Agencja Rynku Energii S.A.

Our activities are focused on the needs of enterprises from the energy sector and industry, government bodies and public institutions, as well as a wide range of new energy market participants - prosumers.

Our consultants systematically monitor the fuel and energy market in Poland and worldwide. We provide ongoing, operational support for energy companies and other entities operating in the fuel and energy market in Poland and abroad, performing analytical studies on various topics, benchmarking analyses in the domestic and international markets, expert opinions, business plans, and offering direct consulting. We prepare individual studies on improving energy efficiency of companies, particularly regarding electricity management strategies aimed at cost reduction, advise on the selection of suppliers and negotiating terms of energy sales contracts, and issue recommendations on future electricity price levels in retail contracts. An important segment of services is investment activity consulting, focused on the renewable energy segment, especially the rapidly developing small and large-scale photovoltaic market. We provide advisory services for entities from the heating sector interested in modernizing heat generation sources in urban heating systems or individual heat sources. In our advisory profile, we are particularly attentive to the rapidly developing segment of prosumer energy. We are also interested in the expanding segment of electromobility in the country and worldwide, related to the broader use of alternative fuels in transport - we conduct research on the profitability of changing car fleets to electric/hybrid for all those seeking savings or wishing to modernize their company's image.

An important area of advisory services is also organizing and conducting training for various recipients interested in the functioning and development of the Polish energy market. At present, the training organized by ARE S.A. has become a permanent element of new services provided to our Clients.

Advisory activities at the Energy Market Agency SA cover three main service areas:

AREA I: BUSINESS CONSULTING

Business consulting includes individual services dedicated to enterprises, housing cooperatives and communities, and other energy consumers. The aim of these services is to support the activities of these entities in areas related to improving energy consumption efficiency in their organization, or investment activities in technologies involving zero-emission energy generation. As part of this service, we also offer support to all interested companies and individuals in implementing prosumer energy.

1. Advisory services for entrepreneurs in the area of improving energy management efficiency

   Electricity management strategies for the next 2-3 years, focused on cost reduction.

   The purpose of the service is to prepare a medium-term electricity management strategy for the Client. The service is aimed at both cost and energy optimization. Energy purchase costs can be a promising area for economic optimization of the Client's activities. Internal and external factors play an important role, including legislative ones, particularly indicating the need to improve energy efficiency and supporting this direction of action.
    

   The scope of the offered Strategy includes:

   • Analysis of the company's market environment, including in particular:
     • review of the electricity suppliers market and regulations, including analysis of national and EU regulations (European Green Deal, "Fit for 55" package and others);
     • identification of possible sources of electricity acquisition, including min.: contracting based on stock exchange quotations, PPA and cPPA (virtual and physical) and other solutions e.g. construction of own generation unit and/or energy storage, (advantages, disadvantages, risks);
     • electricity price forecast until 2030 for generation sources as above;
   • Analysis of the company's energy situation:
     • review of energy audits and other available materials on the company's energy situation;
     • analysis of current electricity supply contracts in terms of electricity price and contract nature (e.g. fixed price, price based on stock exchange quotations);
   • Energy strategy – directions and conditions for acquiring energy for the company (possible scenario analysis), in particular:
     • estimation of electricity costs after strategy implementation;
     • assessment of economic viability of investments proposed in the analysis;
     • sensitivity analysis of the strategy to changes in the legal and business environment;
     • possibility of obtaining financial support (e.g. from EU programs or targeted grants), including analysis of access criteria.
        

• Recommendations regarding future electricity price levels in retail contracts (variant analysis).

  The purpose of the service is to prepare a comprehensive analysis of the electricity market situation in the retail segment for the Client. By ordering the expert opinion, the Client will be able to make an informed decision about the current purchase of electricity at a rational price.
  The expert opinion will analyze market factors, such as current emission allowance prices, property rights prices, and electricity prices on the exchange on the forward commodity market. Elements such as the correlation of electricity prices with other market factors, the relationship of prices in the domestic market with prices in neighboring markets, and the impact of energy policy on shaping electricity prices will be taken into account.
  The offered report will also include an analysis of available forms of electricity purchase, such as purchase at tariff prices, "clickable" energy purchase model, or direct purchase of energy on the wholesale market.

  The service will cover the following issues:

  • analysis of the situation on the wholesale electricity market in the current period of preparing the expert opinion,
  • calculation of energy fee rates for future periods (quarter, year)
  • risk analysis of electricity price increases or decreases in contracts for the next year,
  • analysis of factors affecting electricity prices for the end consumer,
  • analysis of the most common forms of electricity contracting by the end consumer.

• Reports on the prospects for electromobility development in Poland.

  Dedicated study on the profitability of replacing the company's car fleet with an ecological fleet based on electric and/or hybrid cars. This individual service is addressed to companies with a large fleet of combustion vehicles for various purposes. The result of the analysis is a report assessing the legitimacy and profitability of replacing the car fleet with an ecological one at the time of analysis, as well as indicating the predicted date in the future for making such a decision if the analysis for the current period shows the unprofitability of the project.

• Advisory services for the modernization of urban heating systems or individual heat sources.

  As part of this service, the advisor will present to the Ordering Party a concept of possible directions for modernizing the heat source, leading to a reduction in the use of solid fossil fuels and a significant reduction in CO2 emissions, and ensuring the acquisition of the status of an efficient heating system, with possible use of renewable energy. Our attention will be mainly oriented towards projects whose implementation will contribute to achieving the highest indicator of energy efficiency and cost-effectiveness of the modernized heat source. In close cooperation with the Client, we will indicate the most optimal modernization variant for a given heating system, and we will also perform a full analysis of the economic viability of investing in a new generation source, for each of the considered variants, based on technology using natural gas/biogas, biomass, or other solutions.

