DSM Opportunities Within the Future Competitive Polish Electricity System

Panel: Panel 1: Policy and Programmes - Who can deliver DSM?

Authors:
Ewaryst Hille, Polish Foundation for the Energy Efficiency, Poland
Wallace R. Gibson, Northwest Power Planning Council, USA

Abstract

In general, the Polish electricity system is beingÉ restructured based on the UK concept. A dozen independent generating companies will be competing in the pool to provide energy and power to the transmission system, from which independent distribution companies will buy. After the time needed to accommodate the actors to the new system structure and technical development, retail wheeling will be allowed.

During more than 40 years of socialism in Poland, a huge energy efficiency potential has aocumulated. Many of the measures making,up this potential are more economically attractive then supply options. According to the latest version (November 1994) of the proposed national Energy Law, it should be possible for distribution companies to make investments for improvements in consumersÉ energy efficiency. The version opened the way for creation of rates based on recovery of those investment costs.

With special rules for DSM tinancial arrangements and rates, at the beginning stated by the regulator and after some transition time based on the negotiation process, it should be profitable for the distribution companies to provide DSM proposals to the pool to compete with marginal supply options. These profitable projects will not be available in the near future outside of the distribution companies, because of lack of experienced energy service companies (ESCOs), lack of capital and the much higher risk without reimbursement from rates. To launch DSM activity, distribution companies have to learn how to define and realise projects in the market and how to organize finance for them.