Poland has taken a significant step in its energy transition, awarding 3.4 gigawatts (GW) of capacity across three offshore wind projects in its first-ever competitive auction. The Energy Regulatory Office announced the results, revealing that four bids were submitted, with three ultimately selected. The auction rules stipulated that the total capacity of winning bids could not exceed 90% of the 4GW up for grabs, a threshold the results comfortably met.
The victorious projects include Orlen’s 900MW Baltic East, PGE Polska Grupa Energetyczna’s 975MW Baltica 9, and Polenergia-Equinor’s 1560MW Baltyk 1. All three schemes are slated to commence operations by the end of 2032. As part of their winning bids, the developers secured 25-year two-sided Contracts for Difference (CfDs) at strike prices ranging from €113 to €117 per megawatt-hour.
Initial analysis from Rystad Energy suggests these strike prices are approximately 5-10% higher than the average electricity prices in Poland during the third quarter of this year. This pricing structure is expected to enable the projects to generate “double-digit” returns, according to Rystad.
Energy Regulatory Office President Renata Mroczek hailed the auction as a milestone in Poland’s energy transformation. “The first auction for offshore wind in Poland is an event of significant importance on the path of energy transformation of our country,” she stated. “The fact that it was successfully carried out is a reason for satisfaction for me.”
This development is likely to accelerate Poland’s offshore wind sector, attracting further investment and fostering technological advancements. The successful auction demonstrates the country’s commitment to diversifying its energy mix and reducing reliance on conventional power sources. As these projects progress, they could serve as blueprints for future tenders, shaping the trajectory of Poland’s renewable energy landscape and influencing regional energy markets. The focus will now shift to ensuring timely project execution and integrating these substantial capacities into the national grid, which will be crucial for meeting Poland’s climate goals and energy security objectives.