Reduced support for wind has caused some large developers to make bets on solar PV. Smaller, local developers have also begun to build portfolios and hone supplier relationships.

From the Cleantech magazine Spring 2013

Take a drive through southern Poland and you are sure to find rooftops with solar panels.

Most of these harvest the sun’s energy to heat water, which can be used for space heating or to take a hot shower in mountain towns like Zakopane.

There, customers are lured with promises of the National Fund of Environment Protection and Water Management (NFOSiGW) funding to help with the upfront costs. While solar thermal is common in some parts of Poland, soon solar PV could rival its thermal twin.

BIG GUYS
Martifer Renewables, a developer, plans to build a solar PV project pipeline in 2013 by calling on their solar experience in other CEE markets. Martifer was among several developers who have recognized that the profitability of their current pipeline, mostly wind, could be undermined if the new law was passed.

“It’s our intention to start some greenfield development in quarter one of 2013. We are open to all of Poland, but central and south Poland is our focus due to irradiation levels and our geographical proximity,” said Francisco Queirós, country manager for Martifer Solar in Slovakia and Czech Republic. Currently Martifer is performing some preliminary feasibility studies in terms of solar potential, locations and technical conditions.

SMALL FRIES
Large corporates are not the only ones developing solar projects. Smaller, Poland-based developers, like Czysta Energia PV, are assembling a network of suppliers.

Sebastian Machnowski, owner of Czysta Energia PV, started the company in 2011, helped along by EU funding. Mr. Machnowski works with two German companies, Kirchner Solar Group and Sonnen Systeme, reputable developers with a solid project history that he hopes to leverage in the Polish market. Financing, for instance, could be easier to obtain if the project was designed by his German partners.

“We are preparing roof installations for private investors. We’re also focused on projects up to one megawatt, because those types of systems will return the most profitability to investors,” Mr. Machnowski said. This is due to micro- and small installations receiving best feed-in-tariffs or the highest coefficients to calculate the value of green certificates. Although himself dependant on connecting projects to the grid, and receiving a feed in tariff for small installations, once these are secured, Mr. Machnowski will be selling energy security to customers.

Both Mr. Queriós and Mr. Machnowski are aware of the risks. In other CEE markets, subsidies were recalled or reduced after being signed into law.

“Martifer Solar analyzes the risks we expose ourselves to and we all try to hedge against them. This analysis is usually a country risk analysis rather than an analysis of the project itself,” Mr. Queriós said.

Environmental impact assessments may not be needed for solar, but other hurdles could wait. Wind developers, for instance, have to contend with project lead times that can exceed 48 months.