Wind power is not only about clean energy at a low price. The development and operation of this industry also means thousands of jobs in manufacturing, construction and ongoing maintenance of turbines.

Long-term and ambitious plan = maximizing benefits

– Outlining a long-term development plan for the wind industry is key to maximizing the economic benefits related to expansion of onshore wind capacity. In the scenario with dynamic capacity increase to 24 GW by 2040, up to 42,000 jobs can be created around the sector, including ca. 11,000 in companies cooperating directly with the wind industry. The stagnation scenario, with capacity increase to just 10 GW in 2025 and then just restoration, would result in weakening of domestic suppliers and a drop in employment around the industry to 13,000 full-time equivalents – explains Aleksander Śniegocki, head of the Energy and Climate project at WiseEuropa and co-author of WiseEuropa’s analysis paper, entitled “Contribution from domestic suppliers to the development of onshore wind power industry and its impact on the Polish labour market until 2040”, presented at the PWEA2019 Conference.

 

The reports estimates that each additional 10 MW in onshore wind in Poland would generate 61 direct jobs at the preparation and construction stage (173 jobs including indirect employment) and 2 additional full-time jobs at a wind farm during its lifetime (6 jobs if indirect employment is included).

It is an opportunity to support the transition in regions relying on the conventional energy sector. With the increase of total number of jobs related to onshore wind power, there is also an increase in the share of domestic suppliers and subcontractors (local content) in the supply chain, and the position of Polish companies on the international market is strengthened.

– Today it amounts to over 50 percent over the wind farm’s entire life cycle, and it can reach up to 65 percent if favourable conditions for the development of the industry are created in Poland – Śniegocki adds.

 

The WiseEuropa report debunks the myths repeated in the past about the weak economic impact of wind power. The development of onshore wind capacity has the highest contribution in creating the local supply chain among all energy generation technologies – says Janusz Gajowiecki, President of the Polish Wind Energy Association.

 

 

There is a lot to fight for. In 2018 the wind power industry in the EU generated €36bn in value added, with its exports amounting to €8bn, and with 300,000 people employed in the sector.

 

Wind is a success story for the European industry. And the more ambitious the energy policy of a given country, the larger the economic benefits, also on the local level – adds Giles Dickson, CEO of WindEurope, the largest European wind industry organization. He stresses that future investments will go to countries with the most ambitious decarbonisation policies and the most dynamic plans for wind power deployment.

In Poland, the dynamic development scenario will not materialize without relaxing the distance rules for wind farm location, introduced by the Wind Turbine Act of July 2016 and resulting in halting the increase in installed capacity in wind in recent years.

 

Dynamic wind development only after liberalization 10h rule

The first harbingers of change are the auctions – both those carried out in November 2018 and those planned for 2019. The government decided to contract approximately 3.5 GW in wind, resulting in an increase of total onshore wind capacity to ca. 10 GW by 2025.

 

We do not yet know the dates for this year’s auctions. However, as Katarzyna Szwed-Lipińska of Energy Regulatory Office (ERO) points out, the success of auctions closely depends on the pace of work on the RES Act amendment and earmarking funds for modernisation of the electronic auction platform (IPA) – the ERO will make all possible efforts to support generators on the prequalification stage. Nevertheless, we would like to ask for a practical approach to its feasibility in the context of relentless lapse of time – the expert says. Time is necessary to announce a tender for the modernization of the IPA in order to adjust the system to the numerous changes to legal regulations, to announce the auction with sufficient advance notice, and to carry out the prequalification process.  – We already have the second half of 2019, so these tasks will become increasingly difficult with the lapse of time – Ms Szwed-Lipińska points out.

 

The companies are getting ready to the auctions, but an alternative may soon appear in the form of corporate power purchase agreements (PPAs) between RES energy generators and offtakers. Such a development path for RES within the PGE group is indicated by Arkadiusz Sekściński, the acting CEO of PGE EO.

How much new capacity in renewables, primarily in wind and PV, is built shortly after 2020, will depend on how much the government will contract in particular auction baskets. – At PGE group we are pursuing an ambitious target of 25-percent share of domestic energy production form RES in 2030. We are currently building two wind farms with a total capacity of 90 MW (Starza/Rybice and Karnice II) after winning the auction in November 2018, and we are active in the solar power market – says Arkadiusz Sekściński, the acting CEO of PGE EO. In his opinion, the contracted volume – in a dynamically changing market – may derive from the development of new technological solutions, the public perception on investing in specific renewable sources or the costs of energy generation in particular RES sectors. – It is a significant challenge for the legislator to respond to these changes while ensuring the stability of the legal system for companies interested in investing in renewable energy sources – Mr Sekściński emphasizes.

