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The core area covered by TAURON Group’s operations is the Polish market. The macroeconomic context, in individual sectors of the economy and the financial markets alike, has a major influence on the Group’s results.

The condition of the Polish economy is, to a large extent, correlated with the situation in the European Union and on global markets. Ongoing analysis of the changes to the macroenvironment makes it possible to identify opportunities and threats. The main areas of the macroenvironment affecting the Group and shaping its development are as follows:

Natural environment

Oil

2016 saw many changes on the oil market. During the year, this commodity’s significant surplus drove the selloff and price declines to 2000-2003 levels. This was the effect of the policy pursued by oil producers to defend their market share leading to a price war. The shale revolution in the US also affected the market situation – over a 5 year period, this country’s oil production shot up 65%. Additionally, by lifting international sanctions, the market saw significant quantities of oil from Iran, which successively increased its export volume in 2016.

In February 2016, Brent oil cost only 27 USD/bbl. Such a low price of this commodity halted a number of investments in new extraction infrastructure; banks financing these projects also had problems. Concerns emerged that this situation would lead to very high oil prices in the future. In Q2 and Q3, prices started to recover, among others thanks to the better than expected condition of the Chinese economy and higher global demand for oil associated with the high holiday season. Higher oil prices were also driven by extraordinary circumstances, e.g. the enormous fire in Canada in the vicinity of the biggest oil fields, warlike activities and destruction of the oil infrastructure in the Middle East and Nigeria.

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Natural gas

2016 was a year of historically low prices in the gas market. In the very first month of the year the average price on the spot market was nearly 30 PLN/MWh lower than the year before, descending to 72.54 PLN/MWh. The culmination of the downward trend was seen in March, when the average next day delivery market price on TGE was a mere 60.11 PLN/MWh. After a slight upturn in Q2, the gas price in Q3 turned out to be very low, in particular in its last two months. In September 2016, it stood at 49.61 PLN/MWh. Throughout the summer, next day delivery contract prices remained in the range of 60 PLN/MWh, compared to 85-90 PLN/MWh in the year before. At the start of the gas winter season, a significant increase in prices took place. In December spot prices averaged 84.95 PLN/MWh.

On the forward market, following low Q1 prices, prices started to go up just like on the spot market. History repeated itself in H2 2016, when following declines in Q3, the end of the year was marked by strong price growth. Ultimately, the reference annual contract gained slightly over 15 PLN/MWh in 2016.

As for development and liquidity on Poland’s TGE market in 2016, one should primarily note the doubling of the trading volume on the next day delivery market. Most of the 16 TWh was traded in the winter season, i.e. when gas demand is at its highest. In 2015, it was a mere 8.7 TWh, while the year before it was half of that. Such a rapid increase in trading volumes on the spot market was not reflected by the forward market, where the volume dropped by over 3% compared to the year before. In terms of quantity, trading on forward contracts was still significantly higher than trading on the spot market. In 2016, it was nearly 90 TWh, i.e. nearly 5 times more than the volume of next day delivery contracts.

2016 was unique, not only in terms of historically low prices. In mid-2016 the LNG terminal in Świnoujście greeted the first ships with commercial deliveries of gas. Thanks to the launch of this regasification port Poland has gained access to the international market enabling it to buy gas practically from anywhere in the world, thus strengthening its negotiation position vs. traditional suppliers.

In addition, the November amendment of the energy law approved gradual waiver of the obligation to set tariffs for gas prices by trading companies and submit them for approval. These actions entailed the necessity of implementing the judgment of the European Court of Justice of September 2015, stating that the Polish natural gas price regulation system is incompliant with the requirements of community law. Another key change in the market involved lifting the privileges for small-scale sellers, releasing them from the obligation to keep natural gas stocks. From amendment’s effective date, each seller importing gas, regardless of volume, is obligated to secure sales by maintaining a specific volume in storage units.

