Poland has allocated 3.4 gigawatts (GW) of capacity in its inaugural competitive offshore wind auction, according to the energy regulator URE. This move is a significant boost for the renewable energy sector, especially following challenges faced in neighboring markets. The auction served as a test of investor confidence in offshore wind, particularly after setbacks in the U.S. and failed bids in Denmark, Germany, and the Netherlands.
Contracts were awarded for 25 years at prices between 476.88 and 492.32 zlotys ($133.09) per megawatt-hour, slightly below the regulator’s maximum limits. State-controlled utility PGE secured a contract for 975 MW at 489 zlotys, while Orlen won 900 MW at 476.88 zlotys. Additionally, a consortium of Polenergia and Norway’s Equinor was awarded 1.56 GW at 492.32 zlotys.
Offshore wind is crucial for Poland as it transitions away from coal and seeks energy independence amid geopolitical concerns. The auction winners will benefit from a contract-for-difference (CfD) scheme, ensuring stable electricity prices. Poland plans to conduct similar auctions every two years until 2031, with projects required to start delivering electricity within seven years.
