The World Bank Report No: ISR3387 Implementation Status & Results Poland Poland Puck Wind Farm Project (P074546) Public Disclosure Copy Operation Name: Poland Puck Wind Farm Project (P074546) Project Stage: Implementation Seq.No: 1 Status: ARCHIVED Archive Date: 18-Dec-2013 Country: Poland Approval FY: 2007 Product Line: Carbon Offset Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 27-Jun-2007 Original Closing Date Last Archived ISR Date Effectiveness Date Revised Closing Date Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Overall Implementation Progress (IP) Satisfactory Overall Risk Rating Implementation Status Overview The project has provided carbon finance support for the implementation of a 22 MW wind farm in Puck on the Polish Baltic Sea coast. The wind farm was commissioned and started producing electricity by the end of 2006. The Project was expected to produce approximately 50 GWh of electricity per year over the 20 years of expected life of the turbines. After a successful first two years, the electricity production went below the projected amounts (on average about 43GWh per year) to 86 per cent of the planned 50 GWh/y, which is explained as the area experienced unusually low wind, affecting the performance of not only the Puck plant, but also of the other wind farms in the vicinity. However, the PDD mentions an alternative assumption for the Project’s expected average power generation – 42.5 GWh/y, which was rejected by the Project Entity. Despite the performance of the last few years being below Project Design Document (PDD) projections – for reasons outside the control of the Project Entity and the World Bank – the overall project implementation can be rated as satisfactory since the project generated ERs slightly higher than expected according to the ERPA (ERPA estimations of ER generation were based on an alternative assumption for expected average power generation). Total verified Emission Reductions (ERs) from the project commissioning date in 2006 through 2012 total 253,823 tCO2e. The Project generated slightly more ERs than the minimum volume required under the ERPA, however, because the ERs from 2009 will not be transferred, the Project is expected to deliver 86 percent of the contracted amount by the closing date, December 31, 2013. Reason for not being able to transfer ER was that on September 15, 2009, the Republic of Poland passed the Act on the System to Manage the Emissions of Greenhouse Gases and Other Substances (Act). The Act, among others, provides for detailed procedures with Public Disclosure Copy respect to the issuance and transfer of AAUs and ERUs, including specific deadlines for the submission of transfer requests to the Polish Ministry of Environment (MoE). In 2010, the Bank was unable to meet the deadline to submit the transfer request due to the temporary suspension by UNFCCC of TŰV-SŰD, the Accredited Independent Entity (AIE) commissioned by the Bank to undertake the verification of the annual ER reports. The World Bank and the Polish Government have agreed to cancel the transfer of AAUs for the ERs generated in 2009 year and the corresponding payment to Dipol. Due to this cancellation, the Project is expected to deliver 86 percent of the minimum contracted amount of ERs before the Project’s closing date, December 31, 2013. Locations Country First Administrative Division Location Planned Actual Poland Not Entered Gniezdzewo Page 1 of 2 The World Bank Report No: ISR3387 Key Decisions Regarding Implementation No major issues were found on verification of ERs generated in 2012 year, during supervision mission carried out in March 2013. The project generated less ERs than the amount of Contract ERs according to the Emission Reduction Purchase Agreement due to a change in the wind speed pattern in the Gdansk region. Public Disclosure Copy Related Projects There are no related projects. Public Disclosure Copy Page 2 of 2