  As part of the performed service, the following issues will be developed:

  • Technical analysis of the current system, including a review of the applied technology and verification of the existing and future heat balance in the company,
  • Technical proposal for system modernization, based on, among others, gas, RES, waste fuels, solar collectors, heat pumps, etc.
  • Full economic analysis of the investment in system modernization, including the investment payback period, projection of financial flows, potential revenues from cogeneration auctions (if applicable).
  • Optionally, the possibility of applying for so-called white certificates.

  As a result, the Ordering Party will receive a service that will be the basis for ordering project documentation and implementing the modernization of the source in the heating system.

2. Advisory services in the renewable energy sources (RES) segment

   • Support for RES investors in the field of investment efficiency assessment.

     Individual service addressed to investors from the RES industry, with particular emphasis on investments concerning the construction of photovoltaic farms and large-scale PV installations, financed by banks and from other sources of capital acquisition. The product is a cost-benefit analysis and risk assessment of a given investment project in the process of granting an investment loan.

   • Inventory of potential locations for PV installations in facilities indicated by the investor and technical audits of existing PV farms/installations, for the purpose of assessing the validity of decisions made by investors.
   • Forecasts of market development and trade in energy biomass in Poland.
   • Prospects for the development of wind technologies on land and at sea.
   • Individual business advisory meetings and consultations, particularly in projects related to large-scale photovoltaics.
3. Services dedicated to prosumer energy
   • Expert services for future prosumers from the PV industry
     • comparative audit of PV installations for prosumers, concerning an independent and objective comparison of two or more offers for a prosumer photovoltaic installation from different suppliers.
     • assessment of the profitability of building a PV installation,
     • analysis of offers from installation companies in the photovoltaic industry, recommendations regarding technical solutions, installation and service costs, materials, etc.
   • Expert services for potential heat pump users
     • Paid additional services in the field of individual analysis and assessment of the profitability of investing in heat pump installations for individual and institutional users.
   • Individual advisory meetings and consultations for investors interested in implementing and developing prosumer energy.

AREA II: TECHNICAL AND ECONOMIC ANALYTICS FOR ONGOING OPERATIONAL AND MANAGEMENT SUPPORT IN ENERGY COMPANIES AND OTHER ENTITIES OPERATING IN THE FUEL AND ENERGY MARKET IN POLAND AND ABROAD.

1. Standard and individual analytical works and reports, expert opinions and short-term forecasts
   • technical and economic projects and reports concerning domestic and foreign energy markets,
   • market benchmarking with assessment of the market position of energy market participants,
   • benchmarking of energy technologies,
   • analyses in relation to the activities of energy companies listed on the WSE,
   • analyses for energy consumers,
   • analyses in the field of losses and failure rates of distribution networks,
   • analyses in the field of electricity prices for end consumers in Poland and selected European countries.
   • short-term forecasts of electricity prices, coal costs and other price indices related to energy or fuel prices.
2. Analytical services for foreign business entities and scientific centers, for projects related to the common energy policy of EU countries.
   • Projects in the field of analysis of energy media and energy carrier markets,
   • Provision of consulting services for companies and European financial institutions regarding the functioning of the Polish energy market in aspects of created energy policy and current legal, economic and technical issues.

Through the implementation of advisory services, our Clients will find answers to the following questions:

• Which subsector had the largest share in the sector's achieved result, and which showed the highest profitability?
• How are production and electricity consumption changing, which production technologies are developing faster?
• How dynamically is the renewable energy segment developing and what's next with the energy use of biomass?
• How are unit production costs shaped according to individual technologies?
• What is the state of Polish power grids measured by, among others, the loss indicator and failure rate level?
• Is the wholesale and retail electricity market in Poland already fully competitive?
• How is the structure of energy sales in the wholesale market evolving?
• What about electricity prices in wholesale and for end consumers, and what may be the trends of changes in the short term?
• How are the prices of coal, gas and electricity changing in Poland, Europe and the world?
• How are investment expenditures shaping up for producers and operators, and are they sufficient for necessary modernizations and asset restoration?
• Polish energy in Europe – where are we? Are Polish companies able to compete with foreign concerns in the integrating European market?

A detailed list of cyclical reports and analyses from Pillar II of advisory services is presented below. We also offer our Clients the preparation of dedicated Studies, carried out on individual orders and based on assumptions agreed with Clients. A list of titles of works of this type (individually ordered) is presented in the final part of this chapter.

AREA III: ORGANIZING AND CONDUCTING TRAINING ON THE FUNCTIONING OF THE POLISH ENERGY MARKET

Training organized by ARE S.A. for various recipients interested in the functioning and development of the Polish energy market has currently become a permanent element of new services provided to our Clients,
In 2024, at ARE we conduct three dedicated training programs cyclically:

1. "Principles of energy market functioning in Poland"
2. "Obligation to reduce energy consumption by public units"
3. "Basics of the capacity market in Poland"

These trainings are an opportunity to acquire knowledge that will allow listeners to raise their basic qualifications and enable more effective fulfillment of duties in their energy company, which will allow for further, deeper specialization in their business profile. We dedicate them to all people wishing to systematize their knowledge, employees of companies from the industry, market analysts, financial advisors advising the energy industry, entrepreneurs wondering how the energy market and capacity market function and whether there is a place for their capital, but also journalists or publicists wishing to understand how the domestic energy market works. The trainings are also dedicated to all persons and employees dealing with issues of improving energy efficiency, especially in public administration, local government, and other public, cultural, or social organizations and institutions.

Independently, in response to reported needs, ARE also organizes and conducts dedicated training on various topics of interest to corporate clients from the financial industry, fin-tech, large energy companies, and industrial consumers.