Low bids of €36.53/MWh in Polish tender -- updated

POLAND: Prices ranged between PLN 157.80/MWh (€36.53/MWh) and PLN 216.99/MWh (€50.23/MWh) in Poland's onshore wind auction.

Poland's new wind energy contracts range from €36.53 to €50.23MWh (pic credit: Invenergy)

In total, 23 developers entered 31 successful bids, with an average price of PLN 196.16/MWh, according to auction supervisor the Energy Regulatory Office (URE).

Successful projects must be built within 30 months of the tender, which is now May 2021.

Winners included French utility-developer E.on, Polish developer Potegowo Winergy, state-controlled energy group PGE and German developer PNE. 

The URE did not include the names, capacities or locations of any winning projects in its announcement, but developers have given some further details of their successful bids.

German developer Innogy has announced it was successful with two projects with a combined capacity of 85.2MW.

It plans an investment decision in early 2019 for the 33MW Zukowice project in Lower Silesia in the south-west of Poland and the 55.2MW Dolice wind farm in West Pomerania in the north-west.

Portugal's EDPR also secured a 15-year contract for its 38MW Korsze wind farm in Warmian-Masurian province in the north-east of the country. It expects to start installation in 2020, the developer stated.

Polish power group Polska Grupa Energetyczna (PGE) will build a 97.17MW cluster of three wind farms — Starza, Rybice and Karnice II — in West Pomerania province, having secured capacity at auction.

PNE announced it has secured contracts for two projects in the auction: the 42MW Barwice and 132MW Jasna projects, both located in northern Poland.

They will be taken forward by PNE's WKN subsidiary, the firm added. 

Compatriot Wpd has also secured 100MW of licences across four projects: the 42.5MW Jarocin Kozmin, 45MW Slupca Kolaczkowo, 5MW Jarocin Wschód, and 10MW Krotoszyn will be installed in central Poland.

Meanwhile, only 55% of the budget allocated to the auction, according the Polish Wind Energy Association (PWEA), which estimates that the PLN 8 billion (€1.85 billion) the ministry of energy can carry forward could fund a further 850MW of capacity.

PWEA president Janusz Gajowiecki called for "another large auction" to be held next year.

Find out more about the world's latest auctions using Windpower Monthly's Tender Watch 

Prices in the November 2018 auction could have been "lower had it been possible to build the latest turbines instead of the older ones, compliant with the environment decisions issued several years ago", he said.

WindEurope CEO Giles Dickson, meanwhile, described the tender’s prices as "extremely competitive" and pointed out that they were lower than in recent auctions in Germany and France.

"Poland has relatively high electricity prices, but this will help to put downward pressure on prices," he said.

"Onshore wind makes perfect economic sense for Poland. It’s cheaper than new coal or nuclear."

Dickson added that Poland should include detailed plans for onshore and offshore wind in its national energy and climate plan for 2030 and fix its strict setback laws.

Prior to the tender, which had a deadline of 5 November, the Polish transmission system operator estimated about 3GW of onshore wind projects were eligible to participate at auction.

It is unclear how much capacity was awarded in the tender and, now, how much is left to compete in any future auctions.

Poland’s wind industry had faced difficult years prior to an amendment to its Renewable Energy Sources Act (RES Act) this summer.

The update paved the way for auctions to take place and removed taxes paid on the entire turbine at new and already-permitted wind farms, cutting costs for investors.

However, rules stipulating that wind farms must be located ten times the heights of the turbines from nearby communities remain in place.

Just 41MW of new capacity was added in 2017 — down from 1,266MW in 2015 and 682MW in 2016.

Find out more about the world's latest auctions using Windpower Monthly's Tender Watch