Poland's wind power lobby said a draft bill on renewable generation which would set an effective limit on prices would hinder development of renewables and violate European and local law.

Central and Eastern Europe's largest economy which generates 90% of its electricity from coal, is required by the European Union to reduce carbon emissions and to generate at least 15% of its power from renewables. In July, Poland's economy ministry proposed a draft bill that reduced overall state support for renewable energy, favoring solar power and offshore wind over biomass and onshore wind.

The Polish Association of Wind Energy said that the new legislation would radically change the rules of the game for green energy producers by depriving them of green certificates which they can later sell to polluters, if they sell power at a price above the level set by the state.

PSEW said that this regulation drastically changes the functioning of existing installations and will have a huge influence over the whole green energy market in the future. Unfortunately the influence will be negative.

PSEW, citing opinions from three law firms said that the new law would breach EU directives and local regulations including Poland's constitution. Poland's renewable energy drive has so far focused on onshore wind farms and the use of biomass, which essentially involves mixing wood and other plant material with the coal before it is burnt in coal fired power stations.

Earlier in August, Poland's top utility PGE also criticized the draft bill on renewables, saying it reduced the profitability of co burning biomass and did not provide sufficient support for onshore wind power. Poland increased its wind power capacity to 1.6 GW at the end of 2011 from 1.2 GW at the end of the previous year, according to data from the European Wind Energy Association.

Source - Reuters

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