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Hard coal

In Q1 2016, the coal prices in global markets dipped to their lowest level in over a decade. In February 2016, coal in ARA ports cost a mere 36 USD/Mg. The price decline was driven by the economic crisis in China and the shale revolution in the US (cheap shale gas squeezed out coal). Both China and Europe are focused on altering their energy mix towards increasing energy generation from renewable sources.

Starting from Q2 2016, the situation in the global coal market started to improve due to supply side disruptions. As a result of low prices, there were several spectacular bankruptcies of coal giants, e.g. Peabody Energy domiciled in the US and one of the biggest producers of this commodity in the world and Czech OKD a.s. The Polish mining industry also experienced serious financial problems. In Columbia, the world’s fifth largest coal producer, mining industry employees went on strike and in Australia most mines were disabled by floods. China introduced regulations limiting home production (decommissioning of unprofitable mines and then decreasing the number of mine working days).

In Europe, starting in October, as a result of putting aside significant nuclear energy generation capacities in France, the demand for coal increased, thereby strengthening the demand side. Coal prices in the spot market with delivery in winter months rose to over 85 USD/Mg. The contract price for delivery in 2017 closed at 70 USD/bbl, i.e. nearly 100% more than in February 2016.

Improving conditions on the global coal market will certainly have a positive impact on the Polish mining sector. However, this commodity’s price increase will not materialize on the domestic market until 2017.

In 2016, the Polish steam coal price index PSCMI 1 was in the range of 188-201 PLN/Mg (8.52-8.93 PLN/GJ).

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Economic environment

Business conditions in Poland in 2016

The local economy was to a large extent driven by household consumption, supported by the situation in the labor market and price stability. The unemployment rate at the end of 2016 was 8.3%, compared to 9.8% at the end of 2015, and the average salary in the national economy exceeded PLN 4,000 (compared to PLN 3,900 in 2015). In 2016, the inflation rate was -0.6% (in 2015 deflation was -0.9%).

GDP growth in 2016 was lower than in 2015, which resulted from the significant decrease in investments.

Over 2016, the average exchange rates increased – the EUR/PLN exchange rate was on average PLN 4.40 (compared to 4.26 in 2015), and the USD/PLN rate – PLN 4.20 (vs. PLN 3.90 in 2015).

Gross Domestic Product

Historically, there is a strong correlation between economic growth and higher electricity demand. However, in the past few years the correlation has been weakening in connection with the decreasing energy consumption by the economy. Over the past 10 years Poland’s real GDP increased around five times more than the domestic demand for electricity. Because the TAURON Group is Poland’s second generator, leading distributor and major seller of electricity, changes in electricity demand have a significant impact on the Group’s results. Poland’s estimated GDP growth in 2016 is 2.8% (compared to 3.9% in 2015), and in the next years it is likely to remain in the range of 2.5-3.5%. 2016 saw an increase in gross electricity consumption by 2% vs. the previous year.

Purchasing power in Poland

Purchasing power is defined as annual income per capita after taxes, social security contributions, including all benefits received from the state. According to research, Poland’s purchasing power per capita in 2016 was EUR 6,366 (PLN 27,397). This result puts Poland in 29th position in Europe. Warsaw has the highest purchasing power. Its inhabitants have EUR 11,651 (PLN 50,142) at their disposal on average, 83% more than the national average. However, even the purchasing power of the Warsaw population is 15% lower than the European average.

Demographic environment, including, inter alia, changes in population, customer preferences and lifestyles

The Central Statistical Office (GUS) in its study entitled “Population forecasts for 2014-2050” shows that by 2050 Poland’s population will diminish to 33.950 million (today it is nearly 38.5 million). Other important forecasts pertain to the aging society. This study shows that old-age pensioners will account for nearly 40% of the population. The median age will climb to 50.2 from today’s 38.6. This means that in 2050 people aged over 50 will account for more than half of the society.

