Over past two years, electricity prices in Poland have increased by over 30%. Along with them, the price associated with carbon dioxide, for which today we have to pay almost 6 times more per ton of CO2 emitted than in 2017.

Along with the increase in electricity and emissions prices, we note a decrease in natural gas prices. The increase in the share of foreign suppliers on the national market and the development of transmission infrastructure influenced the price of gas in summer, which fell below PLN 60 / MWh. Gas contracts concluded in 2019 were obtainable between 10% and 50% cheaper than those concluded year earlier. In addition, gas technologies emit almost half less CO2 than coal technologies.

In addition, the price of installing photovoltaics is falling. In 2018, 1 MW of capacity installed in this technology costed over 3 times less globally than in 2010. While the costs of purchasing conventional technologies remain unchanged, the price for installing capacity in renewable energy drops every year. Given the growing number of suppliers and the increasingly competitive market for renewable energy technologies, the downward trend in infrastructure prices may continue.

Electricity from photovoltaic sources below PLN 100 / MWh is already being contracted in Europe, while in Poland energy prices in 2019 exceeded PLN 250 / MWh on the Polish Power Exchange. In Poland, over 90% of electricity comes from coal.

The above mentioned factors will force or have already forced many changes not only within the energy-intensive industry. This also applies to enterprises for which the price of heat and electricity is one of the main operating costs.

The answer to this challenge is a thought-out strategy, an energy concept addressing the future needs of the company.

We have created a multidisciplinary team consisting of engineers, financiers, economists and people who work with the above issues within energy consulting on daily basis. Thanks to access to KPMG's international resources, we have global set of data and solutions used by companies that have already proceed with energy transformations, or strategy change.

Each company has its own heat and electricity demand profile. Due to this, we tailor not only our Team, but also the services. Their overall scope can be defined within the following groups that construct comprehensive Energy Strategy:

• Macroeconomic analysis, emission costs and regulatory conditions affecting energy and fuel costs
• Review of assets, analysis of existing generation infrastructure and its parameters, assessment of the current structure of the Company's demand for heat and electricity, indication of areas increasing energy efficiency
• Analysis of available variants and technological solutions, proposal of technical concepts, estimation of necessary investment outlays, economic and environmental effects
• Review of processes and planned investments in terms of the possibility of using existing support and funding systems
• Implement solutions that minimize the costs of modernization, renovation and downtime (Predictive Maintenance)