Reference prices for the first round of bids for renewable energies in Poland

01.10.2015

The Polish Ministry of Economic Affairs has published the draft of the reference price regulation. It specifies the maximum price for electrical energy generated from renewable energy sources offered at the auction.

In accordance with the corresponding provisions of the Renewable Energy Act (EEG-PL), the first round of bidding will take place by the end of April. Several separate auctions will be held during the first round of bidding. The two regulations regarding the amount of electric power that the government intends to purchase during the first round have already been enacted. It is now clear that the total amount of energy included in the auction will be 50,449,950 MWh for power plants with a rated power output of more than 1 MW. Of that total, 30,907,350 MWh of electricity generated in the future will be purchased from volatile renewable energy plants. According to the Ministry of Economic Affairs, the amount of energy that will be tendered for small plants up to 1 MW will be 12,612,488 MWh. In both cases, it is the total amount of energy that all auction winners will supply over a period of 15 years.

The ministry has now published the draft of the reference price regulation. The reference prices specified therein are shown in Figures 1-3.


Figure 1: New renewable energy plants ≤ 1 MW


Figure 2: New renewable energy plants > 1MW


Figure 3: New renewable energy plants, regardless of the rated power

On the one hand, the reference prices look good when compared to the current level of funding. The operator of a renewable energy system currently receives just 6.63 € cents / kWh if it sells the green certificates on the energy exchange (fixed energy purchase price in 2015: 163.58 PLN / MWh + price of green certificates 115.25 PLN / MWh; prices on 17.09.2015 – fixing, source: tge.pl; exchange rate € / PLN: 1 € = 4.2 PLN). On the other hand, the reference prices are the maximum achievable prices. It remains to be seen exactly what funding will look like.

In addition, it should be noted that this is still just a draft of the regulation, and it is currently still in the phase of public consultations. It is therefore possible that the reference prices may be subject to (small) corrections. The Ministry of Economic Affairs has until the end of the year to enact a final regulation.

Piotr Mrowiec, LL.M.
radca prawny / lawyer (PL)

Associate Partner, Rödl & Partner

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