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European Commission extends Polish renewable energy aid scheme

4C Offshore | Tom Russell
By: Tom Russell 01/12/2021 European Commission
The European Commission has approved, under EU State aid rules, the prolongation of an existing scheme to support electricity production from renewable sources in Poland.

The measure was initially approved in 2017, with a budget of approximately €9.4 billion (PLN 40 billion), and was set to expire on 30 June 2021. On 17 December 2020 (SA.59015) the Commission approved an extension of the duration by six months, until end 2021.

The Commission has now approved the prolongation of the scheme for the period 2022-2027. Aid is granted in the form of a variable premium on top of the market price, calculated as the difference between bidding price and the wholesale electricity price.

The Commission concluded that the prolonged measure remain in line with EU State aid rules, as it will continue to contribute to increase the share of renewable energy in Poland and reduce greenhouse gas emission, in line with the European Green Deal objectives, and without unduly distorting competition in the Single Market.

It follows
news earlier this year that the European Commission approved, under EU State aid rules, a Polish scheme to support offshore wind technology. The measure will help Poland reach its renewable energy targets.

Poland is progressing the development of offshore wind under the its Offshore Act, which regulates the method of obtaining public support by investors interested in building offshore wind farms in the Polish exclusive economic zone of the Baltic Sea. Under the Act up, to 5.9 GW  of offshore has already been allocated CfDs.

A 2.5 GW CfD auction is now expected in 2025 and 2027. Projects will have a 7-year award-to-generation deadline, meaning 10.9 GW generating power by 2034. The government plans to launch further support phases in 2025 and 2027, both 2.5 GW, leading to 11 GW by 2040.
As offshore wind is taking shape in Poland, more industry players are taking an interest.


For more information on offshore wind farms worldwide, click here.

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