Before creating Wento, you spent a significant amount of time researching the energy market in Poland. What led you to believe that energy was a worthwhile investment at that time?

The Polish energy market is unique due to its high carbon intensity, with 87% of our electricity generated from hard coal or lignite. This has resulted in a higher price compared to the rest of the EU, especially with the recent increase in CO2 allowances. Additionally, the demand for electricity has been increasing by an average of 1.5% per annum over the past eight years, which is difficult to meet with the current outdated and technologically limited generation base. We knew that investing in renewables was the logical solution, as thermal technologies are transitioning from base loads to a balancing role.

Your strategy is to develop projects and sell them to other entities, rather than operating them yourselves. Why did you choose this approach?

We are primarily financial investors and prefer to invest capital for the shorter term in order to generate a higher return. This model aligns with our preferences and generates more profit than operating a wind or solar farm for 20-25 years.

Do you believe that now is a good time for further investments in renewable energy in Poland?

While there was a lot of enthusiasm for wind technology in the past, the market has since become subject to tougher regulations and many governments have changed their approach towards renewable energy. In Poland, the 10H rule has effectively stopped new wind projects. However, the solar sector is still thriving due to its low cost and ability to be deployed in a matter of three to four years. Small scale projects of <1MW are the best approach and have been successful in auctions. The demand for solar projects has been strong, with all of our projects being sold immediately after auction.

How has the COVID-19 outbreak impacted your business and the energy sector in the short term?

We do not expect a significant impact on our business due to the COVID-19 outbreak, but there may be some manageable delays in construction and equipment shipment.

What measures did your organization take to manage the crisis?

We reached out to the administration to request relaxation of completion deadlines for projects under the CFDs assigned during 2018 and 2019 auctions, as potential delays could jeopardize meeting the completion deadlines.