The State Forests signed an agreement with a private company to build wind farms in forest areas. The project “Forest of Energy” was a pilot programme. The NIK audit revealed that the measures taken were non-compliant with the law. The Act on Forests did not provide for the use of forest land for wind farms. Besides, the land management plans effective on the agreement signing date did not assume installation of wind power plants in those locations. NIK points out that it would require statutory changes to carry out wind power investments in forest areas.
Audit no. I/24/003/LSZ
NIK audited the Directorate General of State Forests (LP) to evaluate the adequacy of planning, preparation and conduct of investments as part of the project “Forest of Energy”.
In July 2021, the State Forests and a private company signed a letter of intent in which they declared their willingness to cooperate on the construction of wind farms. Two pilot projects were planned in the areas under the State Forests’ management. The pilot programme “Forest of Energy” was implemented based on a decision of the then Director General of State Forests of October 2021.
The State Forests selected a private company as investor. The company submitted its cooperation offer in autumn 2020. The cooperation was to involve forest land lease for wind power plants. Local forest districts and the company were to be parties to the agreement. The company committed to covering all costs and obtaining all the necessary consents and permits. The company indicated potential investment locations along with the cooperation offer.
On 21 December 2021, the then Director General of State Forests requested six selected forest districts to sign an agreement to lease forest land for wind farms. The agreements were signed in December 2021 and January 2022. However, during the NIK audit the pilot activities were run in three locations (different conditions made it necessary to withdraw from some locations).
NIK has negatively evaluated operations of the Directorate General of State Forests in terms of planning and preparation of investments as part of the project “Forest of Energy”. The Directorate General of State Forests took measures to launch wind farms in forest areas managed by the State Forests, although the Act on Forests did not provide for the use of forest land to conduct such activity. The LP Director General’s request to forest managers from six forest districts to sign forest land lease agreements with the company for the purposes of design, construction and operation of wind farms was inconsistent with the forest management objectives and tasks set out in the Forest Management Plan. Participation in building wind power plants does not fall within the scope of the management of forests owned by the State Treasury, which was entrusted to the State Forests. It needs to be underlined that the State Forests manage land and movables as part of forest management, not e.g. energy management. The legislator defined forest management as: forest activity in terms of forest management, maintenance and expansion of forest resources and crops (...).
Forest management should be based on the following principles:
- universal protection of forests;
- sustainablility of forest maintenance;
- continuity and sustainable use of all forest functions;
- expansion of forest resources.
The Forest Management Plan did not provide for the exclusion of land from this management in the category of forest management objectives or tasks to invest in wind power plants. The legislator entrusted the State Forests with the management of forests owned by the State Treasury, so it should be considered unjustified to transfer this management to another entity (e.g. a company) to invest in wind energy. It is worth noting that the local land development plans effective in the areas covered by the lease agreements, as at the date of concluding these agreements, did not provide for the location of wind farms in the said areas. There was no change in the use of forest land. Nevertheless, in December 2021, the former Director General of State Forests sent a letter to the forest inspectors, requesting them to sign the lease agreements.
In view of the audit results NIK recommended ensuring the lease of forest areas in compliance with the forest management objectives and tasks set out in the Forest Management Plans. In addition, NIK pointed out that the implementation of investments in wind energy in forest areas would require statutory changes. This was also indicated by the Ministry of Climate and Environment.
The idea of building forest wind farms was also negatively reviewed by the Nature Conservation Council. According to the Council in our country’s conditions there is no economic, legal or environmental rationale for the location of such environmentally risky installations in afforested areas.
