Poland publishes draft offshore wind price cap
Poland's Ministry of Climate
and Environment recently issued a draft regulation of the maximum
price for electricity generated in an offshore wind farm and fed into the
grid. According to the draft, the maximum price for electricity generated
in the offshore wind farm and fed into the grid is PLN 301.5 / MWh.
A public consultation has been opened and responses are due until next
Tuesday (23 February).
It follows news last
month that Poland's draft 'Offshore Wind Act' was unanimously adopted by
the Senate, the higher chamber of Polish Parliament, without any amendments.
The new act details a new subsidy scheme, and simplifies administrative
and legal procedures to encourage investors and accelerate the industry
The new legislation is awaiting signature from the President of Poland
for his signature.
The Offshore Act 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. Public aid will be granted by way of an administrative
decision by the President of the Energy Regulatory Office (ERO).
Poland has opted to proceed via a two stage Contract for Difference (CfD)
model which is similar to that used in the UK. The ministry expects that
the pool of funds will support 5.9 GW of offshore wind capacity. The first
wind farms launched under this stage could start producing energy as early
as 2025.
The submission of applications should be completed no later than March
31, 2021, and the decision of the ERO granting the right to support should
be issued by the end of the first half of 2021. Next, individual notifications
of the granted state aid will be made to the European Commission and the
final verification of the level of support by the ERO.
The government plans to launch further support phases in 2025 and 2027,
both 2.5 GW, leading to 11 GW by 2040.
