, refurbishing, planned, and demand-side response types, and includes the final results of capacity auctions. The results prove that the primary beneficiaries of the capacity market in Poland have been the existing units (including the refurbishing ones) responsible for more than 80% of capacity obligation volumes contracted for 2021–2025. Moreover, during the implementation of the capacity market in Poland, the planned units that signed long-term capacity contracts with a total share of 12% of the whole market were already at the advanced phases of construction, and the investment decisions were made long before the implementation of the capacity market mechanism. Therefore, they were not associated with the financial support from the capacity market. The study indicates that the capacity market did not bring incentives for investments in new power generation units in the investigated period. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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11 pages, 1337 KiB

Open AccessArticle

Application of Smart Technologies in Metropolis GZM to Reduce Harmful Emissions in District Heating Systems

by Grzegorz Kinelski, Jakub Stęchły, Adrian Sienicki, Kai Czornik and Piotr Borkowski

Energies 2021, 14(22), 7665; https://doi.org/10.3390/en14227665 - 16 Nov 2021

Cited by 12 | Viewed by 2086

Abstract

Harmful emissions from heating installations have recently received public attention in Poland. Polish municipalities mainly take their heat from local district heating networks with large-scale coal-fired heat sources. Today, transition to nonemissive sources on this scale would be impractical. The easiest way to [...] Read more.

Harmful emissions from heating installations have recently received public attention in Poland. Polish municipalities mainly take their heat from local district heating networks with large-scale coal-fired heat sources. Today, transition to nonemissive sources on this scale would be impractical. The easiest way to reduce carbon emissions is to limit heat consumption, but at the same time, to preserve thermal comfort, the application of smart technologies is necessary. Veolia operates on 71 district heating systems in Poland, including Warsaw, Lodz, and Poznan. Since heat consumption in Warsaw and Metropolis GZM is at a similar level, this is a case study of Hubgrade automation system application within the Warsaw district heating network. This paper also presents results of simulation of harmful emission reduction potential in Metropolis GZM. Simulation results show that there is a potential for saving approximately 275 kt of CO₂ for the whole Metropolis GZM. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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12 pages, 1596 KiB

Open AccessArticle

Risk-Adjusted Discount Rate and Its Components for Onshore Wind Farms at the Feasibility Stage

by Piotr W. Saługa, Krzysztof Zamasz, Zdzisława Dacko-Pikiewicz, Katarzyna Szczepańska-Woszczyna and Marcin Malec

Energies 2021, 14(20), 6840; https://doi.org/10.3390/en14206840 - 19 Oct 2021

Cited by 68 | Viewed by 4165

Abstract

The concept of risk is well known in the energy sector. It is normally recognized when it comes to price and cost forecasting, annual production calculation, or evaluating project lifetime. Nevertheless, it should be pointed out that the quantitative evaluation of risk is [...] Read more.

The concept of risk is well known in the energy sector. It is normally recognized when it comes to price and cost forecasting, annual production calculation, or evaluating project lifetime. Nevertheless, it should be pointed out that the quantitative evaluation of risk is usually difficult. The discount rate is the only parameter reflecting risk in the discounted cash flow analysis. Therefore, knowledge of the discount rate along with the major components affecting its level is of fundamental significance for making investment decisions, capital budgeting, and project management. By referring to the standard coal-fired power generation projects the authors of the paper tackle the analysis of the composition of discount rate for onshore wind farm technologies in the Polish conditions. The study was carried out on the basis of a typical (hypothetical) onshore wind farm project assessed at the feasibility stage. To enable comparisons and discussions, it was assumed that the best reference point for such purposes is the real risk-adjusted discount rate, RADR, after-tax, in all equity evaluations (the ‘bare bones’ assumption); that is because such a rate reflects the inherent characteristics of the project risk. The study methodology involves the a priori application of the discount rate level and subsequently—in an analytical way—calculation of its individual components. The starting point for the analysis of the RADR’s composition was the definition of risk, understood as the product of uncertainty and consequences. Then, the risk factors were adopted and level of uncertainty assessed. Subsequently, using the classical sensitivity analysis of IRR, the consequences (as slopes of sensitivity lines) were calculated. Consequently, risk portions in percentage forms were received. Eventually, relative risks and risk components within cost of equity were assessed. Apart from the characteristics of the discount rate at the feasibility stage, in the discussion section the study was supplemented with an analogous analysis of the project’s cost of equity at the operating stage. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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17 pages, 2525 KiB

Open AccessArticle

The Impact of Fleet Electrification on Carbon Emissions: A Case Study from Poland

by Krzysztof Zamasz, Jakub Stęchły, Aleksandra Komorowska and Przemysław Kaszyński

Energies 2021, 14(20), 6595; https://doi.org/10.3390/en14206595 - 13 Oct 2021

Cited by 13 | Viewed by 3519

Abstract

Fleet electrification is one of the measures proposed for achieving climate neutrality in the coming years. The replacement of internal combustion engine vehicles with electric vehicles has a positive impact on carbon emission reduction in some countries. However, in countries highly dependent on [...] Read more.

