Since its entry into the Polish market six years ago, Statkraft has established itself as a major player in the country. The company has worked hard to develop a portfolio of solar and wind energy projects, with the ambitious goal of reaching 1 GW of installed capacity by 2030.

Michal Smyk, gerente de país de Statkraft en Polonia

However, this path has not been without challenges, as the industry faces regulatory and infrastructural barriers that hinder the implementation of new initiatives.

In an interview with Energía Estratégica España, Michal Smyk, Country Manager of Statkraft in Poland, shares his perspective on the company’s progress in the renewable energy sector and the challenges that persist.

In a context where 73% of energy in Poland comes from fossil fuels, Smyk focuses on the strategies needed to diversify the country’s energy mix and the crucial role that green hydrogen will play in the transition to a more eco-friendly economy.

How do you evaluate Statkraft’s entry into Poland from 2022 to the present?

In the past two years, we have been building Statkraft’s portfolio in Poland in the field of renewable energy, mainly through greenfield projects and co-development. These are time-consuming processes, as they require a good understanding of the market, its mechanisms and applicable regulations, as well as establishing relationships at the local level.

Currently, we have an experienced team and the first projects are in the early stages. Our portfolio includes investments in solar and onshore wind energy, along with energy storage in the early stages of development, with a total capacity of over 1 GW for 2030. A significant portion of these projects is already in the formal development process.

What are the main challenges encountered in achieving this?

The first challenge is that the Polish market is already quite mature, and there is considerable competition in the renewable energy (RES) segment.

In recent years, a large group of companies was created solely for the purpose of acquiring land for installations and securing grid connections, without having installations or funds for investment. This negatively affected the perception of the sector as a whole. Today, we must face these stereotypes and rebuild trust among local communities.

The second challenge is the current regulations in Poland. Legal provisions for renewable projects are subject to frequent changes, especially with regard to the development of onshore wind farms. New provisions are being created, such as those related to sharing connections or redistributing energy. Many of these solutions are expected to accelerate the development of renewable energy in Poland, but there are still many limitations when it comes to putting them into practice.

Finally, the outdated process for securing grid connections and grid congestion appear to be the main barrier to the rapid development of renewable energy in Poland.

Considering that 73% of energy in Poland comes from fossil fuels, what measures should the country implement to diversify its energy mix?

It is important to highlight that, for years, Poland’s energy system has relied on fossil fuels such as coal and natural gas. The latest draft update of the National Energy and Climate Plan assumes a 50.4% reduction in emissions compared to 1990, over 32% share of renewable energy in gross energy consumption, and 96 GW installed in electricity by 2030. The pressure to develop renewable energy in the country is evident.

However, after a period of inactivity due to unfavorable legal conditions, the development of wind energy is accelerating again. More and more companies are also investing in energy storage.

The intentions are good, but there is a barrier limiting the dynamics of renewable energy development in Poland, and without action, this could also come to a halt. We are talking about the outdated process for obtaining grid connections and an aging grid infrastructure that requires significant investment.

Porcentaje de generación de electricidad en Polonia por fuente, por Ember Electricity Data Explorer, ember-climate.org

What are your expectations for the progress of energy storage projects in Poland?

Energy storage is still an emerging market in the Polish region. The current size of the country’s renewable energy segment and the overproduction of energy observed in recent months require the implementation of market mechanisms that work well.

Is regulation needed to incentivize the development of these projects?

The parameters of the main capacity auction have recently changed. The corrective capacity availability factor has been reduced, which could worsen the profitability of investments in this technology.

The domestic market is showing somewhat contradictory signals. This needs to change if Poland wants to encourage investors to allocate their capital to energy storage installations.

So, how could storage projects take off in Poland by 2025?

In addition to the aforementioned regulations, the high quality of the planned investment portfolio is very important. At Statkraft, we take a strict approach both to project profitability and environmental requirements.

Meanwhile, many projects have been developed with little attention to detail, just to secure grid connections as quickly as possible. Ensuring the economic predictability of the projects will be key.

Finally, what potential does Poland have as a green hydrogen producer in Europe?

Hydrogen and biomethane are identified as alternative fuels needed to complement the national energy mix, especially in the context of industrial decarbonization.

Poland has a “Hydrogen Strategy for 2030 with a Perspective until 2040” in place since 2021, which foresees, among other things, the installation of approximately 2 GW of low-carbon hydrogen generation capacity by 2030 and the creation of an innovation ecosystem in hydrogen valleys.

Poland already holds a leadership position in the hydrogen segment: it is the third-largest producer globally and the first in terms of hydrogen consumption. However, the hydrogen in question is not green but gray. Replacing it with green H2 will be a challenge, but the starting point is good as the market can rely on existing infrastructure.

The issue remains capital, technology, and regulation. Due to the way it is produced, green hydrogen requires the liberalization of the renewable energy market. As with storage, financial support in the form of subsidies is also very much needed for investors to cope with these high costs and achieve a return on investment.