Law
Renewable energy: a conundrum Law sees renewable energy as an opportunity for local communities to grow. Not all of them do. Michał Paprocki
Lawyer, partner at Kancelaria Radcowska Chmaj i Wspólnicy
Using the renewable energy potential at local level is a legal responsibility of local authorities. By using renewable energy local governments may ensure secure energy supplies and foster economic development as well as environmental conservation. In addition, integrating energy supply and demand side, theoretically, makes energy services more accessible to consumers at the lowest prices possible. Global electricity consumption has tripled in the last 30 years and the demand will continue to grow. Energy prices are on the raise. There is an ongoing discussion on how long the reserves of fossil fuels will last. At present, only 8.4% of electricity is generated in Poland from renewable sources while as much as 91% is produced from coal, including lignite. In this sector, innovation is important not only in the context of technological and economic development—it is also a factor in energy security and environmental protection.
Obligation The Local Government Act puts an obligation on local authorities to deal with energy and environmental issues. Local governments’ tasks include planning and organizing the supply of electricity, heat and gaseous fuels. Among the most important obligations is the responsibility of the district administrator/mayor to prepare draft guidelines for a plan for heat, electricity and gas fuels supply to the local district or its part. The
guidelines should determine the potential to use existing surpluses and local sources of fuel and energy, including electricity and heat from renewable sources, electricity and heat from cogeneration sources, and waste heat from industrial processes.
Timing The guidelines when adopted by the local council become a formal planning document, which takes into consideration the renewable energy sources existing in the area, and their environmental and economic advantages. Under Article 17 of the Jan. 8, 2010 law amending the Energy Law and some other laws (Journal of Laws, no. 21, item 104), local governments are required to adopt the guidelines or update them within two years after the law came into force. The deadline was on March 12. Only 30-40% of local governments fulfilled that requirement. Energy innovation is impossible without a cooperation between energy companies and local governments. Meanwhile there is a problem in bridging the gap between the two spheres. Local authorities complain of insufficient investment; businesses complain about the lack of sufficient local regulations.
Benefits Economic considerations also weight in favor of investment in renewable sources—the benefits for the local government include receipts from property tax and from the lease of
Energy innovation is impossible without a cooperation between energy companies and local governments. Meanwhile there is a problem in bridging the gap between the two spheres. Local authorities complain of insufficient investment; businesses complain about the lack of sufficient local regulations.
municipal land. Other benefits are associated with the development of new technologies and innovation, and the expansion of transmission and transport infrastructure. Renewable energy projects may attract other kinds of investment to the local district, which wins a reputation as being friendly to investors, new technologies and the natural environment. The development of distributed energy generation results in changing cash flows related to energy bills. Renewable energy projects also contribute to job creation. Under the EU regional policy, it is assumed that renewable energy projects may contribute to improving living conditions in backward regions, regions experiencing industrial decline and degradation of agricultural and coastal areas, and regions with a low population density. EU funding is available to local governments for renewable energy projects. Agricultural land not suitable for growing edible plants because of significant soil contamination may be used to grow plants intended for the production of biofuels. Measures taken by local authorities to ensure energy security by using renewable energy sources contribute to raising the environmental awareness of the local people. Renewable energy sources may have a major share in the total amount of energy consumed by many local districts. They may also contribute to improving energy supplies in areas with a poorly developed energy infrastructure. Areas designated for renewable energy projects do not lose their usable and tourist assets. The projects do not require much space. Almost all of the land occupied by on-shore wind farms, for instance, excluding only the small parts occupied by wind turbines and service roads, may be used for agricultural purposes. :: 3-4 /2012 :: polish market :: 69