Fleet electrification is one of the measures proposed for achieving climate neutrality in the coming years. The replacement of internal combustion engine vehicles with electric vehicles has a positive impact on carbon emission reduction in some countries. However, in countries highly dependent on fossil fuels, such a possibility requires examination with respect to the means of electricity generation and fuel mix used in their power systems. One such country is Poland, selected as an example of an economy strongly dependent on fossil fuels. The main objective of this paper is to investigate the impact of fleet electrification of an individual company located in Poland on the reduction of carbon emissions. The concept and calculations are based on historical data on the single-year mileage and fuel consumption of 619 cars used by this company. Even though the Polish power system is based on fossil fuels, fleet electrification could contribute to a reduction in carbon emissions of 24%. The decrease in operational costs by EUR 370 thousand/year is also significant. Apart from environmental and economic impacts, this paper provides valuable findings on the difference between catalogue and real-driving data application in the various analyses. With respect to Polish fuel mix in 2019, the application of data published by car producers shows that fleet electrification would increase carbon emissions by 14% in this company. This means that depending on the initial assumptions, different conclusions can be drawn by policymakers, regulatory bodies, academics, or other groups of interest. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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23 pages, 11637 KiB

Open AccessArticle

The Future of the Polish Energy Mix in the Context of Social Expectations

by Wojciech Drożdż, Oliwia Mróz-Malik and Marcin Kopiczko

Energies 2021, 14(17), 5341; https://doi.org/10.3390/en14175341 - 27 Aug 2021

Cited by 19 | Viewed by 2327

Abstract

Currently, Poland has been facing a process of intensive changes in the energy sector, motivated by the strengthening of the goals of the climate and energy policy at the European level. A key challenge for energy transition in Poland is to build an [...] Read more.

Currently, Poland has been facing a process of intensive changes in the energy sector, motivated by the strengthening of the goals of the climate and energy policy at the European level. A key challenge for energy transition in Poland is to build an energy system that corresponds with social needs not only in terms of energy demand, but also environmental protection, with a strong role of local initiatives. The aim of this study is to present the expectations of the Poles regarding the optimal energy mix, especially representatives of local governments, and their awareness of the needs and expectations of their local communities. According to the authors, local governments are extremely important links, responsible for the development of the energy economy and energy security at the local level. The authors set themselves the task of verifying whether local authorities are prepared to create a substantive energy policy at the local level in accordance with the directions of the Polish energy policy and on the basis of local conditions, including the opinions of the inhabitants of a given region. The objective of this work was achieved by reviewing the available sources and the adopted survey method. A review of the literature, in particular in terms of the conducted research on the social acceptance in terms of energy policy, showed that there are no comprehensive surveys of the opinions of local government representatives. The results of study conducted by the authors showed that although the vast majority of respondents know the assumptions of the Polish energy policy until 2030, almost a quarter did not realize that the energy policy will be changed in the near future. At the same time, the vast majority of respondents believe that the Polish government should prepare a social campaign related to the energy policy. According to the authors, this proves the need to improve the awareness of this research group, which may bring benefits in the process of shaping the energy economy of the regions. The survey also showed preferences of the representatives of local governments for the optimal energy mix in Poland and their subjective assessment of the knowledge of public opinion in the region on the expected shape of the energy policy. From the findings, it can be concluded that more in-depth research is needed on the preparation of local governments to shape energy policy at the local level, including more detailed research on how opinions of the inhabitants of a given region and the specificity of a given region are taken into account while shaping local energy policy. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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17 pages, 5417 KiB

Open AccessArticle

The Impact of COVID-19 on Electricity Demand Profiles: A Case Study of Selected Business Clients in Poland

by Marcin Malec, Grzegorz Kinelski and Marzena Czarnecka

Energies 2021, 14(17), 5332; https://doi.org/10.3390/en14175332 - 27 Aug 2021

Cited by 34 | Viewed by 3531

Abstract

The COVID-19 pandemic has caused changes in electricity demand and, consequently, electricity consumption profiles. Given the rapid changes in energy prices, it is significant from the perspective of energy companies, and forecasting consumed energy volume. A necessity for accurate energy volume planning forces [...] Read more.

