Tomek Snazyk

Gradual Energy Transformation in Poland Poland's state development fund, PFR SA, is stepping up as an anchor investor in green bond sales to drive demand and support the country's transition away from its coal-heavy energy production. PFR aims to allocate the majority of its annual investments—up to 3 billion zloty ($731 million)—to energy projects, including offshore wind farms, power storage systems, and gas-fired plants, according to Deputy CEO Mikolaj Raczynski. I see this as both a significant challenge and opportunity—this transformation is a positive step for a country where almost two-thirds of its domestic energy production came from coal in 2023. Gas continues to play a vital role in Poland’s energy mix during this transition. Despite the global emphasis on renewable energy, Poland’s reliance on gas remains crucial, especially as Europe faces increasing energy demands and challenges related to the reduction of Russian gas supplies. Bloomberg reported that Poland has also declared its readiness to increase energy exports to Ukraine, replacing Slovakia, should it cut off power, as threatened by Slovakia’s Prime Minister at the end of the year. Sources: https://lnkd.in/epTPVZDf https://lnkd.in/emwprGSM https://lnkd.in/eUBCSVTc

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Yesterday, I had the pleasure of speaking at the "Aktualności Rynku Energii" conference organized by MMC Polska, where I discussed, among other topics, the new balancing market rules that came into force in Poland on 14 June 2024, known as the Terms, Conditions, and Methodologies of Electricity Balancing (Polish: Warunki Dotyczące Bilansowania).   These new rules bring significant changes to the market, including: 🔹A new structure of balancing market participants;  🔹A new structure of balancing market objects;  🔹A new catalogue of balancing services, including Frequency Containment Reserve (FCR);  🔹15-minute settlement periods for balancing energy and imbalances.   SSW experts have prepared a comprehensive overview of these changes, which we are pleased to present below ⬇️   Should you have any questions, please feel free to reach out to Dominik Strzałkowski, Grzegorz Mikos, Michał Ilasz, or me, Paweł Michałek.   #wdb #tcm #balancingmarket #balancing #reform #electricitymarket #power #electricity #energy #renewableenergy #RES #storage #BESS #FCR #TSO #transmissionsystem

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The introduction of the capacity market mechanism adds a new commodity into the Polish energy market; net available capacity. Or, in other words, buying and selling the readiness to supply energy to the grid. Read on: https://rebrand.ly/rvynqqw #Energytransition #energystorage #Poland #Energymarket

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The introduction of the capacity market mechanism adds a new commodity into the Polish energy market; net available capacity. Or, in other words, buying and selling the readiness to supply energy to the grid. Read on: https://rebrand.ly/rvynqqw #Energytransition #energystorage #Poland #Energymarket

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GREEN.. to Energy Transition

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🌿 Thrilled to have represented the Ukrainian Bioenergy Association of Ukraine and Dentons at the Green Gas Poland 2024 conference! I had the opportunity to present the immense potential of Ukrainian biogas and biomethane projects and highlight the opportunities for Polish businesses in this growing sector. 🚀 During my presentation, I discussed: Successfully implemented projects in Ukraine, Key factors facilitating the implementation of such projects, Geographical peculiarities influencing project locations, And various scenarios for the growth of biogas and biomethane production in Ukraine. With Ukraine's rich biomass resources and growing focus on renewable energy, there's tremendous room for collaboration, innovation, and investment, especially with our Polish partners! 🤝 Exciting times ahead for biogas and biomethane development, driving sustainable energy solutions in the region! UABio Dentons Ukraine (official name LLC Dentons Europe) #Bioenergy #RenewableEnergy #Biogas #Biomethane #GreenGasPoland #UkrainePolandCollaboration #Sustainability #Dentons #UkrainianBioenergy

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The time has come to read a very interesting report: the GREENTECH REPORT POLAND 2024 prepared by Accelpoint, Taylor Economics in partnership with PKO BP, and EIT Climate KIC   We are delighted to see the presence of three of our portfolio companies (Solwena, The SmokeD wildfire detectors, and Waste24) in the cited report. EEC Ventures is at the forefront of green VC funds, as proven by the number of portfolio companies mentioned in the report in relation to the total number of all companies in the portfolio.   Our companies have verified and confirmed the market value of the technologies and their products. They have also established partnerships with large regional or global players, and their revenues are growing.   Both The SmokeD wildfire detectors and Waste24 are already generating revenue in foreign markets. Solwena is working with major international corporations and is in the process of negotiating agreements that will result in revenues from abroad. The report contains a very thorough analysis, starting from the good definition of concepts such as greentech, cleantech, climatetech, and many interesting analyses. The report paints a picture of a young and delicate ecosystem. Quantitatively, the community of 133 "green" startups is indeed a very small percentage compared to the 4,900 technological companies in Poland. These startups are in the early stages of development, they still have modest revenues, and individual investors dominate among the investors. VC funds associated with PFR Ventures are among the largest capital donors This early stage of the system is likely the reason why less than one-third of the described startups have sought R&D funding, which is usually an appropriate source of financing for projects at this stage. It is also surprising to note that Hungary and Lithuania have attracted more investment in this sector than Poland. Reading the entire report is highly recommended.  

