Energy Efficiency Development Policy Loan

closed

Closed

The Government of Poland faces a dilemma: how can harmful emissions are decreased, while maintaining its focus on economic growth to converge with the European Union (EU)-15 and do this within a constrained fiscal environment. The World Bank (the Bank) worked closely with the Government during 2009-10 to address this conundrum in preparing the 2011 report entitled 'transition to a low emissions economy in Poland', analyzing the carbon abatement potential in Poland and the associated economic impact. The analysis identified energy efficiency and selected renewable energy investments as the priority near- to medium-term investments. Although energy efficiency options are low cost, market penetration has been limited. This DPL supports policy actions that are designed to address market rigidities. Poland faces a problem in achieving bold renewable energy targets as there is little hydropower or deep geothermal potential and solar power is expensive. Biomass applications have recently shown promise and are, along with wind power and biogas, expected to be the focus of attention in meeting Poland's 2020 renewable energy target of 15.0 percent of final energy consumption from renewable energy sources. To support the implementation of its renewable energy policy, the Government has established a green certificates program that obliges electricity suppliers to increase the share of renewable energy in their portfolio. In addition, subsidies are available from EC funds used to help decrease renewable energy investment costs as part of the transition to reduce emissions.

FY17 - Energy and Extractives

World Bank Group

Project

Solar, Power Generation (CCGT), Biomass, Wind, Geothermal, Government, Hydro