PL EN

20th Economic Forum Panel Discussion: Energy Security – The Presentation of the Kosciuszko Institute Report

http://ik.org.pl/test/cms/wp-content/uploads/2011/03/1.jpg

The very first event of the 20th Economic Forum in Krynica was the official presentation of the Kosciuszko Institute report on energy security in Poland. The Institute’s experts created an assessment model, making energy security measurable. As a result, the discussion concerning energy security will become more specific because of the existence of objective and measurable criteria, facts and numbers. The report is an innovative idea in the regular monitoring of the energy security situation in Poland. At present, the index includes two sectors of the power industry: petroleum and liquid fuels as well as natural gas. Eventually, it will also comprise power engineering. Using the Ease of Doing Business Index and the Corruption Perceptions Index as its base, the report will serve the purpose of annually evaluating the energy security in Poland.

Poland is relatively safe in terms of petroleum and liquid fuels security. The country is also safe in regards to the possibility of organizing more supplies in case of a crisis. However, the situation looks worse with relation to natural gas.

During the discussion panel the results of the opening report concerning the energy security of Poland were presented. The report was prepared by experts from the Kosciuszko Institute: Mr. Piotr Szlagowski, Mr. Janusz Kowalski, Mr Aleksander Zawisza. The Institute’s guests from the US, the UK and Poland raised a question concerning the applied criteria under discussion. They also stated that a similar methodology can be used when analyzing the energy security in other countries, especially in Central and Eastern Europe. Energy security is one of the objectives of energy policy conducted by individual countries as well as by supranational structures. It is also a condition for a country’s development and prosperity, hence it needs to be constantly and periodically monitored.

Professor Władysław Mielczarski, European Coordinator for the Northern European Powerlink, said that “Political decisions are especially important when it comes to energy security and should be based upon accurate models evaluating the current and postulated condition of energy security. Unfortunately, there were no such models until now. However, initiatives like this one by the Kosciuszko Institute are leading us in the right direction.”

Keith Smith (Centre for Strategic and International Studies) emphasized that the most powerful members of the EU underestimate the issue of energy security in Central and East European countries. He emphasized that the Polish and Hungarian presidencies in the Council of the European Union might be an opportunity to change this situation.

Professor Alan Riley from the Centre for European Policy Studies (CEPS) and City University London underlined the importance of The Third European Energy Liberalization Package. In his opinion, it is necessary to bear in mind that it may be possible to use market mechanisms in order to ensure the energy security of individual EU countries as well as of the EU as a whole.

Both foreign guests emphasized the political aspects of energy security conditioned by Gazprom’s policy. They particularly criticized the attitude of the Polish government during negotiations over the new gas agreement between Poland and Russia. In their opinion, Poland should use European instruments when negotiating instead of opposing the EU. Referring to the gas agreement, Professor Alan Riley stated directly that “a long-term gas contract is the main danger when it comes to the security of natural gas supplies. The alternative should be LNG gas imports. In the long run, Poland should not forget about new import possibilities, for example from the UK, in case closer integration of the transit network within the EU occurs.”

Another problem emphasized by the experts was the situation which occurred in the EU when Poland, as the country which recently brought up the question of energy solidarity and the establishing of a Common Energy Supply Security Policy, needed to defend the gas agreement on its own even if it was against its prior political demands.

 

Main conclusions and results of the report

  1. Poland is relatively safe in terms of petroleum and liquid fuels supply security. The country is also safe regarding the possibility of organizing supplies in case of a crisis. The aggregate indicator of the energy security of the sector comes to 0,7117 for the year 2009. However, the situation looks worse with relation to natural gas. The aggregate indicator for this sector comes to 0,2931 for the year 2009.

 

Petroleum and liquid fuels

  1. The supply of petroleum and liquid fuels exceeds the required minimum. Access to intervention resources would not pose a problem for up to 55 days after the start of a crisis. After that, as a result of the limited ability to absorb petroleum and fuels only 45 % of demand would be fulfilled.
  2. Contrary to the capacity of marine terminals, the capacity of land bases and terminals is sufficient in relation to possible demands in case of a crisis. The possibility of receiving petroleum through Naftoport is however insufficient.
  3. In case of a crisis, the necessity of receiving significantly larger amounts of fuels through marine terminals will emphasize all of the disadvantages of railway transport in comparison to transport by pipeline – time, volume size and price.

 

Natural gas

  1. In the last year the domestic extraction of natural gas came to 4,1 billion m³, which was 31 % of the domestic demand for natural gas.
  2. As much as 91 % of the natural gas that is imported to Poland comes from the East. The establishing of an LNG terminal in Świnoujście might play an important role in the diversification process of the Polish import basket.
  3. The share of short term contracts in the whole contract structure was incidental and insignificant.
  4. The active capacity of underground gas depositories as well as the maximum level of gas absorption are insufficient.

 

The full report is HERE


 

Files
  • WatchFlickr Panel dyskusyjny na XX FE: Bezpieczeństwo Energetyczne Polski
Social Media

Visit Us in: Facebook Youtube Facebook Facebook

Multimedia