Economic analysis of renewable energy sources (OZE) most likely in July

According to the statement issued by the Director of  the Institute of Renewable Energy (IEO), Janusz Pilitowski, the Institute has got 30 days for preparing of the economic analysis of renewable energy sources for the Ministry of Economy; this time limit, however, is to be counted from the date of signing of the agreement. It means that the Ministry will not receive the analysis by the end of June.

“The agreement has not been officially signed yet. Although it has already ‘left’ OZE Department it must now go through the Legal, Budget and Finance Departments of the Ministry of Economy. The Institute will then have 30 days” – said Pilitowski in an unofficial conversation during Photovoltaics forum.

Three weeks ago, when the Institute won the contest, Grzegorz Wiśniewski, the President of IEO declared that the Institute would try to have the analysis prepared by the end of June. He then also informed that the analysis would cover individual renewable energy source technologies separately according to their market share and expected development as specified in the National Action Plan (KPD) for OZE. The analysis will specify the selling price of each type of renewable energy which should be adopted for the investment to be viable economically taking varied costs of technologies into consideration. The analysis is supposed also to determine the expected amount of support allowing the individual technologies to stay operational on the market.

The Institute of Renewable Energy has recently informed that it “will start with calculating of the levelised (over the lifetime of the project covering the period of expected support) cost of energy generation in installations included in KPD, and then shall evaluate the “financing gap” in relation to the cost of the energy unit (PLN/MWh) per renewable energy source type and technology in 2013. Next, it will evaluate the amounts of the correction factors necessary to realize the investments in years 2013-2020, taking into account the fluctuations of technology costs and prices of electricity supplied to the national Grid.”

Determination of the amount of support is to be based on, according to the Institute, reimbursement of justified investment expenditures and operation and maintenance expenditures incurred for less developed, though ecologically clean and showing potential of development (by 2020), technologies.

At the beginning of June, IEO approached various renewable energy producers asking them to provide, by filling of a questionnaire, data showing costs of technologies as well as basic financial figures for realized (actual data) or being realized (partially approximate data) investments in various renewable energy sources, including both, small and large projects.

“In order to ensure complete transparency, high quality and representativeness of assumed input data, they are collected overtly by inviting all interested companies, experts or people representing individual renewable energy technologies to fill in the questionnaire” – informed the IEO.

The questionnaire has been prepared primarily for investors, developers, contractors, technology suppliers, installation and grid operators as well as for academics, consultants, and financial institutions. Data provided should reflect domestic investments realized in years 2009-2013 or being realized (investments which have been started). The questionnaires have been also sent to trade associations and financial institutions which can choose the most representative investments themselves.

IEO informs that the data from the questionnaires will undergo statistical analysis and verification.

Source: http://www.reo.pl