PWEA for increasing wind farm allocation in 2019

by dbereza

PWEA for increasing wind farm allocation in 2019

by dbereza

by dbereza

Polish Wind Energy Association (PWEA) recommends the purchase in 2019 of onshore wind volume higher than presented in the draft Minister for Energy Regulation.

In 2019 Ministry of Energy intends to contract 67.5 TWh of electricity under an auction bundle for, among others, onshore wind. The allocated funds amount to PLN 23.45 billion.

“The electricity volume proposed for purchase in this bundle translates into potential support for approximately 1.5 GW of wind capacity. The market holds a total of 3 GW of ready-to-build projects. Therefore, we recommend increasing the next year’s contracting to approximately 2.5 GW,” proposed Janusz Gajowiecki, PWEA President.

Leaving the contracted volume at the proposed level will squander away the potential that has been developed for years. Investors have already spent PLN 2-3 billion to develop that potential.

Although building permits – extended by the amendment to the Renewable Energy Sources Act – expire only in 2021, interconnection agreements for projects not holding governmental support expire much sooner, on 19 May 2019.

“Therefore, both the volume in the wind bundle and holding the auction no later by the end of the first quarter of 2019 are crucial,” Gajowiecki argues.

Such an approach will translate into the highest wind industry’s contribution to the achievement of the 2020 RES target by Poland.

In a separate regulation, Ministry of Energy proposed 285 PLN/MWh as the maximum price for the PV/wind bundle with installations above 1 MW. PWEA deems the price adequate.

“Today, onshore wind produces electricity at a price competitive with market prices, which was apparent in the results of the November 2018 auction. The technology costs are continuously decreasing. Had a stable legislative framework been in place, offshore wind could develop even without governmental support,” Gajowiecki explained.

Nonetheless, the reference price proposed for 2019 for large wind farms is substantially lower than the 2018 maximum price, when it amounted to 350 PLN/MWh, similarly to 2017. Year before it amounted to 385 PLN/MWh. This means that since the support model in Poland was shifted from certificate-based to auction-based, the maximum price for the technology decreased by almost 30 percent.

Regulation on the maximum amount and value of electricity from renewable energy sources in 2019 (click here)

Regulation on the reference prices of electricity from RES in 2019 (click here)