Boston, MA 09/12/2014 (wallstreetpr) – As the developers seek motivation for accelerating their projects because of alterations in clean-energy subsidies, General Electric Company (NYSE:GE) too, plans to invest in wind farms located in Poland. This will be a separate activity of investment than providing turbines.
Rise of Wind Power: Motivation for GE
The General Electric Company (NYSE:GE)’s CEO for Baltic States and Poland, Beata Stelmach said that over the past few months, the company was keenly looking at the increase of wind power in Polish energy mix. Beata Stelmach also highlighted that being a technology source; General Electric Company (NYSE:GE) cannot exclude itself from direct financial assistance in wind projects there.
Polish Draft Law for Green Environment
Poland’s major source of power, at present is coal, from which it extracts 90%. As per its new draft law, the country intends to replace this source of power with completely green source through fixed-price contracts via auctions. These contracts will in turn, replace the green certificate program that will eventually help in reducing the renewable energy price and pushing developers for securing present subsidiaries.
Qualification and Eligibility for Securing Old Subsidies
In order to still remain eligible for older subsidies, the developers will have to secure their agreements so that they can create a bridge between infrastructure and grid and that too, before the beginning of 2016. The old subsidies cost the consumers as well as the Government approximately $1.2 billion annually.
So far, a lot of overseas investors have found interest in Poland and these include Enlight Renewable Energy Ltd. of Israel, Geco Energy of Lithuania, CEE-Equity Partners fund of China and EnerCap Capital Partners of Czech.
As of now, the Polish Government has not disclosed about any changes regarding the cut-off date. The reason for this is a lot of interest riding from the energy sector. The Deputy Economy Minister of Poland, Jerzy Pietrewicz said that legislators shall hold public hearing for this purpose.
GW has already delivered turbines of 370 megawatts power to the wind farms in Poland and the company is now eyeing increase in the pace of projects as a lucrative prospect of its infrastructure revamp. Earlier in March 2014, the General Electric Company (NYSE:GE) Energy Financial Services had announced about its plans of investing in renewable energy projects of Europe.
