WARSAW, March 22 Polish state-run bank BOS
, which finances environmental projects, said on
Wednesday it booked an impairment charge of almost 100 million
zlotys ($25.24 million) in 2016 for loans it made for wind farm
BOS said that the payments on the wind farm loans were not
delayed as of the end of 2016, but it took the impairment due to
an uncertain outlook for wind farms in Poland.
BOS' shares fell sharply and were more than 8 percent lower
by 0913 GMT.
The bank has one of the biggest wind farm loans portfolio
among Polish lenders.
Most of Poland's electricity comes from coal-fired
generation but under European Union law more has to come from
renewable energy sources by 2020.
Poland's government wants to help its loss-making coal
mines, but is also working on new regulations for a support
scheme for renewables and plans to replace the current system of
tradeable green certificates.
The green certificate system has become oversupplied causing
a slump in prices, which has hit the cash flows of wind
Poland has around 5 gigawatt of wind farm installed capacity,
which generates around 6 percent of electricity. According to a
local wind farm lobby group PSEW, private investors invested
around 34 billion zlotys ($8.58 billion) in the construction of
wind farms in the country in the past few years.
Currently around 13 percent of power in Poland is generated
in renewable sources, but the trend has significantly slowed
down, Polish wind farm lobby group PSEW said.
State-run utilities - PGE, Tauron and
Energa have also had to write down the value of their
wind farm business.
($1 = 3.9625 zlotys)
(Reporting by Agnieszka Barteczko. Editing by Jane Merriman)