Frost & Sullivan: Will Offshore Wind Farms Feature on the Polish Horizon?

LONDON, August 2, 2010 - Development of offshore wind farms in Poland has been slow, despite the
country's leadership of the wind energy sector in Central and Eastern Europe.
Although the offshore wind energy market is well-established in Western
Europe, primarily in the UK and Denmark, central and eastern European nations
have yet to appear on the offshore wind energy market map.

    (Logo: photos.prnewswire.com/prnh/20081117/FSLOGO)
    (Logo: www.newscom.com/cgi-bin/prnh/20081117/FSLOGO)

Analysis by Frost & Sullivan (www.energy.frost.com) shows that in
Poland, the total installed capacity reached 1,005 MW in June 2010, all
located onshore. Although some developers, such as PGE (Polish Energy Group),
have expressed an interest in establishing offshore wind farms, the country
presently lacks the wherewithal and support to implement these developments.

The most formidable obstructions faced by the sector include the present
absence of legislation enabling offshore wind projects, undeveloped grid
infrastructure, and the lack of grid connectivity.

"Besides grid issues and a lack of legislation," says Frost & Sullivan
analyst Magdalena Dziegielewska, "several other aspects are holding the
offshore wind market development back. One of them is that offshore platforms
are established as artificial islands which, according to the Polish law, can
only exist for 5 years. This is a complication, as the investment process
takes approximately 7 to 8 years and the wind farm operates for at least
20-25 years."

However, recent changes bode well for the market. External pressure
placed on Poland is encouraging a move towards offshore farms. In order to
fulfill EU obligations, Poland will have to boost its total installed
capacity from the present 1,005 MW to 10,000-12,000 MW by 2020, according to
the European Wind Energy Association (EWEA). This increase will be very
difficult to achieve without the high productivity of offshore wind energy
farms.

Also, the Polish Marine Network Consortium has been created to spur
development and remove barriers faced by the sector. "One way to do so," says
Dziegielewska, "is to develop the Polish Baltic Track in order to establish a
high voltage, transmission submarine network. This will assist in connecting
offshore wind park power transformers with a main grid to allow future
connections of wind parks."

An optimistic outlook suggests that with the necessary legislative
changes and grid development, the first offshore wind parks may be
established during the next 10 years.

To receive a complimentary insight on the offshore wind market in Poland,
please send an e-mail to Chiara Carella, Corporate Communications, at
chiara.carella@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, and country.

This market insight is part of the Energy & Power Growth Partnership
Services programme, which also includes research in the following markets:
large hydropower, biomass energy and offshore wind energy. All research
services included in subscriptions provide detailed market opportunities and
industry trends that have been evaluated following extensive interviews with
market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to
accelerate growth and achieve best-in-class positions in growth, innovation
and leadership. The company's Growth Partnership Service provides the CEO and
the CEO's Growth Team with disciplined research and best-practice models to
drive the generation, evaluation, and implementation of powerful growth
strategies. Frost & Sullivan leverages over 45 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from 40 offices on six continents. To join our Growth Partnership,
please visit www.frost.com.

    Contact:
    Chiara Carella
    Corporate Communications - Europe
    P: +44-(0)-20-7343-8314
    M: +44-(0)-753-3017689
    E: chiara.carella@frost.com

Chiara Carella of Frost & Sullivan Corporate Communications - Europe, +44-(0)-20-7343-8314, mobile, +44-(0)-753-3017689, chiara.carella at frost.com