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Polish generator PKE unhappy with new CO2 limits Warsaw (Platts)--14Feb2008 Poland's second largest electricity producer, Poludniowy Koncern Energetyczyny (PKE) said Thursday it was not satisfied with the increased CO2 allowances power generators were awarded in the country's revised National Allocation Plan. The environment ministry awarded generators a 12% increase on average in its revised National Allocation Plan for CO2 emissions 2008-12 on February 12. "The new CO2 limits proposal gives PKE's plants the right to emit around 17.6 million tonnes/year. In the previous accounting period we had more than 21 million tonnes, which allowed us to produce more than 21 TWh of electrical energy in 2007 without the need to buy emission permits," PKE spokesman Pawel Gniadek told Platts. In its original draft plan released December 27 last year, the environment ministry awarded generators a total of 94.4 million tonnes/year, which it revised February 12 to 105.8 million tonnes/year following ministerial consultations and strong lobbying from generators. Industry officials estimate Polish generators emit more than 120 million tonnes/year of CO2. PKE, part of the state-owned Tauron group based in Katowice in southern Poland, said the increases still left the company 3.5 million tonnes/year short. LOWRER GENERATION OUTPUT OR HIGHER COSTS "There can be two consequences from reducing the limits: either we reduce production or we buy additional permits. Of course, in this second case it will involve a growth in production costs. Because the costs of buying permits fluctuates, it's difficult to talk now about concrete figures. If we want to maintain production at last year's level we will have to buy emission allowances for more than 4 million tonnes of CO2. We estimate that at current prices, which in the opinion of some experts could grow further, our clients will have to pay more than 20 groszy (Zloty 0.2) more for each kWh of electricity. It's worth adding that generators will gain nothing from this rise. We will not receive one zloty more for essential investments," Gniadek said. For similar news, request a free trial to Energy in East Europe at