In 2022 wind energy will be needed more than ever

by dbereza

In 2022 wind energy will be needed more than ever

by dbereza

by dbereza

The passing year is full of success for the wind energy industry. Offshore wind farm projects in the Baltic Sea opened a new chapter for the Polish economy. Some other victories of our industry include auctions, Sector Deal or the government’s hydrogen strategy. But there’s a long way ahead — we strive to see the long-awaited liberalisation of the 10 h rule that will unleash the power of onshore wind. This is the only way to avoid further increase of electricity prices.

End of a year is a good time to recapitulate the achievements of the wind energy industry in Poland and its current position. I must admit that the year was very successful for offshore wind development in Poland. The first Offshore Act, lighting a green light for huge investments in the Baltic Sea, totalling 11 GW, that will contribute to the achievement of climate neutrality declared by Poland and mitigation of power shortage risk, has become effective. Currently, there are seven Phase I projects, implemented by five entities, that received aid — and this is related to the commitment to produce electricity and feed it into the grid at a strictly specified date.

The offshore wind Sector Deal, giving new prospects and opportunities to the new branch of the Polish economy, is crucial for the first offshore wind farms. The declaration of cooperation between the government and business, signed by approximately 200 entities, lays down various offshore wind development goals, describes ambitions related to the share of local supply chain as discusses employment or personnel education issues. PWEA actively promoted the Deal and we are happy we succeeded.

Auction for the sale of electricity from renewable energy sources, including wind, were held in May, June and December 2021. The results of the auctions demonstrated that wind continues to be far ahead of its competition, with a price of approximately 250 PLN/MWh, compared to the current prices of electricity from other sources. Furthermore, the market position of wind energy manifests in the large number of submitted bids compared to other technologies. Due to the achieved results, the European Commission agreed to extend the support scheme for produces of RES electricity to 2027, what will enable holding of subsequent auctions and secure safe and predictable environment for the industry’s growth.

Continuation of the green certificates policy cannot be overlooked. Ministry of Climate and Environment specified the share of green certificates at 18.5%. The level is to ensure stable operation of the RES market for producers participating in the certificates of origin scheme and contribute to the decrease of its costs for final customers, in particular energy-intensive ones.

Moreover, adoption of the hydrogen strategy, which provides for support programmes for an economy based exclusively on low- and zero-emission hydrogen, i.e. from renewable sources, is also important for the RES market in Poland. As the “Green hydrogen from RES in Poland” report demonstrates, the annual demand for hydrogen in Poland in 2040 will exceed 100 TWh, and fulfilment of such ambitions requires more than 60 GW of RES.

Notwithstanding our achievements, we will not relax. We face a long way and ambitious plans. As an industry, we are part of energy transition, therefore we intend to further pursue grid measures, including direct lines and cable pooling, to combine wind and PV. However, our main 2022 goal is the long-awaited liberalisation of the 10 h rule, which will unleash onshore wind. We have already reached a milestone — a positive opinion of the Joint Committee of the Government and Local Governments. We hope that the act will soon be submitted to the Standing Committee of the Council of Ministers and become effective as soon as possible. Rapid wind energy development is the only measure that can allow us to avoid further increases in electricity prices.

We know what needs to be changed and developed specific proposals for the government how to achieve this — and this is what we will focus on this year.

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