The COVID-19 pandemic has caused changes in electricity demand and, consequently, electricity consumption profiles. Given the rapid changes in energy prices, it is significant from the perspective of energy companies, and forecasting consumed energy volume. A necessity for accurate energy volume planning forces the need for analyzing consumers’ behaviors during the pandemic, especially under lockdowns, to prepare for the possibility of another pandemic wave. Many business clients analyzed in the paper are economic entities functioning in sectors under restrictions. That is why analyzing the pandemic’s impact on the change in energy consumption profiles and volume of these entities is particularly meaningful. The article analyzes the pandemic and restrictions’ impact on the total change of energy consumption volume and demand profiles. The analysis was conducted basing on data collected from a Polish energy trading and sales company. It focused on the energy consumption of its corporate clients. Analyzed data included aggregated energy consumption volumes for all company’s customers and key groups of economic entities under restrictions. The analysis demonstrates the influence of pandemic restrictions on energy consumption in the group of business clients. Significant differences are observable among various sectors of the economy. The research proves that the largest drops in energy consumption are related to shopping centers and offices. Altogether, the restrictions have caused a 15–23% energy consumption drop during the first lockdown and a maximum 11% during the second against expected values. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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35 pages, 4665 KiB

Open AccessArticle

Can Decarbonisation and Capacity Market Go Together? The Case Study of Poland

by Aleksandra Komorowska

Energies 2021, 14(16), 5151; https://doi.org/10.3390/en14165151 - 20 Aug 2021

Cited by 12 | Viewed by 2531

Abstract

In recent years, numerous countries have introduced or considered capacity markets as remuneration mechanisms for long-term capacity adequacy. Since adequacy is frequently linked with thermal power generation, there is an ongoing debate as to whether this instrument could impact decarbonisation. In this context, [...] Read more.

In recent years, numerous countries have introduced or considered capacity markets as remuneration mechanisms for long-term capacity adequacy. Since adequacy is frequently linked with thermal power generation, there is an ongoing debate as to whether this instrument could impact decarbonisation. In this context, the paper presents a quantitative assessment of the consequences of introducing a capacity market on decarbonisation pathways. The Polish power system is taken as an example due to its heavy dependence on fossil fuels. To this end, a computable model of the Polish power system is developed and applied to the study of two research scenarios. The first scenario presents the power system without introducing a capacity market, while the latter considers the system with a capacity market in place. The analysis shows that the introduction of a capacity market delays the decarbonisation of the power system and has a negative impact on carbon neutrality. Even though coal-fired units are phased out, they are mainly replaced by natural gas. The method and model developed within this study can be applied to countries where a capacity market is being discussed, and fossil fuels continue to play a dominant role. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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16 pages, 741 KiB

Open AccessArticle

Limestone Sorbents Market for Flue Gas Desulphurisation in Coal-Fired Power Plants in the Context of the Transformation of the Power Industry—A Case of Poland

by Jarosław Szlugaj and Krzysztof Galos

Energies 2021, 14(14), 4275; https://doi.org/10.3390/en14144275 - 15 Jul 2021

Cited by 5 | Viewed by 2319

Abstract

Since the beginning of the 1990s, due to international regulations on air quality, a large number of flue gas desulphurisation (FGD) installations have been constructed in the Polish coal-fired power industry. Thanks to that, SO₂ capture in this industry increased to ca. [...] Read more.

Since the beginning of the 1990s, due to international regulations on air quality, a large number of flue gas desulphurisation (FGD) installations have been constructed in the Polish coal-fired power industry. Thanks to that, SO₂ capture in this industry increased to ca. 90%. Since wet lime or fluidized bed boilers were mostly used for FGD purposes, a significant increase in the domestic demand for lime sorbents has been reported. Between 1994 and 2019, it has increased from virtually zero before 1994 to about 3.3–3.4 million tpy (tonnes per year) today. On the basis of official governmental data and completed surveys of the Polish power companies, the paper analyses the process of the implementation of FGD in Poland along with limestone sorbents consumption and FGD gypsum production in the Polish coal-fired power plants. It also presents the current and potential limestone resource base for production of limestone sorbents applied in FGD. Electric energy mix in Poland is expected to be changed radically in the coming 30 years. Share of coal-based electricity is still very high—ca. 80%—and it will remain dominant for at least next decade. With the next coming FGD installations, further moderate increase of limestone sorbents consumption is expected, up to 3.7 million tpy in 2030. After 2030, a significant, quick decrease of share of coal-fired electricity is expected in Poland, down to max. 30% just before 2050. This will result in a gradual decrease in limestone sorbent demand, to max. 1.3 million tpy before 2050 and virtually zero after 2050, which will be followed by collapse of FGD gypsum production. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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17 pages, 3107 KiB