As a result, the size of the working population will shrink from over 70% today to slightly more than 55%. The old-age index, i.e. the proportion of people aged 65+ to people aged 0-14 will significantly increase. Currently, it stands at 983, i.e. out of 1000 people aged 0-14 there are 983 people aged 65+. In 2050, there will be some 2,693 senior citizens per 1000 young people. These changes will also shape the offerings and products of utility groups. At the same time, customer awareness is on the rise from year to year (illustrated particularly well by the extent of use of the TPA principle). Customer requirements regarding the quality and reliability of supply are rising. Aligning service to customer diversity, coping with demographic trends (aging society) and universal digitization are serious challenges for the traditional power sector. The role of modern and comprehensive customer service is becoming significantly more important. Intuitive and easy electronic customer service will have increasing significance for achieving competitive advantage and customer loyalty. The importance of tailoring products to customer needs is also growing. Consumers expect quick and convenient access to products and services.

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Technological environment, including, inter alia, directions of development and availability of technologies, digitization

Coal-fired power plants

Currently, the conventional power industry in Poland is based on lignite and hard coal-fired power plants. In most cases these are decapitalized units with relatively low efficiency, which nonetheless satisfy prevailing environmental norms. The efficiency of new conventional generation units is up to 46% with a capacity of approx. 1000 MW. Despite the rigorous parameters, even these units must have extensive flue-gas treatment systems and additional environmental protection installations (compliance with the BAT standard). Over the next 10 years there will be no revolutionary changes in conventional generation technologies. The efficiency of new conventional units might reach 50% with appropriately high reheated steam and pressure parameters (supercritical parameters). Developing technologies in this direction will depend, among others, on the further development of material engineering.

Gas-fired power plants

Due to fuel availability and prices, the gas power sector has not played a significant role in Poland so far. Currently, gas is used to produce approx. 4% of the electricity consumed in Poland; however, further units are being constructed, for example in Włocławek, Płock and Stalowa Wola. High-efficiency CCGT units may have an efficiency of 60%. In turn, having regard for the fuel used, it is not necessary to use additional environmental protection installations. The viability of the advantages inherent in the flexibility of gas-fired / CCGT units and their relatively low capital expenditures is subject to gas prices.

Wind and photovoltaic power plants

Due to its geographic location, Poland does not have the most favorable conditions for the development of the wind and solar energy industry. Nonetheless, in past years, wind power plants with a total capacity of 5700 MW and photovoltaic power plants with a total capacity of 190 MW have been built. The development of energy generation using these sources in the next few years will be closely correlated with the support system. Currently available commercial installations have capacities ranging from 0.5 to 3 MW for onshore wind turbines, while for offshore turbines, capacities range from 6 to 8 MW.

Biogas plants

Biogas technologies are based on producing methane from waste, sewage and agricultural raw materials. In Poland they are not very popular – at the end of 2016 the total capacity of such installations was 234 MW. The available capacities of these installations range tens of kW to over 2 MW. Biogas plants are expected to develop in the direction of optimizing the use of substrates, high-efficiency cogeneration and production of fertilizers.

Waste incineration

Incineration is one of the possible ways of utilizing municipal waste. In recent years, waste incinerators have been built in the biggest Polish cities and in several more locations investment processes are under way. For 200 thousand tons of waste per annum (a large city) the electric power of incineration plants is approx. 8 MW, and the thermal power is approx. 35 MW. Further development of the technology is expected in the direction of automation and precision of waste segregation (laser segregation) to select waste fit for reuse (recycling). EU targets for 2030 point to the necessity to recycle 70% of waste and 80% of packaging waste. This may slow down the development of incineration plants due to the limited supply of fuel.

Smart grids

Currently, the idea of combining energy market players is being pursued through the development of automation and smart grids. Smart technologies are available to grid operators, industrial plants and households. Even today, household appliance producers offer smart solutions enabling, for example, communication between household appliances. We believe that global solutions will be developed and commercially launched to manage energy demand, costs and generation. Smart cities will also be developed.

