WIND ENERGY FOR POLAND €22.5 BLN
ENERDATA - 25 May 2021 - The European Commission has approved Poland's €22.5bn support scheme for offshore wind, considering that it is line with EU state aid rules and will help the country meet its renewable energy targets. In January 2021, the Senate passed the offshore wind act, which governs the method of obtaining state support for developers interested in building offshore wind projects in the country. The new regulation introduces a bilateral two-sides contract for difference (CfD) in Poland, similar to the UK's CfD scheme, which will cover the difference between the market price of energy and the price enabling producers to cover the offshore wind production cost. Under this model, offshore wind power producers will receive a premium on top of market prices when the market price is below the reference price; when the market price is above the reference price, the producers will have to pay the difference to the States. In a first phase - until 2025 - the reference price for offshore wind projects will be set at PLN 319.6/MWh (€71.82/MWh). After 2025, the reference price will be set through open and competitive auctions, based on the respective bids. The scheme has a maximum budget of €22.5bn and will run until 2030.
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