Open AccessArticle

The Economic Aspect of Using Different Plug-In Hybrid Driving Techniques in Urban Conditions

by Piotr Wróblewski, Jerzy Kupiec, Wojciech Drożdż, Wojciech Lewicki and Jarosław Jaworski

Energies 2021, 14(12), 3543; https://doi.org/10.3390/en14123543 - 14 Jun 2021

Cited by 38 | Viewed by 2816

Abstract

Plug-in hybrids (PHEV) have become popular due to zero-emission driving, e.g., in urban areas, and using an internal combustion engine on longer distances. Energy consumption by the PHEV depends on many factors which can be either dependent or independent of the driver. The [...] Read more.

Plug-in hybrids (PHEV) have become popular due to zero-emission driving, e.g., in urban areas, and using an internal combustion engine on longer distances. Energy consumption by the PHEV depends on many factors which can be either dependent or independent of the driver. The article examines how the driver can use the vehicle’s capabilities to influence its wear. Determining the optimal driving technique, due to the adopted nature of the timetable, is the basic variable that determines the profitability of using a given drive system. Four driving techniques have been selected to determine which one can offer the largest advantages. A vehicle-dedicated application has recorded the drivetrain performance on a predetermined route through an urban area. The analysis of results has demonstrated which of the driving techniques provides measurable effects in terms of reduced energy consumption and the shortest travelling time. The study shows longitudinal acceleration and torque generated by the electric drive. The information included in the study can help any PHEV user reduce the operating cost by applying an appropriate driving technique. The proposed research introduces the possibilities of assessing the influence of the driving style on energy consumption. The innovative side of this research is the observation of stochastic phenomena that are difficult to detect when using approximation modelling. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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26 pages, 3715 KiB

Open AccessArticle

Hydrogen Technology on the Polish Electromobility Market. Legal, Economic, and Social Aspects

by Wojciech Drożdż, Filip Elżanowski, Jakub Dowejko and Bartosz Brożyński

Energies 2021, 14(9), 2357; https://doi.org/10.3390/en14092357 - 21 Apr 2021

Cited by 18 | Viewed by 2385

Abstract

The aim of this study was to evaluate the motorization market of electric vehicles powered by hydrogen cells in Poland. European conditions of such technology were indicated, as well as original proposals on amendments to the law to increase the development pace of [...] Read more.

The aim of this study was to evaluate the motorization market of electric vehicles powered by hydrogen cells in Poland. European conditions of such technology were indicated, as well as original proposals on amendments to the law to increase the development pace of electromobility based on hydrogen cells. There were also presented economic aspects of this economic phenomenon. Moreover, survey research was conducted to examine the preferences of hydrogen and electric vehicle users in 5 primary Polish cities. In this way, the level of social acceptance for the technological revolution based on hydrogen cells and taking place in the motorization sector was determined. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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24 pages, 3981 KiB

Open AccessFeature PaperArticle

Methodology for Assessing the Impact of Aperiodic Phenomena on the Energy Balance of Propulsion Engines in Vehicle Electromobility Systems for Given Areas

by Piotr Wróblewski, Wojciech Drożdż, Wojciech Lewicki and Paweł Miązek

Energies 2021, 14(8), 2314; https://doi.org/10.3390/en14082314 - 20 Apr 2021

Cited by 34 | Viewed by 2771

Abstract

The article presents the methodology of isolating aperiodic phenomena constituting the basis of the energy balance of vehicles for the analysis of electromobility system indicators. The symptom observation matrix (SOM) and experimental input data are used to analyze periodic phenomena symptoms. The multidimensional [...] Read more.

The article presents the methodology of isolating aperiodic phenomena constituting the basis of the energy balance of vehicles for the analysis of electromobility system indicators. The symptom observation matrix (SOM) and experimental input data are used to analyze periodic phenomena symptoms. The multidimensional nature of the engine efficiency shortage has been well defined and analyzed in terms of errors in the general model using neural networks, singular value decomposition, and principal component analysis. A more difficult task is the analysis of a multidimensional decision-making process. The research used a data fusion method and the concept of symptom reliability, which is applied to the generalized failure symptom obtained by applying the singular value decomposition (SVD). The model research has been based on the gray system theory (GST) and GM forecasting models (1,1). Input data were obtained from the assessment of driving cycles and analysis of the failure frequency for 1200 vehicles and mileage of 150,000 km. Based on this analysis, it can be concluded that with the current infrastructure and operating costs and the frequency of failure of PHEV and BEV drives, ICEV vehicles are unrivaled in terms of their operating costs. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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19 pages, 4093 KiB

Open AccessArticle

Varying the Energy Mix in the EU-28 and in Poland as a Step towards Sustainable Development

by Wiktoria Sobczyk and Eugeniusz Jacek Sobczyk

Energies 2021, 14(5), 1502; https://doi.org/10.3390/en14051502 - 9 Mar 2021

Cited by 23 | Viewed by 3217

Abstract

The demand for clean energy is a key global issue requiring global ideas to be implemented through local action. This is particularly important in Poland’s energy transition, since the country produces energy mainly from conventional sources, i.e., coal, gas, and crude oil. Adverse [...] Read more.