Storage of energy

To maximize production from unstable sources of energy, effective energy storage systems are required. This is one of the main directions of research and development in companies in the power sector across the globe. Well known, available energy storage technologies include, among others, mechanical (pumped storage power plants, compressed air, fly-wheel), electro-chemical, chemical, electric and thermal solutions. Unfortunately, despite the high diversity in the forms of energy storage, low efficiency hinders the extensive commercialization of these solutions. Many companies are currently focusing on research and development into the most prospective technologies.

White certificates white certificates "White" certificates "white" certificates Certificates confirming the saving of a specific quantum of energy as a result of completing investments to enhance energy efficiency.
Biomass biomass Denotes a biodegradable fraction of products, waste and residue from agricultural and forestry production and related branches of industry, including fishing and aquaculture, and biogas and a biodegradable fraction of industrial and communal waste.
Sub peak power generation units sub peak power generation units Power generation units used during a period when the power system has a higher demand for capacity. Power generation units in this class are used from 2000 to 4000 hours a year.
Peak power generation units peak power generation units Power generation units used only during a period when the power system has the highest demand for capacity. Power generation units in this class are used fewer than 2000 hours a year.
Blue certificates blue certificates "Blue" certificates "blue" certificates Certificates confirming the generation of energy from agricultural biomass.
CAPEX Capital expenditures.
Red certificates red certificates "Red" certificates "red" certificates Certificates confirming the generation of energy in highly-efficient coal co-generation.
Net debt net debt Liabilities for loans and borrowings less cash and cash equivalents.
Dividend dividend Portion of a company’s net earnings per share designated for payment to shareholders.
EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization.
Electromobility electromobility Using electric vehicles, both individual vehicles such as an electric car, electric scooter, electric motorcycle and electric bicycle and public transport means: trams, trolleybuses and trains. The assumptions for the Electromobility Development Plan and the domestic framework for the policy of alternative fuel infrastructure development call for there being one million electric vehicles on Polish roads by 2025. TAURON is conducting research and analyses on developing, promoting and disseminating electromobility among Polish nationals, developing the electromobility industry in Poland and in particular collaborating in launching and implementing the findings of scientific and technical work in this area. Moreover, jointly with PGE, Energa and Enea, TAURON has submitted an application to the Office of Competition and Consumer Protection to receive a permit to establish a company called ElectroMobilityPoland to create grounds for developing electromobility.
EMAS EMAS Eco Management and Audit Scheme, an EU instrument to encourage all types of organizations to improve their environmental protection constantly. Functions on the basis of Regulation (EU) no. 1221/2009 of the European Parliament and of the Council of 25 November 2009 on the voluntary participation by organizations in a Community eco-management and audit scheme (EMAS). The EMAS requirements constitute guidelines for organizations to structure their environmental protection duties, optimize costs and effectively manage energy and resources. EMAS is also a system for reporting an organization’s environmental impact making it easier to conduct dialogue in this area with stakeholders. Registration in the EMAS system means that an organization has satisfied the most rigorous environmental requirements.
Prosumer energy prosumer energy Generation of electricity, chiefly for one’s own needs and on a small-scale in installations harnessing renewable energy sources. Households and businesses that do this are called prosumers, meaning that they simultaneously play the role of energy producer and consumer.
Energy from distributed sources energy from distributed sources energii ze źródeł rozproszonych energetyka rozproszona rozproszone wytwarzanie generacja rozproszona energetyki rozproszonej generacji rozproszonej distributed energy Generation of energy by small generation units or facilities connected directly to distribution grids or located in the user’s electrical energy grid that usually generate electricity from renewable energy sources or non-conventional sources, frequently in cogeneration with the generation of thermal energy (distributed cogeneration). The following parties, for instance, may be part of a distributed generation grid: prosumers, energy cooperatives and municipal power plants.
