Renewable Energy Investments is a proposal from Colliers for investors looking to diversify their property portfolio by expanding into renewable energy projects. The service includes comprehensive transactional advice, investment support for photovoltaic and wind farms and energy storage.
"The creation of the Renewable Energy Investment service was a natural extension of Colliers' investment consultancy in response to market needs. By offering investors the option to purchase projects fully prepared for the construction of Renewable Energy Source (RES) farms, we aim to enable them to diversify their portfolio and invest in energy sources that will form the basis of the future energy sector due to numerous EU regulations", explains Piotr Mirowski, Senior Partner, Investment Services at Colliers. "The potential for the development of the RES market in Poland is enormous, as investors themselves recognise. We are already seeing growing interest from funds and we forecast further growth in the coming years", adds Piotr Mirowski.
Much catching up to do
In contrast to Western European markets, Poland's saturation with RES projects is still low due to delays in the energy transition process. In 2005, the share of renewable energy in energy production in Poland was only 2.5%. In 2023 this will already be 26.5%, but we still pale in comparison to Germany as well as the EU average, where RES accounted for 59.7% and 44% of total energy production respectively. Poland also has a lot of catching up to do in terms of the ambitious objectives of the EU, which are reflected in the regulations that are adopted. An example of this is the directive adopted by the EU Council in Q4 this year on increasing RES in energy consumption to 42.5% by 2030, with a target of 45% (the previous target for member states was 32%).
"This shows what a huge niche we have to develop in Poland. Our entry into renewable energy sources is already giving investors a chance to build a strong position in our energy market, and we want to support them in this process", says Dariusz Chrzanowski, Director of the Energy Advisory, Colliers, adding: "Importantly, our advisory services can cover every stage of investment - the acquisition of a ready-to-build project (including connection conditions), project management of the construction process, management of installations at the maintenance stage, as well as the sale of energy. This ensures that the owner of such a farm receives comprehensive support from a single company. At the moment, we have a resource of 100 megawatt-hours, which means we can build wind and photovoltaic farms generating almost 200,000 megawatt-hours. This is equivalent to the power to supply 100,000 households, assuming that a household on average consumes 2 MWh/year.
Photovoltaics leads Polish RES
Photovoltaics are currently at the centre of Poland's green transition, accounting for 16.9 GW of installed capacity, while the total capacity of renewable energy sources in the country is 28.8 GW. A key moment for the development of this sector was 2022, when, as a result of favourable legal regulations and the resulting investments, the power generated by photovoltaic panels in Poland doubled. Wind farms account for just under 9.3 GW so far.
Innovative projects on the horizon
An important milestone for the Polish RES market, which may encourage investors to enter the sector, is the ongoing expansion of energy storage facilities, with capacity reaching 9 GW by the end of 2023.
"The dynamic development of electricity sources based on RES installations is increasingly challenging the existing transmission infrastructure, and energy storage facilities are an essential element in the modernisation of the entire energy system. At Colliers, we are currently seeking a partner to develop one of the largest 400 MW electricity storage projects in Europe. Located in the north of the country, it is a key element of the grid upgrade for emerging offshore wind farms", says Tomasz Czerniak, Senior Associate, Investment Services, Colliers.
Poland is also betting on innovation, as seen by the concession of the first hybrid project combining wind power with solar energy. The 'Gaj Oławski 5 AHE' installation will be built as part of the Oława Energy Cluster in Lower Silesia. Also important for the further development of RES are the plans for the expansion of offshore wind farms, which by 2027 are expected to provide Poland with a further 8 GW of power.
"Although the road to full energy transition is still long, the Polish RES market has developed over recent years, offering new investment opportunities. The 'Renewable Energy Investments' service from Colliers is part of this trend and is a response to growing market demand. In light of further plans to expand Poland's RES infrastructure, Colliers enables investors to combine the achievement of ambitious environmental goals with the opportunity to profit from them", emphasises Dariusz Chrzanowski.