The demand for clean energy is a key global issue requiring global ideas to be implemented through local action. This is particularly important in Poland’s energy transition, since the country produces energy mainly from conventional sources, i.e., coal, gas, and crude oil. Adverse climate change caused by high emissions of the economy based on the combustion of hydrocarbons as well as the growing public awareness have made it necessary to look for new environmentally friendly energy sources. The aim of the paper is to demonstrate that the use of alternative energy sources, biomass in particular, is compatible with sustainable development policy. Eight indicators for the EU-28 and for Poland were analysed in order to verify the progress in modifying the energy mix between 2010 and 2018 in the context of implementing Sustainable Development Goals (SDGs). The analysis showed that both in the EU-28 and in Poland, the aggregated indicator taking into account the positive and negative change in the values of individual indicators improved between 2010 and 2018. In the EU-28, this indicator is higher (180.1) than in Poland (152.3). The lower value for Poland is mainly due to the fact that the main source of energy in Poland remains hard coal and lignite. However, the noticeable increase in recent years in the share of energy from renewable sources, biomass included, allows us to look with hope to a rapidly growing indicator measuring progress towards a sustainable development goal, and to improving environmental standards. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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22 pages, 7092 KiB

Open AccessArticle

Determinants of Decarbonisation in the Transformation of the Energy Sector: The Case of Poland

by Magdalena Wójcik-Jurkiewicz, Marzena Czarnecka, Grzegorz Kinelski, Beata Sadowska and Katarzyna Bilińska-Reformat

Energies 2021, 14(5), 1217; https://doi.org/10.3390/en14051217 - 24 Feb 2021

Cited by 53 | Viewed by 5011

Abstract

This paper aims to identify the determinants of the decarbonisation processes in Poland within the scope of energy transformation. The purpose of the study is to identify how the public perceives decarbonisation determinants in order to develop a sustainable energy strategy for Poland. [...] Read more.

This paper aims to identify the determinants of the decarbonisation processes in Poland within the scope of energy transformation. The purpose of the study is to identify how the public perceives decarbonisation determinants in order to develop a sustainable energy strategy for Poland. The transition of the energy market to low-carbon technology is a policy challenge. Governments must implement policies that are environmentally friendly, cost-effective, but, most of all, socially acceptable. Social acceptance risk plays a significant role in Poland, influencing the decarbonisation process. In Poland’s case, the coal share is decreasing, but it is still the most important fuel for electricity production. This process of decarbonisation is a fundamental influence on the transformation of the energy sector in Poland. The social perception of solutions that can be applied was examined. The Polish natural environment is poisoned. Poles suffer from diseases related to the burning of coal for energy production. Societal awareness, how people perceive the government’s actions, and what they expect in this regard is crucial. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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14 pages, 2251 KiB

Open AccessArticle

Central and Eastern European CO₂ Market—Challenges of Emissions Trading for Energy Companies

by Dorota Ciesielska-Maciągowska, Dawid Klimczak and Małgorzata Skrzek-Lubasińska

Energies 2021, 14(4), 1051; https://doi.org/10.3390/en14041051 - 17 Feb 2021

Cited by 17 | Viewed by 3596

Abstract

The aim of this article was to identify challenges of emissions trading that the Polish and CEE Central and Eastern Europe energy industry will face, as well as to indicate key implications for the competitiveness of the companies from the energy sector resulting [...] Read more.