Purple certificates purple certificates "Purple" certificates "purple" certificates Certificates confirming the generation of energy from methane captured in mines.
grid parity Grid parity Signifies the equivalence of the production costs of renewable energy with the energy generated in conventional power plants.
TGE’s FCM Indices Towarowa Giełda Energii (TGE) is the power exchange running the following markets: electricity (Forward Commodity Market - FCM), Day-Ahead Market - DAM, Intraday Market - IDM) and gas (FCMg, DAMg) and the Property Right Market.
smart metering Smart metering Comprehensive and integrated information system encompassing electrical energy smart meters for users of energy, telecommunication infrastructure, central database and management system. Smart metering systems support two-way communication in real time between information systems and electronic electricity meters installed in customers’ locations. Moreover, they may automate the entire billing process for energy users - from obtaining metering data to processing and aggregating them to issuing invoices.
Stakeholder stakeholder stakeholders Natural or legal entity (individual, community, institution, organization, office etc.) which may affect the company or remain under the influence of its actions.
IoT Internet of Things – concept according to which clearly identified objects may directly or indirectly collect, process or exchange data via computer network.
Emergency Cold Reserve IRZ Mechanism introduced by the transmission system operator in 2016. It involves the TSO paying the owners of generation sources which are planned to be withdrawn for keeping them ready to run in response to the operator’s instruction during the anticipated periods of capacity shortage.
ISO 14001 PN-EN ISO 14001:2005 standard PN-EN 14001 standard One of the ISO standards used in managing environmental protection. This standard designated for all organizations regardless of their type and size defines the requirements whose satisfaction supports the achievement of environmental (for instance preventing the emission of pollutants) and economic objectives.
Covenant covenant Contractual clause, order or ban imposed on a borrower to minimize the risk of its invsolvency. Covenents most frequently constitute protection for sources of debt payment to creditors, e.g. by banning further borrowing or disposing of assets.
Aggregate aggregate Bulk organic or mineral material used mainly to produce construction mortar and concrete and build roads.
HV and MV Lines linii WN i SN sieci WN i SN HV - high voltage grid in which the voltage ranges from 110 kV. This grid is used to transmit electrical energy over large distances. MV - medium voltage grid, i.e. an electrical energy grid in which the electrical voltage ranges from 1 kV to 110 kV. Medium voltage is broadly used in electrical energy grids to transmit electrical energy over medium distances and switch energy. It is used as an intermediate voltage between high voltage and low voltage connected to end-users.
Customer loyalization customer loyalization Strategy to acquire and retain customers in this time of growing competition.
Micro-grid micro-grid Electrical energy micro-grid – set of generation equipment, electrical energy storage and receiver units connected in a joint network to ensure the reliable supply of electrical energy and minimize its cost.
Micro-cogeneration micro-cogeneration Technological process involving the cogeneration of thermal and electrical energy based on the utilization of small-scale equipment and medium capacities. Micro-cogeneration may be employed in all facilities in which there is a concurrent need for electrical and thermal energy. The greatest benefits from employing micro-generation are obtained in facilities in which the demand for these two types of energy does not oscillate much or is constant. That is why individual users, hospitals and educational centers, sports centers, hotels and public utilities are usually the most frequent users of cogeneration systems.
MSCI Emerging Markets Europe 10/40 Index Index comprising key companies listed on emerging markets in Europe.
MSCI Poland Index Index comprising more than 20 key companies listed on the Warsaw Stock Exchange.
Best Available Technology BAT The most efficient and sophisticated level of technology development and methods for conducting a given business. BAT are defined for various branches of industry. In the energy sector BAT forms the basis for determining borderline emission quantities, among others, to eliminate, or if that is not practicable, limit emissions and their overall environmental impact.
Sensitive user sensitive user According to the Act entitled Energy Law, a sensitive user is a person to whom a housing allowance has been awarded and who is a party to a comprehensive agreement or electricity sale agreement and who lives in the place where electrical energy is supplied.
Impairment losses impairment losses Losses because of the impairment of non-current assets taken in accordance with the regulations of international accounting IFRS (MSSF) standard.
