Explore Poland’s wind farm revolution! Dive into the aftermath of a daring energy price freeze as Orlen stocks tumble. What’s Really Happening?
Poland’s new government just dropped a bombshell at the parliament doorstep! They want to hit pause on energy prices for the first half of 2024 and shake up the rules for building wind farms. Hold on tight, because they’re dipping into a pandemic fund to tackle the fallout from the energy crisis, with big energy players in Poland chipping in. Cue the drama: Orlen, the oil and gas giant, saw their stocks take a nosedive after the big reveal.
Are Wind Farms the Future?
What’s on the table? Bringing back the rule that says you’ve got to trade electricity on the country’s energy exchange – a rule that got tossed out by the old Law and Justice (PiS) government. The new government, made up of pro-European parties, is all about kicking Poland into gear and ditching coal. They’ve got their eyes set on hitting a whopping 70% of energy from renewable sources by 2030, up from a measly 15% last year.
Here’s the deal: Poland’s got some of the priciest power in Europe, mainly because they’re hooked on coal for about 70% of their electricity. So, the new plan? Freeze energy prices for the everyday peeps, like folks in houses, schools, and hospitals. Orlen, the big player here, is throwing a hefty 14 billion zloty ($3.55 billion) into the ring this year.
But wait, there’s drama in the air! Orlen’s big boss, Daniel Obajtek, took to social media on platform X, scratching his head and asking, “Who’s trying to bring down ORLEN, and what’s the game plan here?”
Zastanawiam się komu zależy na obniżaniu wartości koncernu ORLEN i uderzaniu w jego stabilność finansową, i jaki jest tego cel. Projekt ustawy, o którym piszą media, nakładający na ORLEN składkę w wysokości 15 mld zł, oznacza 15 mld zł mniej na inwestycje w polską transformację…
— Daniel Obajtek (@DanielObajtek) November 29, 2023
Orlen’s stocks did a rollercoaster dip of 9.3% in the middle of the afternoon on November 20. Back when the PiS crew was running the show, they tossed out subsidies for folks using heat pumps and solar panels but slammed the brakes on wind farms.
Now, the plot thickens with a proposed law that chops down the space between a wind turbine and neighborhoods. It’s going from a whopping 1,500 meters to a breezy 300 meters, depending on how much noise the thing makes. ($1 = 3.9507 zlotys).
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