The aim of this article was to identify challenges of emissions trading that the Polish and CEE Central and Eastern Europe energy industry will face, as well as to indicate key implications for the competitiveness of the companies from the energy sector resulting from that trading. The EU Emissions Trading Scheme (ETS) is the emissions trading system, which results from the EU policy concerning climate change. It is a tool for reducing greenhouse gas emissions (GHG). The system regulates an annual allocation of the allowances. The price of CO₂ emission allowances is subject to constant fluctuations because it depends on various macroeconomic factors as well as is an effect of proprietary trading by global investment banks. Polish energy companies have an increasing share in the emission of CO₂ in the European market. This is due to the fact that other European countries are rapidly moving away from fossil fuel-fired sources. The cost per MWh related to CO₂ price has been growing in the last 10 years from ca. 5 up to 30 EUR/MWh at the beginning of 2021. From an electric power utilities perspective, the ability to set up a proper strategy in trading CO₂ will be crucial to be competitive in the wholesale power market. The higher price of CO₂ (and electric power) at the domestic market in relation to more green (more renewable energy sources RES in energy mix) surrounding countries translates into a worse competitive position. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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22 pages, 1403 KiB

Open AccessArticle

Energy Consumption in Central and Eastern Europe (CEE) Households in the Platform Economics

by Małgorzata Poniatowska-Jaksch

Energies 2021, 14(4), 1002; https://doi.org/10.3390/en14041002 - 14 Feb 2021

Cited by 3 | Viewed by 2570

Abstract

The ongoing digitization of the economy has led to the creation and functioning of platform model socio-economic systems. It is also reflected in the changes in patterns of energy consumption in households. In the first cross-section, it is an industrial revolution, with environmental [...] Read more.

The ongoing digitization of the economy has led to the creation and functioning of platform model socio-economic systems. It is also reflected in the changes in patterns of energy consumption in households. In the first cross-section, it is an industrial revolution, with environmental benefits. However, platforms are primarily a revolution in the consumption sphere, and here, the effects of digitization are not fully recognized. Our social needs are increasingly met “through accessibility” without us leaving our home. Due to the home’s multifunctionality, based on the availability of platform services, household energy consumption should be viewed differently today than before. The article aims to show the changes in Central and Eastern Europe (CEE) household energy consumption between 2008–2018 and their assessment through the prism of the economy’s platformization methods. The study presents the changes in energy consumption in households and determines the correlations between platformization (the author’s index) and changes in energy consumption in households with the use of taxonomic methods. The platformization leaders—Estonia and Lithuania—were subjected to a more detailed analysis. The presented method(s) may be useful in predicting the changes in households’ energy consumption caused by the digitization of other countries in the region (countries under transformation and outsiders-Bulgaria, Romania), in implementing household energy management systems, and in a better adjustment of regulations directed at these consumers. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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13 pages, 280 KiB

Open AccessEditor’s ChoiceArticle

Coopetitive Nature of Energy Communities—The Energy Transition Context

by Karolina Mucha-Kuś, Maciej Sołtysik, Krzysztof Zamasz and Katarzyna Szczepańska-Woszczyna

Energies 2021, 14(4), 931; https://doi.org/10.3390/en14040931 - 10 Feb 2021

Cited by 44 | Viewed by 4258

Abstract

The decentralization of the large-scale energy sector, its replacement with pro-ecological, dispersed production sources and building a citizen dimension of the energy sector are the directional objectives of the energy transformation in the European Union. Building energy self-sufficiency at a local level is [...] Read more.

The decentralization of the large-scale energy sector, its replacement with pro-ecological, dispersed production sources and building a citizen dimension of the energy sector are the directional objectives of the energy transformation in the European Union. Building energy self-sufficiency at a local level is possible, based on the so-called Energy Communities, which include energy clusters and energy cooperatives. Several dozen pilot projects for energy clusters have been implemented in Poland, while energy cooperatives, despite being legally sanctioned and potentially a simpler formula of operation, have not functioned in practice. This article presents the coopetitive nature of Energy Communities. The authors analysed the principles and benefits of creating Energy Communities from a regulatory and practical side. An important element of the analysis is to indicate the managerial, coopetitive nature of the strategies implemented within the Energy Communities. Their members, while operating in a competitive environment, simultaneously cooperate to achieve common benefits. On the basis of the actual data of recipients and producers, the results of simulations of benefits in the economic dimension will be presented, proving the thesis of the legitimacy of creating coopetitive structures of Energy Communities. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

19 pages, 1953 KiB

Open AccessArticle

Green Energy in Central and Eastern European (CEE) Countries: New Challenges on the Path to Sustainable Development

by Teresa Pakulska

Energies 2021, 14(4), 884; https://doi.org/10.3390/en14040884 - 8 Feb 2021

Cited by 36 | Viewed by 3956

Abstract

In the conditions of climate change and the scarcity of natural resources, the future of energy is increasingly associated with the development of the so-called green energy. Its development is reflected in the European Commission strategic vision to transition to a climate-neutral economy. [...] Read more.