Corporate Social Responsibility CSR Corporate Social Responsibility – business philosophy and management strategy calling for an organization to take responsibility for the impact exerted by its decisions and actions on society and the environment. Its foundations are rooted in ethical and transparent conduct, taking into consideration the expectations of stakeholders and cultivating good long-term relations with the overall environment. Corporate social responsibility is one of the key methods of achieving sustainable socio-economic development.
PV cells Photovoltaic cell (PV) – semi-conductor material in which the energy of solar radiation is converted into electrical energy.
omni-channel Omni-channel According to the omni-channel idea, the future of commerce is to conduct online sales while simultaneously encouraging customers to make traditional purchases. Online and offline sales during the digital revolution should fluidly penetrate one another.
Operating Capacity Reserve ORM Mechanism of providing operational reserves by the Centrally Discharged Units (JWCD), where they were able to deliver electricity to the system, but for market reasons were not used. It was implemented in Poland in 2014.
RES Renewable energy sources.
PM-RES Property rights to certificates of energy for electrical energy generated in RES.
Polygeneration polygeneration Parallel generation of energy and chemicals.
RESPECT Index Index consisting of companies listed on the Warsaw Stock Exchange to identify companies managed in a responsible and sustainable manner. It takes into account the quality of reporting, the level of investor relations, corporate governance and liquidity, among others, whereby it simultaneously constitutes a real point of reference to measure the attractiveness of companies as investments.
Balancing market balancing market The balancing market is what is referred to as a technical market. That means it is not a place to sell energy. Its purpose is the physical delivery of the energy purchase/sale agreements executed by participants and balancing the demand for electricity with its generation in real time in the national electrical energy system (KSE). The existence of the balancing market is indispensable for the energy market to function. Entities that buy energy have an obligation to participate in this market.
CATALYST Market Catalyst market Bond market. It is run on the transaction platforms of the Warsaw Stock Exchange and BondSpot.
SAIDI System average interruption duration index in the supply of electricity calculated in minutes per user. It is a reliability index whose value is the sum of the products of interruption duration in energy supply and the number of users affected by the consequences of such an interruption during a year divided by the total number of users connected to a grid.
SAIFI System average interruption frequency index of long interruptions in energy supply. It is a reliability index whose value is the number of users affected by the consequences of all such interruptions during a year divided by the total number of users.
Gangue gangue The rock that is extracted from a deposit of a given mineral that is considered to be unusable waste.
Smart City smart city Smart city is a project involving the implementation of specific solutions exerting a real impact on citizens. One example is supplying tools to urban residents to monitor energy consumption, among others. This is possible thanks to the special platform called eLicznik (eMeter). TAURON supplies smart meters, for instance, under the Smart City Wrocław project.
Smart Home smart home System to control a smart home. SMART HOME technologies control burglar alarms, temperature control and electricity supply systems. This is a real-time power consumption monitoring solution that TAURON offers via a platform to check readings from the smart power meter.
Smart grid smart grid Smart electrical energy grids to facilitate communication between participants on the energy market to supply energy services while cutting costs and enhancing efficiency and integrating distributed sources of energy, including renewable energy.
smart metering Smart metering Smart metering system – electronic system used to measure energy consumption obtaining more information than from a conventional meter, and to send and receive data through electronic communication.
small carbonate sorbent Small carbonate sorbent Fine carbonate sorbent (limestone powder) – is a product derived from the process of dehydrating and profound milling of limestone whose active ingredient is calcium carbonate, CaCO3. Fine carbonate sorbent is used in processes to desulfurize flue gas – to remove SOx.
Enterprise Risk Management System ERM Set of rules, standards and tools to accomplish the fundamental objective of risk management i.e. ensuring the security of the TAURON Group’s operations. This system is regulated by the document entitled Enterprise Risk Management System in the TAURON Group, defining the TAURON Group’s enterprise risk management framework and rules.
