WARSAW Oct 3 GDF Suez would demand
compensation from Poland if the country brings in a new
renewables law cutting support for green energy, Chief Executive
of GDF's Polish unit Grzegorz Gorski was quoted saying on
The French company is most concerned about plans to cut
support for biomass co-firing, the largest source of renewable
power in Poland's energy mix. This process involves mixing wood
and other plant material with coal before it is burnt in power
"The rules proposed for biomass co-firing, which is key for
us, are significantly worse than those in the currently
applicable energy law," Gorski was quoted as saying by business
daily Puls Biznesu.
"(If the new law is enacted) we will go to arbitration and
demand several hundred million zlotys from the state."
Poland, which generates 90 percent of its electricity from
coal, is required by the European Union to reduce carbon
emissions and to generate at least 15 percent of its power from
In July, Poland's economy ministry proposed a draft bill
that reduced overall state support for renewable energy,
favouring solar power and offshore wind over biomass co-firing
and onshore wind.
The draft law has also drawn criticism from Poland's
treasury ministry, which oversees state assets and controls the
country's largest utilities, the wind power lobby and largest
power producer PGE.
(Reporting by Maciej Onoszko. Editing by Jane Merriman)