In the conditions of climate change and the scarcity of natural resources, the future of energy is increasingly associated with the development of the so-called green energy. Its development is reflected in the European Commission strategic vision to transition to a climate-neutral economy. This is a challenge that the Central and Eastern European (CEE) countries, members of the EU, are also trying to meet. In recent years, these countries have seen an increase in the share of renewable energy and a reduction in greenhouse gas emissions (GGE). On the other hand, basing the energy sector on unstable energy sources (photovoltaics and wind technologies) may imply new challenges on the way to sustainable development. These are old problems in a new version (ecology, diversification of supplies) and new ones related to the features of renewable energy sources (RES; instability, dispersion). The aim of the article was to classify, on the basis of taxonomic methods, the CEE countries from the point of view of green energy transformation (original indicator) and to predict new threats to Romania, Poland, and Bulgaria, the countries representing different groups according to the applied classification. The issues presented are part of a holistic view of RES and can be useful in energy policy. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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21 pages, 2175 KiB

Open AccessArticle

Discounting for Energy Transition Policies—Estimation of the Social Discount Rate for Poland

by Monika Foltyn-Zarychta, Rafał Buła and Krystian Pera

Energies 2021, 14(3), 741; https://doi.org/10.3390/en14030741 - 31 Jan 2021

Cited by 17 | Viewed by 3183

Abstract

The transition of the energy system in Poland has a long time horizon and demands a substantial investment effort supported by proper economic evaluation. It requires a precise Social Discount Rate (SDR) estimation as discounting makes the present value of long-term effects extremely [...] Read more.

The transition of the energy system in Poland has a long time horizon and demands a substantial investment effort supported by proper economic evaluation. It requires a precise Social Discount Rate (SDR) estimation as discounting makes the present value of long-term effects extremely sensitive to the discount rate level. However, Polish policymakers have little information on SDR: the predominant practice applies a priori fixed 5% discount rate, while studies devoted only to Poland are quite rare. To eliminate this research gap, our paper aims at estimating SDR for Poland, applicable in energy transition policies. We derive SDR for three datasets varying in length, twofold: using market rates via Consumption Rate of Interest (CRI) and Social Opportunity Cost (SOC) of capital, and prescriptive Ramsey and Gollier approaches based on Social Welfare Function (SWF). The results indicate that the rates based on CRI and SOC deviate substantially with changing data timeframes and market conditions, while prescriptive methods show much higher time stability. Due to long-term planning horizons for energy policies, we argue for adopting, as SDR in Poland, the longest dataset’s Ramsey-based rate of 4.72% which can be reduced to 4.39% by Gollier’s precautionary term (reflecting the uncertainty over future consumption growth), which are our main findings. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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16 pages, 1459 KiB

Open AccessFeature PaperArticle

“My Electricity” Program Effectiveness Supporting the Development of PV Installation in Poland

by Piotr Olczak, Dominik Kryzia, Dominika Matuszewska and Marta Kuta

Energies 2021, 14(1), 231; https://doi.org/10.3390/en14010231 - 4 Jan 2021

Cited by 35 | Viewed by 3843

Abstract

There are a lot of studies that show the legitimacy of subsidizing renewable energy; however, some mechanisms are defective, and there are problems with the appropriate allocation of funds. Therefore, this paper aims to look at the situation of allocating funds to photovoltaics [...] Read more.

There are a lot of studies that show the legitimacy of subsidizing renewable energy; however, some mechanisms are defective, and there are problems with the appropriate allocation of funds. Therefore, this paper aims to look at the situation of allocating funds to photovoltaics (PV) micro-installations in Poland through the “My Electricity” program. The article presents the results of analyses aimed at identifying inequalities between provinces in the use of funds available under the “My Electricity” program and verifying whether these inequalities are getting worse and whether the intensity of support should not be territorially conditioned in terms of maximization an electricity production. As part of two editions of the “My Electricity” program (until 1 August 2020), over 64,000 PV micro-installations were created with an average power of approximately 5.7 kWp. The total installed PV capacity was 367.1 MWp (1st edition: 159.3 MWp, 2nd edition: 207.8 MWp). Financial resources (as a whole), in the second edition of “My Electricity” program, were distributed better than in the first edition. In the first edition, as much as 7.60% of funds were allocated inefficiently; in the second edition, it was only 3.88%. Allocation surpluses occur in provinces where the average disposable income is low and where there are a small number of households. There is a potential to introduce a territorial project selection criteria. The analysis shows that the criteria should promote provinces with higher disposable income and a larger number of households. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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13 pages, 293 KiB

Open AccessArticle

Impact of Trade and Financial Globalization on Renewable Energy in EU Transition Economies: A Bootstrap Panel Granger Causality Test

by Yilmaz Bayar, Mahmut Unsal Sasmaz and Mehmet Hilmi Ozkaya

Energies 2021, 14(1), 19; https://doi.org/10.3390/en14010019 - 22 Dec 2020

Cited by 31 | Viewed by 3079

Abstract

The globalized world has experienced significant environmental degradation together with raising global production and population. In this context, the employment of renewable energy use has become crucial for a sustainable environment and development. In the research, the mutual causality among renewable energy, trade [...] Read more.

