Charter for the Efficient Transformation of Poland’s Power Distribution Networks – President of the Energy Regulatory Office hosted the Steering Committee Meeting
On 16 March 2022, the Steering Committee for the Team established in October 2021 to develop the “Charter for the Efficient Transformation of Poland’s Power Distribution Networks” held its meeting at URE.
The changes already taking place in the Polish energy sector, exemplified by the intensive development of renewable energy sources, pose a challenge to all market participants, including the regulator. The activities undertaken by the President of URE are aimed at implementing a transparent and predictable regulatory policy, acceptable to the government, businesses and the public alike. These assumptions are the starting point for the work of the Team tasked with the drafting of the “Charter for the Efficient Transformation of Poland’s Power Distribution Networks” headed by the Steering Committee.
The work carried out by the Team for nearly six months is expected to enable the optimum, most efficient use of distribution networks in our country, which must be ready for the accelerated development of distributed power generation.
The meeting was opened by Rafał Gawin, the President of URE, and the participants included Ireneusz Zyska, Secretary of State at the Ministry of Climate and Environment, Government Plenipotentiary for Renewable Energy Sources, and Piotr Dziadzio, Undersecretary of State, Chief National Geologist, Government Plenipotentiary for the State’s Raw Materials Policy.
In the face of the energy transition, the responsibility to deliver rests fully with us. The transformation must be implemented in a well-planned and fair manner - said Minister Ireneusz Zyska during the meeting.
The main topics discussed by the Steering Committee concerned the formal and legal requirements for operators, as well as possible scenarios for network investments up to 2030.
The meeting was also attended by the representatives: of:
- Ministry of Development Funds and Regional Policy,
- Ministry of State Assets,
- Ministry of Development and Technology,
- Government Plenipotentiary for Strategic Energy Infrastructure,
- Polish Power Transmission and Distribution Association,
- small distribution system operators - members of the Polish Association of Independent Power Distributors,
- Polskie Sieci Elektroenergetyczne (Polish Power Grid),
- independent market experts, including academics and industry practitioners.
During the meeting, the results of the work carried out in recent months by the individual Task Groups were presented: The legal team presented the formal and legal conditions that apply to operators, in particular in the area of planning and implementing network investment projects, including connections to the grid. Meanwhile, the development team discussed two scenarios for investments in network infrastructure up to 2030, broken down into essential projects and those required for the implementation of the National Energy Policy until 2040.
The funds needed to make the necessary investments in the power sector are enormous. Coordination and optimisation of the undertaken activities as well as identification and indication of various available sources of financing of these investments are crucial for the achievement of objectives set by the Polish Energy Policy until 2040 - said during the meeting Minister Piotr Dziadzio.
- The scenarios presented today should be adopted as directional recommendations for further studies. Since a significant part of the analytical work, which required a huge commitment of the Team members, has already been completed, in the coming weeks we will continue reviewing further results of the Team’s efforts within the Steering Committee - said Rafał Gawin, President of URE when wrapping up the meeting.
- On 6 October 2021, the President of URE inaugurated the Project Team to work out a Common Agreement of the Sectoral Regulator and the Distribution Sector known as the “Charter for the Efficient Transformation of Poland’s Power Distribution Networks”.
- The project objectives are:
- diagnosis of key needs related to network operation, resulting from formal and legal requirements applicable to DSOs in the 2030 time horizon and related to the growing number of renewable sources connected to the DSO networks,
- identification of appropriate instruments to meet these needs,
- identification of financing methods and sources and assessment of their impact on the tariff (society),
- adjustment of the DSO regulatory model to support investment activity, in particular in projects enhancing the flexibility of network operation (including optimisation of RES connections and maximisation of RES power consumption),
- proposals for legislative changes to facilitate the implementation of network investments and access to aid measures.
- In November 2021, individual Task Groups started working on the definition of solutions relevant to the national network infrastructure in the context of sector transformation. The groups included representatives of distribution system operators.