GB No. 4(19)/95


NATIONAL ENERGY CONSERVATION AGENCY (KAPE)

"We cannot afford further wasting energy, fuels, environment and time."

Facts:

  1. Energy consumption of Polish national economy is several times higher than in well developed countries.
  2. Environment has deteriorated, and in some regions the damage reached the level of ecological disaster.
  3. Social awareness of effective use of energy and its relation to environmental protection, as well as benefits of energy conservation is minute.
These are the reasons of research aimed at complex solution of Polish energy problems. Experts of the International Energy Agency calculated that changes of Polish energy policy may result in decrease of energy consumption by 17% to 45% of the current supply. The saving program must take into account economical and ecological problems, as well as a long term strategy of rational production and use of energy. As in Poland there was no institution relevant and able to establish and execute such a program, it became necessary to establish National Energy Conservation Agency (KAPE) - a public utility acting under Governmental control, responsible for initiation, running and coordination of any pro-saving activities on the energy consumption side.

The Agency alone cannot solve energy problems of Poland. KAPE is a tool for everybody who want, can and should support our efforts and get in touch with us in relation to all the areas covered by the Agency Statute.

There have been regional Energy Conservation Agencies organized around the country (so far, Upper Silesian, Jelenia Góra, have started; under organization are Wielkopolska, Krakowska, Bielsko- Bialska, West Pomeranian, Słupska). They are autonomous, but linked to KAPE with cooperation contracts regarding new energy policy.

The basic goals presented here is to establish situation, when energy conservation will be a good business for consumers and distributors. The final goal is a modern economy, safe and clean environment, and welfare of Polish families.

GOALS OF THE AGENCY

The basic goal of the Agency is to improve the energy efficiency of national economy, and its overall economical effectiveness.'Another goal related to the first one is to upgrade natural environment.'The results of Agency's activity should then be the following:

AGENCY'S ACTIVITY

Legislation - elimination of legal constraints, projecting new solutions - draft legal acts, ordinances, regulations and standards, preparing guidelines for energy saving national policy - as requested by Government.

Economical and financial - supporting energy conservation activities, assisting with obtaining loans for energy saving investments, implementing new systems of investment financing (tasks with postponed revenues, chain financing), preparing methods of technical and economical assessment and mechanisms for social and economical energy conservation undertakings.

Research and education - initiating research, innovation and implementation activities, organizing specialistic technical and financial consultancies for energy producers and consumers.

Promotion and information - promotion of efficient methods and ways of energy utilization, including social initiatives, cooperation with international institutions supporting energy conservation, stimulating mass media to promote energy conservation for the benefit of economy, environment and household budgets.

EXAMPLES OF PRO-EFFICIENCY UNDERTAKINGS

Construction

District heating

Power sector

Municipal management

Industry

Agriculture

Rationalization of energy supply and use is an especially important issue of State activity. The draft Energy Law indicates the importance of the task.

A valuable tool to execute the task will be the National Energy Conservation Agency Co., established as a result of an agreement among three parties: the Minister of Physical Planning and Construction, Minister of Industry and Trade and Minister of Environmental Protection, Natural Resources and Forestry. Three State owned units have their shares in the Agency. These are the Agency for Industrial Development Co., National Environmental and Water Management Fund, and Bank of Domestic Economy (Bank Gospodarstwa Krajowego).

The goal of the Agency is not income. The form of a joint stock company was chosen as there is no concept of "non profit" enterprises with legal personality in Polish legal system, and Commercial Code allows founding companies for other than commercial purposes.'The Agency is not an office, so it does not have individual management rights within the scope of responsibility of the founding Ministers. Its scope of responsibility and tasks depends upon practical conditions, and development in the public tasks area.

The Agency may prepare projects of specific solutions, which after being approved by the founders, will get the status of Governmental proposals.

FINANCING ENERGY SAVING UNDERTAKINGS

Stimulating private and public saving and the necessity to increase the saving rate are considered the basis of investment and sustainable economic growth. This is equally true for well developed, developing and Central and Eastern European countries.

Studies by domestic and international institutions dealing with energy problems define the size of the problem and the level of possible saving to become the future source of domestic capital accumulation for economic operations.

An attempt to solve the problem shows the necessity to prepare a national long term energy conservation program.

Its execution will require real financial support of the State budget, international financial institutions and foreign organizations supporting energy conservation.

KAPE will use its funds for investments of business units and natural persons aimed at rational energy use, in cooperation with banks and financial institutions. Thus, it will apply financing methods typical for these institutions.

Limited finances of KAPE decide upon the most common form of financial support, i.e., loans of varying interest rate and repayment terms.

The typical way of financing investments will be warranting loan repayment or assistance in repaying interest. The above activities will be based on analysis of documents presented by an investor.

Some energy conservation investments will require high risk financing forms (e.g. Venture Capital) or subsidies.'The Agency has been preparing detailed information on assistance conditions and procedures for investors interested in financial support.

Calendar

November 9,1990 - Sejm resolution on national energy policy guidelines until the year 2010, obligating the Government to establish the Energy Conservation Agency

May 19,1992 - Decision of Council of Ministers on establishing the Energy Conservation Agency

September 5,1992 - the Economic Committee of the Council of Ministers approved the idea to establish the Agency as a joint stock company with State Treasury shares

February 5, 1994 - Agreement on cooperation in establishment the Energy Conservation Agency Co. signed by: Minister of Industry and Trade, Minister of Physical Planning and Construction, Minister of Environmental Protection, Natural Resources and Forestry, Agency on Industrial Development, Bank Gospodarstwa Krajowego, National Fund of Environment and Water Management.

April 15, 1994 - establishing the National Energy Conservation Agency in the form of a joint stock company by: Agency on Industrial Development Co., Bank Gospodarstwa Krajowego, National Fund of Environment and Water Management

August 26, 1994 - registration of the KAPE

National Energy Conservation Agency (KAPE)
ul.Wspólna 4
00-926 Warszawa
tel. 48/22/621 65 21, 661 91 16
fax 48/22/661 91 17


GB No. 4(19)/95 | Contents