THE IMPACT OF GREEN CERTIFICATES ON PROFITABILITY OF POLISH WIND FARMS
In order to enable constant development of wind farms, as well as an increasing share of renewable energy sources in total energy production, certain auxiliary steps have to be taken. Investing in wind farms absorbs great outlays. Therefore, the President of Energy Regulatory Office issues so called...
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| Format: | Article |
| Language: | English |
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Publishing House of Rzeszow University of Technology
2015-02-01
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| Series: | Modern Management Review |
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| Online Access: | http://doi.prz.edu.pl/pl/pdf/zim/153 |
| Summary: | In order to enable constant development of wind farms, as well as an increasing share of
renewable energy sources in total energy production, certain auxiliary steps have to be taken.
Investing in wind farms absorbs great outlays. Therefore, the President of Energy Regulatory
Office issues so called “green certificates.” These certificates can be disposed on the
Polish Power Exchange, which may become the additional income for energy companies.
Nonetheless, the arising and developing field of energy from renewable sources paradoxically
leads to a decrease in price of green certificates. The article analyses the way how a
decrease in price of green certificates influences the company’s performance, as well as
tackles the issue of implementing the new project concerning renewable sources of energy
and the matter of support in the shape of certificates. It is perceptible that, when the income
from green certificates is decreasing, the cost of depreciation of this object as well as the interests
and loans to be paid are too high to acquit of the liabilities. However, it is significant
to draw attention to the fact that wind farms are still profitable. The indicated decline in the
volume of support for wind farms causes that many foreign investors started to withdraw
from engaging in Polish wind farms. However, in the occurred circumstances the project of
a new bill concerning the system of support in shape of green certificates is becoming crucial. |
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| ISSN: | 2300-6366 2353-0758 |