As Poland gears up for Prime Minister Vladimir Putin’s visit to Warsaw (part of a wider international gathering to commemorate the breakout of WW II) government officials are working behind the scenes to ensure adequate Russian natural gas supplies to avoid another shut off this winter. At the same time, global climate and EU emissions standards are forcing Poland to lower the use of coal, its primary domestic energy source. In its quest for greater energy security Poland, like many other Central European countries, is looking to diversify its energy sources and suppliers. By investing in renewable energy, Poland not only stands to become a regional leader in the “green” revolution, but also strengthens its long-term growth prospects.

Poland (along with Bulgaria and the Czech Republic), is considered an up-and-coming wind energy destination. Industry insiders pinpoint good wind resources, improving energy infrastructure and EU subsidies as driving forces behind a viable wind industry, one that could eventually rival established producers such as Germany or Spain. GCube, a leading insurance underwriting agency dealing with renewable energy, has identified Central Europe as a growing market. This April, German electricity producer RWE announced plans to invest €500 (zł.2,000) million in Polish wind farms. Even the European Bank for Reconstruction and Development has stepped in to finance up to €35 (zł.143) million for the construction and operation of three wind farm projects in southeastern Poland.

The economic impact of developing a renewable energy sector in Poland is substantial. First, it sets higher standards through the application of international best practices and environmental impact assessments. This is critical to maintaining competitiveness across Poland’s SMEs, as they currently spend less on environmental compliance.

Second, it enables diversification away from higher labor- (and energy-) intensive manufacturing towards a more knowledge based “green” economy. Finally, making early investments will encourage long-term investor interest, especially as Poland seeks to attract investment and build partnerships with leading European and American environmental technology firms.