Poland publishes draft Offshore Wind Act

In: Windfarms

The Polish government has issued its draft act for the promotion of offshore wind electricity generation which looks to pave the way for development of the technology in the Baltic Sea. Poland has opted to proceed via a two stage Contract for Difference (CfD) model which is similar to that used in the UK.

In the first stage, which is expected to take place from 2020-2022, the most advanced projects such as those with with connection agreements in place will be issued support by the Energy Regulatory Office. This is planned for a total of 4.6 GW capacity. The second stage, planned for 2023, will offer CfD via competitive auction in terms of electricity price.

Although there are currently no offshore wind farms operating in Poland, over 5 GW is planned to be underway by 2030. Furthermore, a number of developers have recently positioned themselves in the Polish offshore wind market.

Just last month Equinor completed the acquisition of a 50% interest in the
Bałtyk I offshore wind development project off the coast of Poland. The company now has an interest in three Bałtyk offshore wind development projects, Bałtyk III, Bałtyk II and Bałtyk I, alongside Polish energy group Polenergia.

RWE Renewables has acquired a pipeline of up to four offshore wind projects in around the Slupsk bank area in the central Polish Baltic Sea. The projects have a total combined capacity of more than 1.5 GW and are in different development stages.

PGE Polska Grupa Energetyczna S.A. and Ørsted recently commenced discussions regarding the sale of a 50% stake in two offshore wind farm projects in the Baltic Sea, with a total capacity of up to 2.5 GW. The talks also concern the cooperation terms for their development.

Furthermore, the Polish Ministry of Investment and Development and American conglomerate General Electric recently signed an agreement to further cooperate on investment in renewable energy. The document extends the existing strategic cooperation, which both parties undertook in the Letter of Intent signed on January 26, 2017 between the Ministry of Development and GE.

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