As noted by Bart Dujczyński of ROMO Wind, who moderated the panel on optimizing wind farm operation based on data access, analysis and interpretation, we are at a turning point in the investment cycle for wind farms in Europe and globally. – The subsidies have either run out, will soon be phased out, or in some cases have been modified during their lifetime, which means that wind farm operators have to think in a more analytical manner to optimize the operation of their assets. The technology is progressing, resulting not only in newer, more powerful turbines, but also in modernization of existing wind farms – says Dujczyński.

 

The reviving industry is waiting for another step from the decision-makers – relaxing the rules to allow for modernization of existing wind farms using state-of-the-art turbines and for development of more projects in the future. – If it doesn’t happen, energy prices in Poland will remain under constant pressure of increasing costs related to the high share of energy from fossil fuels in our energy mix. We will also lose the chance to build a strong industry around the wind power sector and to create more well-paid jobs – Janusz Gajowiecki warns.

 

 After 3-4 years of standstill we have to look with optimism at the new wave of investment in wind resulting from last year’s and this year’s planned auction. Price competitiveness of onshore wind power suggests the need to have a debate about the future development of the industry – says Michał Kaczerowski, CEO of Ambiens, taking part in the discussion panel on regulations, taking place during the second day of PWEA2019 Conference. In his opinion, Poland is getting more mature towards repowering (comprehensive modernization of wind turbines combined with capacity increase) and needs new wind farms in good locations accepted by local communities. – A number of previous experiences and the past period of reflection allow for an objective examination of the industry’s conscience and for development of new standards – Mr Kaczerowski adds.

What were the effects of the introduction of the distance law for developers – the Ambiens infographic shows

Such standards may come in the form of the Code of Good Practice developed by the Polish Wind Energy Association. Work on the document started back in 2018 in response to the needs indicated by the Ministry of Energy. The ministry would like to see the development of wind power without conflicts, and sees an opportunity in familiarizing the general public with the topic of renewable energy sources, including wind power.

Code of Good Practice the argument for liberalization of the law

According to the former Deputy Minister for Energy and the current MEP Grzegorz Tobiszowski, the key to success is to make decisions in dialogue with local communities. – The most important thing is to explain and educate people, to show them the future, as new things always cause some resistance – said Mr Tobiszowski, who opened the PWEA2019 Conference during the plenary session on 11 June.

The objective set by the Ministry of Energy is in line with the intentions of the industry, who believe that the rules of the game that are already being followed, and the voluntary actions taken to the benefit of local communities, may give a new momentum to the development of onshore wind in Poland. Especially that Poland has already become a large construction site for wind turbines.

 

Investments in wind power are long projects taking many years. Entrepreneurs making a decision to build a wind farm are aware that this is just the beginning of a long process which will have a significant future impact on the neighbourhood – says Magdalena Sobczyńska, board member of Novenergia and coordinator of works on the Code of Good Practice at PWEA. That is why, in her opinion, the Code should not only be a set of regulation and guidelines for the wind power industry. – We would like it to become an inspiration for investors, who will not only stick to rigid rules, but also take part in the process of designing the rules allowing the wind power industry to become a society-friendly source of energy – adds Ms Sobczyńska.

 

The Code of Good Practice draws upon proven processes carried out in the European Union, especially where they have led to the creation of positive attitudes in the investment process for onshore wind farms.

– In Poland we are able to meet the targets related to renewable energy sources, and the discussion with the industry makes it possible to solve problems and face challenges – says Mr Tobiszowski.

The former Deputy Minister of Energy was awarded by the Polish Wind Energy Association with a title of “Wind Power Personality” for constructive dialogue with the wind industry. Alongside Mr Tobiszowski, the awards were also presented to: Katarzyna Szwed-Lipińska, Director of Renewables Department at the Energy Regulatory Office (for successfully running the auctions in 2018), Magdalena Sobczyńska from Novenergia (for coordinating the work on the Code of Good Practice), Marta Pruszyńska from ERG (for developing the formula to help mitigate the oversupply in the green certificates market), Tomer Eizenberg, CEO of Mashav Energia (the largest auction winner of November 2018 with Potęgowo wind farm), and Bartłomiej Derski, journalist at WysokieNapięcie.pl (for thorough analyses of the RES market in Poland).