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Offshore Act Reviewed: Act unanimously approved; projects line up for first phase CfD

By: Rosie Haworth 19/01/2021 4C Offshore

Windfarms

On 13th January, Poland's Offshore Act was unanimously voted in by the Senate of the Republic of Poland and now awaits the President's signature. Five projects are likely to enter the first phase CfD.

Since its initial release in January 2020, 4C Offshore has closely followed the development of Poland's landmark Act dedicated to offshore wind. Following approval by the Sejm on 17th December, the Act was passed to the Senate. Senate committees (Special Committee for Climate, National Economy and Innovation Committee and the Environment Commission) agreed to the Act without need for amendments, and from the 12th to 13th January the Senate considered the Act culminating in a unanimous approval. The Act now requires the President's signature and is expected to come into force in February.

The Act provides for a two-phase contract for difference (CfD) model. In the first phase, up to 5.9 GW of capacity will be awarded a uniform, non-competitive CfD, for which developers must apply by 31st March for award in June. In the second stage, developers will compete in CfD auctions where 2.5 GW is available in 2025 and 2027.

Entry requirements to the first phase have been reduced most notably in relation to required permits and licensing. Developers must have in place:

-Permit to erect artificial islands, structures, or devices in the EEZ (PSZW)
-Grid connection agreement or connection conditions with the TSO, PSE

In addition, developers must also provide:
-Construction and financing schedule
-Supply chain plan
-Demonstration that without CfD the project could not be realised
-Confirmation of establishment of a security (deposit/bank guarantee) for the value of PLN 60 per 1 kW
-Single line wiring diagram of the wind farm and transmission

As shown in the diagram, there are eight projects capable of entering the first phase in terms of project permits, but those shown in bold are the most advanced, and most likely to compete (Baltyk II & III counted as one). In the past month, three projects signed grid connection agreements (FEW Baltic II, Baltica 2, Baltic Power); this is a major step in development even though no longer a requirement for entry to the first phase CfD scheme.

This story was first reported exclusively for 4C Offshore subscribers. For more information, click here

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Offshore Act Reviewed: Act unanimously approved; projects line up for first phase CfD

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