The economic secrets of RES. What does renewable energy do to our wallets?
Renewable energy sources are a relatively new part of our energy reality and as a result, many myths have grown up around them. In this article, we will take a look at the most commonly asked questions and economic concerns about RES. We will explain their causes and show the costs and benefits of renewables in a broader context.
Myths about the cost of energy from RES
One of the biggest myths surrounding renewable energy is the misconceptions surrounding its costs which mostly stem from outdated knowledge. For years, wind or solar energy was indeed much more expensive than coal energy. However, due to the decreasing costs of RES and the increasing costs of fossil fuel-generated energy driven by material shortages or new regulations, the situation has changed.
Currently, the price of renewable energy production ranges from PLN 200 to PLN 500 per megawatt hour, while the cost of coal-fired power can reach up to PLN 700 per megawatt hour.
In addition, the cost of energy for the consumer is lower due to lower distribution costs. As wind farms or photovoltaic installations usually supply power to local households, transmission prices are lower, generating savings for both energy users and producers.
Those who choose to invest in photovoltaic systems in their households can expect significant savings, especially through the various support programmes and tax credits offered by the government to promote clean energy.
Is renewable energy a burden for local communities? On the contrary!
One of the popular misconceptions about renewables and programmes to support their development is that the costs of their implementation will be incurred mostly by local communities, especially those in rural areas. Nothing could be further from the truth!
RES projects, such as wind or solar farms, are indeed being developed mainly in rural areas, but their presence represents an opportunity for the real development of these areas. What are the benefits of these investments?
More money for the municipality
- RES projects, such as wind or solar farms, are indeed being developed mainly in rural areas, but their presence represents an opportunity for the real development of these areas. An example is the Margonin municipality in the Wielkopolskie Voivodeship, where there are 60 wind turbines. The annual tax revenue from the farm is around PLN 6 million.[1] Such funds can be used by municipalities to renovate roads, finance schools and kindergartens, build sports facilities, support senior citizens or develop public transport.
New jobs and growth of local businesses
- The construction and operation of RES installations means additional orders for building contractors and transport and maintenance companies. This, in turn, means more work for local businesses and new jobs for residents of the area. In addition, implementation of such projects increases the attractiveness of the region for future investors.
Agrivoltaics - energy and agriculture in one
- Farmers can also benefit through innovative solutions such as agrivoltaics. This is a combination of solar energy production and agricultural operations that allows the same land to increase income. For example, installing panels over crops can protect them from excessive sunlight while generating energy [2].
Energy cooperatives - energy for communities
- Rural and urban-rural areas have a unique opportunity to create energy cooperatives. These initiatives allow residents to produce and consume renewable energy collectively, saving on transmission charges. Surplus energy can be fed into the grid, giving discounts on the purchase of power during periods of low production. It's a model that benefits both the community and the environment.
RES are never a burden on local communities. On the contrary, they become an engine for their development. With tax credits, new technologies and cooperation models, rural areas can not only become energy independent, but also gain new economic and social opportunities. Renewable energy is not a cost – it is an investment in a better future!
Is RES destroying Polish industry?
- The belief that the transition to green energy will ruin Polish industry, particularly that based on mining, is one of the most frequently repeated concerns related to renewable energy sources. Is this really the case? Let's check the facts.
Mining - an expensive tradition
- Contrary to popular belief, mining is not a sector that supports itself. Poland subsidises its operation by billions of zlotys every year. Meanwhile, RES offer a more sustainable alternative - both economically and environmentally. What’s more, the development of RES creates an opportunity to retrain mine workers as specialists in wind, solar or hydroelectric installations. This is an opportunity for stable jobs in a rapidly growing industry.
Stabilisation of production costs
Renewable energy sources can make Polish industry independent of fossil fuel price fluctuations on the world market. For companies, this means cost predictability, lower financial risks and potential savings, especially if they opt for rail transport powered by clean energy which is not only environmentally friendly, but also a more viable solution from the economic point of view.
RES means new jobs
The development of RES means thousands of new jobs. Regardless of the type of energy – be it wind farms, photovoltaic panels or hydroelectric plants – people are needed to design, manufacture, install and maintain these technologies. It is worth recalling the story of the construction of the Hoover Dam in the 1930s – one of the first large-scale energy projects. This investment not only provided employment for tens of thousands of people, but also boosted local economies through the development of services and commerce.
Poland as an energy export leader
However, many challenges stand in the way of achieving these ambitious goals, such as the need to modernise electricity grids, streamline administrative procedures and ensure the stability of energy supply during periods of low RES generation. It is also worth noting that Poland still imports a significant proportion of energy resources, such as natural gas and oil, and is dependent on external suppliers. Investments in RES can help Poland become independent from unstable raw material markets, create new jobs and build a modern economy based on innovative technologies.
Indirect benefits
In addition to the direct economic benefits of renewable energy, there are also many indirect benefits. Climate change causes extreme climatic events such as floods and droughts. Pollution from conventional energy sources poisons the air we breathe and gives rise to huge social and economic costs. Annual expenditure on the treatment of smog-related diseases in Poland ranges from EUR 12.8 to 30 billion.[6]
Losses in agriculture due to droughts amount to another PLN 1 billion, and floods, such as the one in Lower Silesia in 2024, caused damage estimated at PLN 4 billion. Any action that mitigate such phenomena not only protects human health and the environment, but also brings tangible economic benefits to the country as a whole.
Therefore, RES is actually a long-term investment. An investment in our economy, our health and our security that will make us less dependent on fossil fuel supplies both on an individual and national level.
[1] https://samorzad.infor.pl/sektor/zadania/srodowisko/6606056%2Cfarmy-wiatrowe-dlaczego-sa-oplacalne.html
[2] https://swiatoze.pl/agrofotowoltaika-w-polsce-czy-rolnictwo-i-oze-to-dobre-polaczenie/
[3] https://www.rynekelektryczny.pl/zielona-energia-w-polsce-na-tle-europy-srodkowo-wschodniej/
[4] https://www.senat.gov.pl/gfx/senat/userfiles/_public/k11/komisje/2024-3/kgni/informacje/przyszlosc_energetyki_w_polsce__komisja_senacka_katowice_23.10.2024.pdf
[5] https://www.gov.pl/web/klimat/projekt-krajowego-planu-w-dziedzinie-energii-i-klimatu-do-2030-r–wersja-do-konsultacji-publicznych-z-102024-r
[6] https://www.gov.pl/web/rozwoj-technologia/ogromne-koszty-zdrowotne-i-finansowe-smogu-z-niskiej-emisji-mpit-przedstawilo-raport?
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