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Poland’s incoming government submitted a draft law to freeze energy prices in the first half of 2024 and liberalize rules to build wind farms.
The draft law would reduce a minimum distance between a turbine and a residential area to about 300 metres from the current 1,500 metres depending on the level of noise emitted by the installation.
And the draft proposes to restore the obligation to trade electricity on the country’s energy exchange, which was abolished by the outgoing Law and Justice (PiS) government.
The incoming government to be formed by the pro-European parties plans to kick-start the country’s lagging transition from coal to achieve up to 70% of energy production from renewable sources by 2030 from about 15% last year.
Poland has one of Europe’s highest spot power prices as it produces some 70% of electricity from coal
Energy prices including electricity, gas and district heating would be frozen for households and so-called vulnerable consumers including schools and hospitals, the draft law says.
Support would be financed from the COVID-19 Fund, via a mechanism set up in 2022 to mitigate the effects of the energy crisis and funded from contributions by Poland’s top oil and gas firms.
The biggest contributor to the fund is oil and gas company Orlen. Earlier this year, the company said it expected to contribute 14 billion zloty to the fund in 2023.
PiS introduced subsidies for household consumers installing heat pumps and solar panels, but blocked the development of onshore wind for most of its eight years in power. ($1 = 3.9507 zlotys)
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