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The introduction of the capacity market mechanism adds a new commodity into the Polish energy market; net available capacity. Or, in other words, buying and selling the readiness to supply energy to the grid. Read on: https://rebrand.ly/rvynqqw #Energytransition #energystorage #Poland #Energymarket

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The introduction of the capacity market mechanism adds a new commodity into the Polish energy market; net available capacity. Or, in other words, buying and selling the readiness to supply energy to the grid. Read on: https://rebrand.ly/rvynqqw #Energytransition #energystorage #Poland #Energymarket

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How does the introduction of corporate PPAs impact the energy sector, and what benefits do they offer to the Ukrainian market? 👇

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In Ukraine, the connection of biomethane producers to gas distribution systems has been simplified to promote exports The National Commission for Regulation of the Energy Market of Ukraine has simplified the technical requirements for connecting biomethane production facilities to gas distribution systems. A newly approved resolution establishes the procedure for submitting and considering applications for joining to the distribution network, as well as setting requirements for connection points and biomethane accounting. In general, the resolution will contribute to the sustainable development of Ukraine’s energy sector and transparency in the procedure for connecting biomethane plants to existing infrastructure. As noted by the Ministry of Energy, joint work with the regulator is underway to strengthen the Ukrainian biomethane market’s integration with the EU market. This decision will contribute to the state’s energy independence through the development of domestic gas production and diversification of supply sources. This decision’s impact on the agricultural sector, which receives new agricultural waste processing opportunities, is especially important, and it will also contribute to the development of a circular economy. https://lnkd.in/dqEu_xiy

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Subsoil Use in Ukraine: PSA In 2019, Ukraine launched its largest wave of tenders for production sharing agreements (“PSA”), offering investors 12 promising oil and gas blocks spanning a total area of 11,000 sq. km. However, the full-scale invasion has left only one field in western Ukraine operational, with force majeure clauses invoked under all other PSAs. Despite these challenges, the future of PSAs in Ukraine looks promising. In early 2023, the Cabinet of Ministers approved a list of 26 strategically important fields, set for exploration and production under the PSA framework. These fields contain a range of critical minerals, including lithium, titanium, and uranium. Here is a quick overview of the PSA framework and its benefits in Ukraine: • long-term agreements (up to 50 years) for investment in the exploration and development of large oil, gas, or strategically important mineral fields; • state support in obtaining permits and approvals required for PSA performance; • protection for investors against adverse changes in the laws (excluding laws related to national security, defence, environmental protection, and public order); • disputes may be resolved in international arbitration, with a waiver of sovereign immunity; • exemptions from customs duties, licensing, and quotas on imports for PSA purposes and exports of produced goods under the PSA; • significantly reduced royalty rates (2% for oil and condensate, 1.25% for natural gas). Stay tuned for more updates on subsoil use later this week!

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At GOLAW, we understand the importance of this development for businesses involved in renewable energy. Our Energy lawyers, Oleksandr Melnyk and Khrystyna Zimenko, have provided clear answers to the most frequently asked questions about the Regulator’s decision, covering: 💡 How will the new register impact the renewable electricity sector? ⏳ How quickly should you act to submit your application? 🌍 How can this step facilitate Ukrainian companies' entry into the European market? Stay informed and ensure your business is ready to seize new opportunities in the energy sector! Read the full insights here👇 #renewableenergy #energylaw #ukrainemarket #GOLAW #energytransition

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Is the Ukrainian market ready for the hydrogen revolution? We are convinced that hydrogen is the fuel of the future. But are we ready for large-scale changes in the energy sector? The public sector is working to: - accelerate the development and implementation of hydrogen technologies. - create favorable conditions for investment. - popularize the advantages of hydrogen energy. Share your opinion: what steps still need to be taken to develop the hydrogen industry in Ukraine? #EnergyTransition #hydrogen #Ukraine #HydrogenBridge

