Poland Floats Offshore Wind Electricity Price Cap

Poland plans to cap the maximum price of electricity produced at offshore wind farms selected in this year’s Contracts for Difference (CfD) rounds at PLN 301.5/MWh (around EUR 67.08/MWh).

The price cap was introduced in a draft regulation submitted by Poland’s Ministry of Climate and Environment.

The limit set out in the draft regulation is the basis for the settlement of the right to cover the negative balance, the Ministry said. The draft regulation will now be subject to a seven-day comment period.

Earlier this month, Poland signed into law the Offshore Act which regulates the development of offshore wind farms in the Polish Baltic Sea.

The legislation allows for 10.9 GW of offshore wind capacity to be either operational or under development by 2027.

5.9 GW of capacity will be offered via CfDs by the end of June 2021, with developers having until 31 March to submit their bids.

This capacity will be allocated to projects which are at the most advanced stages of development. Some of these projects could be operational by 2025.

The CfDs will be granted by way of an administrative decision by the President of the Energy Regulatory Office (URE).

The second phase of development will include two auctions, the first in 2025 and the second in 2027, both for 2.5 GW of capacity.

Photo: Ørsted/Illustration