The globalized world has experienced significant environmental degradation together with raising global production and population. In this context, the employment of renewable energy use has become crucial for a sustainable environment and development. In the research, the mutual causality among renewable energy, trade and financial globalization, real GDP per capita, and CO₂ emissions in EU transition economies experiencing the integration with global economy was explored through bootstrap panel Granger causality test for the period of 1995–2015. The causality analysis revealed a unilateral causality from trade globalization to renewable energy in Estonia, Latvia, and Slovenia, and from renewable energy to trade globalization in Croatia and Lithuania. However, no significant causality between financial globalization and renewable energy was revealed. On the other side, a unilateral causality from CO₂ emissions to renewable energy in Lithuania and Slovenia, and from renewable energy to CO₂ emissions in Czechia, Hungary, and Latvia and a reciprocal causality between renewable energy to CO₂ emissions in Romania and Slovakia and a unilateral causality from real GDP per capita to renewable energy in Czechia, Romania, and Slovenia was discovered in the causality analysis. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

18 pages, 2443 KiB

Open AccessArticle

An Analysis of Support Mechanisms for New CHPs: The Case of Poland

by Krzysztof Zamasz, Radosław Kapłan, Przemysław Kaszyński and Piotr W. Saługa

Energies 2020, 13(21), 5635; https://doi.org/10.3390/en13215635 - 28 Oct 2020

Cited by 12 | Viewed by 2398

Abstract

The increasing demand for energy on a global scale, as well as the social pressure related to counteracting the effects of climate change, has created favourable conditions for the transformation of energy sectors towards the possession of low-emission generation sources. This situation, however, [...] Read more.

The increasing demand for energy on a global scale, as well as the social pressure related to counteracting the effects of climate change, has created favourable conditions for the transformation of energy sectors towards the possession of low-emission generation sources. This situation, however, requires investment actions in order to modernise the existing power and CHP (Combined Heat and Power) plants and construct new units. These issues, together with the climate and energy policy pursued by the European Union, are the main reasons for the emergence of various governmental mechanisms supporting the replacement of old coal power units with highly efficient cogeneration units based on gas turbines and other units. The support may take different forms. This article discusses two examples of mechanisms available on the Polish market, i.e., (i) the capacity market and (ii) promoting electricity from high-efficiency cogeneration in the form of individual cogeneration premium. The purpose and novelty of the analysis was to identify the pros and cons and the key parameters which determine the advantage of a given mechanism. Both these mechanisms have been characterised and then compared via the example of a planned cogeneration gas unit (an open cycle gas turbine—OCGT). This assessment was made using discount methods based on the FCFF (free cashflow to company) approach. The analysis did not bring forward an unequivocal answer as to the absolute advantage of any of the solutions, but it was able to point out significant problems related to their practical use. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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16 pages, 1365 KiB

Open AccessArticle

Grand Challenges in Central Europe: The Relationship of Food Security, Climate Change, and Energy Use

by Domicián Máté, Mohammad Fazle Rabbi, Adam Novotny and Sándor Kovács

Energies 2020, 13(20), 5422; https://doi.org/10.3390/en13205422 - 16 Oct 2020

Cited by 20 | Viewed by 4334

Abstract

Pursuing various sustainable development goals is posing new challenges for societies, policymakers, and researchers alike. This study implements an exploratory approach to address the complexity of food security and nuance its relationship with other grand challenges, such as energy use and climate change, [...] Read more.

Pursuing various sustainable development goals is posing new challenges for societies, policymakers, and researchers alike. This study implements an exploratory approach to address the complexity of food security and nuance its relationship with other grand challenges, such as energy use and climate change, in Central European countries. A multiple factor analysis (MFA) suggests that the three pillars of food security relate differently to climate change: food affordability and food accessibility positively correlate with climate change, while food quality has a negative association with temperature rise. However, if countries switched to renewable energy resources, all three pillars of food security could be achieved simultaneously. The study also underlines regional inequalities regarding grand challenges and emphasizes the need for innovative local solutions, i.e., advances in agriculture systems, educational programs, and the development of environmental technologies that consider social and economic issues. Full article

(This article belongs to the Special Issue Economic and Policy Challenges of the Energy Transition in CEE Countries)

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