Damian Bąbka (Qair Polska): Until recently, it seemed that energy security on the scale of individual entities is indisputable

Damian Bąbka, a member of the management board of Qair Polska, provided insights into the evolving energy market and the challenges associated with the ongoing energy transformation. Qair is an independent producer of renewable energy with a substantial presence in twenty countries and a project capacity totaling several gigawatts at various stages of development. The company’s global market experience spans over three decades.

Mr. Bąbka’s perspective on the energy sector likely covers a wide range of topics, including shifts in energy generation from conventional to renewable sources, the integration of new technologies like battery energy storage systems, policy and regulatory changes affecting the industry, the importance of sustainable practices, and the strategic considerations for navigating the changing energy landscape. If you have specific questions or areas of interest related to Mr. Bąbka’s insights or the energy industry in general, feel free to ask for more detailed information.

We are in the process of energy transformation. What has changed in the approach and energy policy of enterprises?

Indeed, the approach to energy purchasing and contracting strategies has been evolving in recent years, influenced by various factors such as the increasing volatility of energy prices, the need for sustainability, and the transition to renewable energy sources. Many companies are realizing that a short-term approach to energy procurement may not be conducive to long-term stability and growth.

Energy security stability are crucial for the uninterrupted operation of businesses and the execution of long-term development strategies. Relying solely on short-term contracts or volatile energy markets can expose companies to significant price fluctuations and potential disruptions in energy supply. This can negatively impact operational costs, profitability, and the ability to plan for the future.

As a response to these challenges, many companies are shifting toward more diversified and strategic energy procurement strategies. These strategies may involve a combination of longer-term contracts, hedging mechanisms, renewable energy sourcing, and even on-site generation through solar panels or wind turbines. By securing energy supply at predictable rates and incorporating renewable sources, companies can enhance their energy resilience, reduce their carbon footprint, and better align with sustainable practices.

Furthermore, the emergence of energy storage technologies allows businesses to store excess energy generated from renewable sources during times of lower demand and use it when needed, providing greater control over energy consumption and costs.

Overall, a comprehensive and forward-looking energy procurement strategy is essential for businesses to ensure both short-term stability and long-term growth in the face of changing energy landscapes and evolving business needs.

What are the benefits of these changes?

The shift towards corporate Power Purchase Agreements (PPAs) represents a revolutionary departure from the prevailing energy procurement strategy. In contrast to short-term contracts, corporate PPAs provide long-term security, ensuring stable energy prices for extended periods, often spanning 10 to 20 years. This arrangement offers businesses predictability in budgeting by eliminating the volatility associated with traditional energy markets. Moreover, corporate PPAs underscore a company’s commitment to sustainability by sourcing energy from renewable sources like wind or solar, verified through the confirmation of origin. This strategic transition aligns with the growing demand for environmentally conscious practices, enabling companies to showcase their dedication to both financial stability and ecological responsibility.

How can consumers and the environment benefit from switching to green energy in companies?

I’m confident that companies prioritizing renewable energy sources will enhance their market standing at the cost of less socially responsible counterparts. This trend will be driven by both evolving legislation and consumer preferences. The youngest generation entering the workforce is expected to strongly support environmentally conscious practices, valuing social responsibility as much as financial considerations. In the future, beyond product pricing, details about environmental impact will likely become a standard component of consumer information, reflecting the increasing significance of sustainability in the business landscape.

Why do large companies want to locate their headquarters in the vicinity of RES power plants? Will the whole region benefit from it?

Indeed, the focus on renewable energy sources (RES) is proceeding on dual fronts and extends to the positioning of RES facilities near major industrial complexes. This strategy facilitates direct access to green energy from the source, mitigating additional strain on Poland’s power grid. Regulatory shifts in Poland are aligning with this approach, heralding positive prospects for RES producers. The nation stands to substantially enhance its investment appeal as a result. Notably, there’s a growing trend of Western enterprises opting to establish significant production capacities in Poland. A pivotal condition for these ventures is access to clean energy, exemplifying the pivotal role of green energy in shaping industrial decisions.

What is the current demand for green energy on the Polish market?

The prevailing situation in Poland reflects a demand that surpasses the available supply, resulting from substantial obstacles encountered in the expansion of renewable energy sources (RES) over recent years. This challenge is particularly pronounced in the wind sector, which is currently the most sought-after choice for energy consumers. Comparatively, the environment for photovoltaic installations is more favorable for recipients. At Qair, we provide a customized blend of both wind and photovoltaic technologies, carefully aligned with each customer’s consumption pattern to ensure an optimal fit.

How does Poland compare to West in this respect?

Electricity contracting has become the norm in Western countries, with a yearly contracting of production from sources totaling 30-40 GW globally, with the United States leading the way. Both European and Asian markets are experiencing robust growth in this area. In Poland, we are at the initial stages of embracing this approach.

What challenges do we face in the next stages of the energy transformation?

From my perspective, two crucial factors come to the forefront. Firstly, there’s a pressing need to reinforce Poland’s power grid through substantial investments. This infrastructure has now become as pivotal as the development of the motorway and expressway networks in the past. Secondly, stabilizing the legal framework is paramount to support and promote corporate Power Purchase Agreement (PPA) solutions. The current volatility makes it challenging to commit to signing long-term contracts, such as those spanning 10 or 15 years. The perspective of financial institutions further reinforces our business model, which relies on commercial solutions without a support system.