Breakthrough in Eastern Europe’s Energy Sector: Renewables Surpass Coal for Electricity Generation

Eastern European Solar Sector Makes History with Renewable Growth

In September, coal provided less than half of the country’s electricity generation for the first time. In October, solar energy accounted for 30% of the generation. Konrad Wojnarowski called this a “breakthrough” for renewable energy.

The national development strategy outlines the country’s goals for social, economic, and spatial development over the next ten to 15 years. Wojnarowski emphasized the need for engaging private investors in the solar sector and managing risks to stimulate growth.

Grid Challenges in Eastern Europe

The rapid growth of solar energy poses challenges for the region’s energy infrastructure. Poland’s transmission operator curtailed 13 GWh of solar generation by May 2023. Bulgaria has 35 GW of new solar and wind capacity waiting for grid connection.

Panelists discussed solutions such as increasing storage capacity and improving awareness of sector priorities. Robin Hirschl from PV-Invest highlighted the need for smarter energy management systems that incorporate batteries and forecasting models to enhance energy balance.

Storage Solutions for Grid Issues

Despite the challenges, there is optimism about integrating storage technologies. Poland currently has 1.46 GW of battery storage and plans to add 9.5 GW through auctions. Battery energy storage systems (BESS) are viewed as an investment opportunity, though their current cost is high.

Magdalena Hilgner from PLAY noted that as battery technology advances, costs will decrease, making them more accessible like electric cars.

Opportunities for Retrofits and EPCs

There is potential for retrofitting existing solar installations with batteries. Miłosz Gliński from Santander said this trend is emerging as it makes economic sense. Josh Murphy from Econergy emphasized preparing for all scenarios in project planning.

Katerina Jirku Nemec from Trinasolar mentioned opportunities for local engineering firms to assist with battery storage integration, a crucial need as the market becomes reliant on imported technology.

Market Maturation and Investment Focus

Discussion revolved around the financial maturity of the Polish market compared to its neighbors. The panel emphasized Poland as complex and competitive, offering varied opportunities.

Investors need to commit to larger-scale projects despite perceived risks. Hirschl urged banks to support the energy transition, even if the return on investment is uncertain.

Managing Investment Risks

Investors express concerns about risks in the solar market. Ewelina Szulc from Klara Renewables pointed out that “risk” often dominates conversations. Ewa Banasiuk from DNB Bank noted the balance between high risk and high potential returns requires investors to rethink acceptable risk levels.

Continuing Interest in Investment

Despite challenges, investors are still interested in financing the solar sector. Anastasia Gurnell from Nord/LB stated that with proper structuring, financing can be achieved.

Wojnarowski urged linking these projects to national and European funding. He underscored the importance of creating a competitive, equitable economy that supports energy transformation.