Gas fuel in Poland’s energy strategy – bridging and change

More energy from renewable sources, moving away from coal as soon as possible, legal, investment solutions for biomethane and hydrogen, as well as changes to legislation in the context of the obligation to store gas – these are the most important issues highlighted by Małgorzata Banasik, vice-president of the Association of Energy Law Lawyers, during the industry conference Gazterm.

The discussions at Gazterm are always interesting and inspiring, which is generally relevant to the challenges we face in the energy sector. Gas is often referred to as a transitional or bridging fuel in the energy transition. Let us have no illusions. This means that we need to think at least three steps ahead and be prepared for change. This in turn determines the need for a number of modifications to the Polish gas market. Gas is not and will not last forever. It will have to be abandoned relatively quickly and have a scenario ready for what comes next.
Step one – the need to update Poland’s Energy Policy until 2040 by increasing the share of renewable energy in the Polish energy mix and unequivocally moving away from coal-generated energy. Of course, this requires flexible, modernised distribution networks. This is being taken care of by both the PSE and the individual Distribution System Operators, who are not only maintaining but consistently increasing development funds for this purpose, skilfully reaching for EU funds for this purpose. I also have high hopes in this regard from the release of funds under the KPO.
Step two – comprehensive regulation of the biomethane plant investment process. The rapid development of small biomethanation plants (up to 0.5 MW) has shown that legislative changes to the procedure for obtaining the relevant decisions and permits, including above all the repeal of the requirement to obtain an environmental decision, and the facilitation of access to funds from the National Fund for Environmental Protection and Water Management, are conducive to the implementation of such investments.
Aiming to build large biomethane plants that use agricultural, food and municipal waste requires simplifying and accelerating the investment process for them as well, e.g. by waiving the need to obtain an environmental decision or simplifying this procedure. Furthermore, there is a need to ensure consistency in the application of the rules governing the operation of biogas and biomethane plants, also with regard to the obligations to obtain individual operating permits, such as waste treatment permits.
There is also a need to provide funds to cover the costs of adapting biomethane to the parameters of gaseous fuel in transmission networks, of receiving and compressing biomethane, which should also be reflected in NFOŚiGW programmes.
Step three – the need for legal regulation of CO2 capture, storage and transport, as well as provisions for the construction of hydrogen transport networks (hydrogen pipelines) and new rules on gas stocks.
It seems most urgent to repeal the obligation on industry to bear the costs of gas stocks and to extend this obligation to public entities and/or trading companies that supply gas to so-called protected entities (e.g. households, schools, hospitals, heating plants).
Such legislative action will have the effect of removing the obligation to hold compulsory gas stocks from entities that, in reality, will never be able to use these stocks. As a consequence, this would allow the gas market to become more competitive and, consequently, to develop in a desirable way and release development opportunities for specific entities.