Tauronet tauronet TAURON Group’s corporate intranet portal, one of the most important tools of communicating with employees. One of the largest platforms of its type in Poland at the time of publishing this report.
CCS Carbon dioxide capture, transport and geological storage technology.
CCU Capture and use (management) of carbon dioxide, eg. in the the chemical industry.
Smart Technology smart technology Control system in a smart home, among others - it is responsible for the safety and living comfort of residents.
Towarowa Giełda Energii S.A. Polish Power Exchange TGE Towarowa Giełda Energii (TGE) (Polish Power Exchange) is the only licensed power exchange in Poland. Presently, TGE runs the following markets: Day-Ahead Market (DAM), Commodity Forward Market with physical delivery (CFM), Property Rights Market for RES and Cogeneration. TGE also keeps a register of the Certificates of Origin for electrical energy produced in RES and in highly efficient cogeneration sources and the CO2 Emission Allowance Market.
Energy Regulatory Office ERO Government authority regulating the Polish energy market (electricity and gas, among others).
Coal winnings coal winnings The rock material taken from the mine face. It includes the mineral and gangue.
WACC Financial ratio - weighted average cost of capital.
WIBOR Warsaw Inter Bank Offered Rate Warsaw Inter Bank Offered Rate - interest rate used on the Polish interbank market for interbank loans.
WIG Index comprising all the companies listed on the Main Market of the Warsaw Stock Exchange that fulfill the basic criteria for inclusion in its indices.
WIG20 Index comprising the 20 largest and most liquid companies listed on the Main Market of the Warsaw Stock Exchange.
WIG30 Index comprising the 30 largest and most liquid companies listed on the Main Market of the Warsaw Stock Exchange.
WIG-Energy Sectoral index comprising companies participating in the WIG index and simultaneously classified in the energy generation sector.
WIG-Poland National index comprising only the domestic companies listed on the Main Market of the Warsaw Stock Exchange that fulfill the basic criteria for inclusion in its indices.
Underground mining pit underground mining pit Space created as a result of mining works.
Highly-efficient cogeneration high-efficiency cogeneration Generating electrical or mechanical energy and usable thermal energy in cogeneration to save the original energy used in the cogeneration unit in an amount no lower than 10% compared to the generation of electrical energy and thermal energy in separate systems or in a cogeneration unit with an installed electricity capacity under 1 MW compared to the generation of electrical energy and thermal energy in separate systems.
Green certificates green certificates "Green" certificates "green" certificates Certificates of origin, i.e. a document that confirms the generation of electricity with renewable energy sources. The green certificate system has been in force in Poland since 1 October 2005 (and has changed in the new RES Act).
Yellow certificates yellow certificates "Yellow" certificates "yellow" certificates Certificate certifying the origin of energy. Operators of cogeneration units fired with gaseous fuels or with a total installed power source of less than 1 MW may be compensated with yellow certificates.
TPA Third Party Access - TPA is one of the most important principles (besides unbundling) on which the deregulated energy market is founded. TPA gives an energy user the right to buy it from any energy seller of its choosing.
EUA CO2 emission unit.
IFRS International Financial Reporting Standards – standards and their interpretations approved by the International Accounting Standards Board (IASB).
RFX Request for proposal.
Global Reporting Index GRI Independent international organization whose mission is to create a joint global framework for communicating responsibility and sustainable development. The GRI guidelines are an international reporting standard for organizations regardless of size, business sector and venue. Their application gives a guarantee of consistency in terminology and indicators.
International Integrated Reporting Council IIRC The International Integrated Reporting Council is an organization whose purpose is to create globally accepted integrated reporting guidelines based on combining financial, environmental, social and corporate governance reporting in a clear, succinct, coherent and comparable format. It consists of global leaders such as the International Federation of Accountants (IFAC), the International Accounting Standards Board, the United Nations Environmental Program (UNEP), the International Organization of Securities Commissions, the World Business Council for Sustainable Development and the Global Reporting Initiative (GRI).
integrated reporting non-financial reporting standard International integrated reporting standard encompassing financial and non-financial data devised by IIRC.

GRI indicators