Poland Sets Maximum Price for Offshore Wind Electricity

Poland’s Ministry of Climate and Environment has set a maximum price of PLN 319.6 (EUR 67.93) for a megawatt-hour of electricity produced at offshore wind farms selected in this year’s Contracts for Difference (CfD) rounds.

The price has been slightly raised compared to the initially proposed cap of PLN 301.5/MWh following public consultations and a consensus conference.

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The new cap takes into account the investment and operating costs for an offshore wind farm situated 55 kilometres off the coast. In addition, it takes into account the use of fixed prices for 2021, higher balancing costs, fees for the extension of the location permit, and the property tax on land infrastructure, the ministry said.

The price cap is the basis for the settlement of the right to cover the negative balance in the first phase of the CfD support system. The price may be awarded by the decision of the President of the Regulatory Office Energy for the first projects implemented in the Polish exclusive economic zone of the Baltic Sea.

In February, 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. These projects are expected to be operational by 2030.

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