Poland has launched its first auction for offshore wind projects on Wednesday. The offer marks a step forward for the country at a time when several other European markets are experiencing planned offshore wind auctions being postponed or canceled. The auction includes a total of about 3.5 gigawatts of offshore wind capacity. Among the participants are Polenergia in cooperation with Norway's Equinor and state-owned energy companies PGE and Orlen. This is reported by Bloomberg News.
According to the Polish wind energy association PSEW's assessments, the expansion of offshore wind could lead to investments of up to 869 billion zloty, equivalent to around 1540 billion kroner. In the longer term, the expansion is expected to significantly pressure electricity prices. The organization also estimates that Poland has the potential to reach 18 gigawatts of offshore wind capacity by 2040 and more than 30 gigawatts thereafter.
The reasons why several tenders elsewhere in Europe have been dropped include higher construction costs, bottlenecks in supply chains and uncertainty about future revenues. In Poland, projects are instead competing for so-called contracts for difference, which provide financial support if electricity prices fall below a set level. The maximum bids in the auction are between 486 and 512 zlotys per megawatt-hour, which is above the current market level. The results of the auction are expected to be published before the end of the year.
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