5th Energy Forum (2010)

Recent developments have put energy issues at the forefront of public policy discussions in the European Union and in Central Eastern Europe (CEE) in particular. Historically high and volatile prices, climate change-related concerns, sustainable development, rapid technological changes, strategic projects and national security considerations converge – European countries are facing many important strategic decisions that could have long-lasting implications for its economic and political development.

The Energy Forum series (Prague 2006, 2007; Budapest 2008, 2009) are becoming the key venue in the region for exchange of ideas and open debate about the above mentioned issues between political and business leaders, including ministers and heads of state.
The 5th Energy Forum aims at sketching global trends and possible future developments of the EU and CEE as well as at identifying options for political and business decision-makers to influence energy developments through a positive impact of cooperation.


Draft Programme:

November 8   

  • Arrival of participants /registration
  • Report Presentation
  • Evening Reception

November 9

  • Opening session:  energy policy in Europe – business and politics
  • Discussion panels:

•    Renewable energy sources: new technologies, possibilities, strategies.
•    Modernization of the energy sector in Central Europe
•    Renaissance of the nuclear energy – best practices from Europe and beyond
•    USA, Russia and EU – cooperation or competition in the field of energy security?
•    Looking beyond the crisis – intelligent energy investment as a key to a successful EU energy policy
•    Pipeline diplomacy – the role of geopolitical factors in searching for diversification of gas supply

  • The Kosciuszko Institute Report presentation
  • Reception

November 10

  • Opening session: The role of Central Europe in creating the EU energy policy
  • Panel discussions:

•    Facing increasing energy demand in Europe: key threats and opportunities
•    Meeting EU climate package -  how to manage the change in the energy sector?
•    Restructuring the energy sector in CEE – in search for the best solutions?

  • Lunch


Report: Prospects for the Central and Eastern European Electricity Market

KPMG's most recent publication, entitled Prospects for the Central and Eastern European Electricity Market, aims to highlight that the Central and Eastern European (CEE) region needs to up to EUR 144 billion in power sector investment to meet demand over the next decade.

Furthermore the electricity systems of CEE need significant investment in all segments if they are to meet the expected 25 per cent increase in demand across the region during the next decade. The study is based on analysis by KPMG's Energy & Utilities Advisory Practice in CEE region, compiled with the cooperation of industry and financial experts, analyses investment demand, opportunities and the expected developments in national networks and in international connections as well, combined with a special focus on the power sector.

Energy Report Presentation:

"Prospects for the Central and Eastern European Electricity Market"

The first event of V Energy Forum was presentation of a report prepared by KPMG "Prospects for the Central and Eastern European Electricity Market", which was presented by Dariusz Marzec, Director for Energy and Natural Resources, KPMG Poland.

The energy Policy of the European Union is built on three pillars – sustainable development, security of supplies and competitiveness. Dariusz Marzec stressed the strategic impact on the energy sector exerted by the fuel mix (energy production structure), which in our region has remained practically unchanged for three decades -  60 percent is occupied by hard coal and the rest by nuclear and hydroelectric energy. – The production structure of energy determines the situation in the energy market in our region – emphasized Dariusz Marzec.

The authors of the report noticed that Poland is the biggest energy market in the region, but it is also to the maximum extent dominated by energy produced from coal. The document points also at disproportions related to the potential of energy companies in Central and Eastern Europe and Western Europe. – Our companies, as compared with their Western European counterparts, are small and must take the position of a weaker partner in the European market – commented the representative of KPMG.

The report indicates that the critical issue in the region is the necessity of substantial investment in energy in the nearest years – 30 percent of energy assets in Poland are older than 30 years and it is a border line, after which the infrastructure should be changed. Marzec remarked that the regulatory framework is not favourable for investment in the Polish energy. According to the estimates of the report's authors, the region needs nearly 150 billion euros for investment in this sector.

The report includes also an estimate that renewable energy represents 7-8 percent of total energy produced in Poland. – If Poland aspires to reach 15 percent of energy from renewable sources, spending for this type of energy should reach 5 billion zlotys. Marzec stressed that the level of support acceptable by renewable energy sector is an open issue considering competitiveness in the market.

According to the report since December 2010 Polish market will be entirely coordinated with the Swedish market, and since 2012 with Central Europe, while complete coordination with the EU market is expected in 2015. – It is a trend which will continue. Within 2-3 years the markets will be integrated in practice – emphasized the representative of KPMG. The main challenges pointed by the report are implementation of 3×20 energy package, fulfilment of emission standards – reduction of sulphur and nitrogen dioxide, reconstruction of production assets, introduction of a common and open market and also development of cross-border connections.

Mirosław Bieliński, CEO of Energa Poland, referring to the issue of necessary investment estimated that its size is impressive; Central Europe must find nearly 150 billions. In his view, one can approach this issue in two ways: optimistically, expecting huge investment demand and the opportunity to generate high profits and pessimistically – we have a big challenge, we would have to contribute to reconstruction of production capacities – he said. As he emphasized, he is personally closer to the optimistic scenario for development of investment in the sector.

The President of  EDF Poland, Philippe Castanet, said in turn that investment in gas energy is the simplest one in view of the shortest return on investment, which is approximately 5 years. Although, as he pointed, development of gas energy sector in Poland will be connected with the issue of security of supply. – It is very good that investment is present here, but if the gas sector will depend on one source, problems are likely to appear. Evaluating the perspectives of coal energy, he stated that Poland is a good place for EDF in terms of investment.  Drawing attention to the issue of environment protection as regards coal based energy, he reminded technical progress – capacity of power plants is getting higher, the biomass burning technology can be improved. President Castanet informed that EDF is at the stage of deciding about construction of a coal power plant in Rybnik. – Poland is a big carbon dioxide emitter and therefore players will try to reduce its emissions in their entire portfolio. He pointed also to the issue of integrating connections between power grids. – We cannot import energy from Germany because we do not have transmission lines and Germany as one of few countries in Europe that have energy surplus.

 Download here.


Practical information

Over 300 delegates from the UE, the CEE region, Russia, Central Asia and the USA: politicians, experts, businessmen, journalists
Conference venue:
Haffner Center, Address: 19, Powstańców Warszawy St.. , 81-718 Sopot

•    Hotel Haffner *****,  Address: 59 Haffner St. , 81-715 Sopot, www.hotelhaffner.pl
•    Hotel Sheraton*****, Address: 10 Powstancow Warszawy St. , 81-718 Sopot, www.sheraton.pl/sopot 




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