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During DLC - Distribution Law Center ambassadorship we aim not only to boost an interest in our common multijurisdictional project but also to cast some lights on the local particularities in the area of vertical agreements. Interested in decisional practice in Poland? Here is the most concise review you may get about Poland by Agata Jurkowska-Gomułka

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It’s always exciting to participate in events like the Re-Source Annual Conference. This year, over 1400 professionals - energy buyers and sellers - came together to discuss the growing interest in Power Purchase Agreements (PPAs) and energy procurement. While Lithuania hasn't yet become a leader in the PPA market, we explored reasons for this, such as a highly developed prosumer solar market and limited large-scale offtakers for wind-generated power. However, as the European energy market integrates, cross-border PPAs could create new opportunities for Lithuanian developers. While the Re-Source event primarily focused on PPA arrangements, several other topics addressed were also highly relevant for Lithuania. Currently, across Europe, approximately 500 GWh of energy remains "stuck" due to curtailments in various countries. Price fluctuations - from negative prices to extreme highs - and curtailments are pushing market participants to adopt storage solutions and flexibility services. On the policy side, greater focus on grid resources, regulatory frameworks, and financial support for flexibility services and storage connectivity is essential. Initiatives like the €180 million state aid scheme for the installation of transmission-connected storage batteries are exactly what the market needs. #renewable #energy #insights #market

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📅 At the beginning of August, Ivan Balytskyi, a partner at our law firm and the head of the legal committee of the Solar Energy Association of Ukraine, held an open session on the topic: "Tax Audits in 2024: How to Prepare for Renewable Energy Producers." 👤 Together with Nataliia Kurilenko, the head of the tax practice at "Sokolovskyi and Partners," they discussed how the "tax" environment for renewable energy producers has changed and how to protect their interests in disputes with tax authorities. The colleagues talked about the tax audit schedule, the necessary documents, and the steps to prepare for and during the audit. ❗️💬 According to Mr. Ivan: "Following the lifting of the moratorium on audits, we see increased activity from the tax authorities. Every day, more and more new court cases on tax disputes involving solar generation facilities emerge. Therefore, renewable energy producers should already be concerned about tax 'hygiene': checking the availability of all primary documents, ensuring their compliance with legal requirements, and verifying the accuracy of accounting and tax records by conducting an independent audit." Read more about the issues discussed during the session and the conclusions reached by the experts in the publication👇

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Grants and subsidies for businesses in Poland: 📌 Grants for startups and innovation Startups and young enterprises in Poland can access specialized grants aimed at fostering innovation and accelerating business development. These grants support early-stage companies in developing unique products and services, covering costs related to market research, product testing, and initial marketing campaigns. 📌 Regional development grants Aimed at reducing economic disparities between different regions of Poland, these funds support local businesses in developing infrastructure, enhancing services, and promoting regional trade. These subsidies can cover a wide range of expenses, from infrastructure development to training and employment support. 📌 EU Structural Funds  As a member of the EU, Poland benefits from Structural Funds, which are intended to strengthen economic and social cohesion by correcting imbalances between regions. 📌 Subsidies for Job Creation To combat unemployment and stimulate economic activity, various Polish grants are available to encourage businesses to create new jobs. These subsidies often provide direct financial incentives to companies that hire unemployed workers, graduates, or other specific groups. Such programs not only aid in reducing unemployment but also help businesses manage labor costs during expansion phases. 💡 Key Institutions and Areas of Support The National Centre for Research and Development (NCBR) and the Polish Agency for Enterprise Development (PARP) are the main institutions responsible for distributing EU funds. They offer financing through regional and national programs, which include: - Property Purchase and Infrastructure Expansion. - Innovation Support. - Ecology and Sustainable Development 💡 Amount and Conditions of Subsidies The amount of the non-refundable subsidy can reach up to 80% of the project costs, although the final value of support depends on many factors, such as the investment location or the size of the enterprise. 💡 Important Grant Programs for 2024 - **SMART Pathway (FENG 1.1):** Under this program, companies can receive support for modular projects that cover various areas of activity, depending on the needs and profile of the enterprise. - **Dig.IT:** A program focused on supporting the digital transformation of Polish SMEs, funding software acquisition, cloud services, and IT training among others. - **Eurogrants (FENG 2.12):** This program enables the financing of costs related to preparing European projects, which is crucial for companies focusing on innovation and international development. 💡 How to Obtain Funding? The application process requires precise preparation of the application and meeting specific criteria, which can be a challenge. Therefore, consulting with experts in law and finance who can help understand the requirements, prepare documentation, and manage the project after receiving funding is recommended. #poland #polishbusiness #entrepreneur

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