Next Tuesday the Council of Ministers is to discuss draft amendment to the so-called 10 H Act, which is to unblock onshore wind development. This is a strategic decision in the face of extraordinarily high electricity prices — onshore wind is the least expensive source of electricity that may bring the fastest reduction in electricity bills for Polish families. Research demonstrates that without wind energy, our electricity bills would have been substantially higher. An analysis prepared by Instytut Jagielloński demonstrates that after unblocking and launching new wind farm investments, Polish families, industry and the economy may save as much as PLN 14 billion on electricity bills.

Electricity prices are skyrocketing, and nothing but further increases are to be expected soon. Polish customers already suffered higher electricity bills, and the future does not look bright.

Could it be less? Yes, everything depends on the Council of Ministers, which on the next Tuesday will determine the fate of the so-called Distance Act, which in 2016 introduced the 10 H rule, bringing onshore wind development to a halt. Today, the government works on a draft that will once again unleash the development of the least expensive, green technology that will make Poland energy-independent and secure.

The new act assumes that municipalities and local communities, through local spatial development plans, will decide if wind farms will be allowed in their territory. Moreover, the new regulations are to ensure appropriate supervision over the process by municipal authorities and local communities as well as appropriate operational safety of wind farms, and to keep residents of municipalities where wind installations are to be located fully informed.

“By adopting the 10 H act, the government will enable Polish families and entrepreneurs to save PLN 14 billion. Therefore, it is no surprise that the entire wind industry, but also other industries, local governments and the community expect onshore wind development to be unblocked as soon as possible. It will not only increase our energy security and independence from Russian fuels, but also contribute to lower electricity bills. Today, electricity from wind is 5 times less expensive than from conventional fuels, and new onshore wind farms mean more green and inexpensive electricity and lower electricity bills,” said Janusz Gajowiecki, President of the Polish Wind Energy Association.

The analysis carried out by IJ — “Onshore wind and wholesale electricity prices on the spot market in Poland”[1] — demonstrates that production of electricity from onshore wind farms has a substantial impact on the decrease of average wholesale electricity prices in Poland. Data for January 2020–March 2022 clearly demonstrate that higher share of onshore wind farm in the satisfaction of domestic demand for electricity translates into lower spot market prices.

December 2021 was a month with the highest average prices in all 2021. At the same time, December 2021 demonstrated a strong correlation between onshore wind production and spot prices.  In the entire 2021 the average yearly spot electricity price amounted to 398 PLN/MWh. As of December 2021, onshore wind installed capacity in Poland reached 7 GW. Depending on the capacity level assumed in the analysis, a simulation of the impact of onshore wind on spot electricity prices in Poland demonstrates that with 0 GW of wind installed capacity in 2021, the simulated average yearly spot price would have been higher by approximately 163 PLN/MWh. In a reverse scenario — assuming double the actual capacity, i.e. 14 GW in 2021 — the simulated average yearly spot price would have been lower by approximately 57 PLN/MWh.

Benefits are just round the corner

Apart from bringing security, onshore wind development increases the pace of the Polish energy transition and brings a number of benefits for the economy and the community. A report by the Polish Wind Energy Association[2]demonstrates that, in the best development scenario, new wind farms will guarantee PLN 70–133 billion of GDP growth, PLN 490–935 million of additional revenue foe local governments, approximately PLN 80 billion of orders for products and services in the supply chain and from 51 to 97 thousand new jobs in the 2030 perspective.

“When the amendment will become effective and unblocks new investment, we could have from 6 to 10 GW of new onshore wind capacity by 2030. This would bring the country’s total to 18–20 GW. Considering the potential, within several years we could become completely independent from coal or gas imported from Russia. The key is onshore wind development. The technology would secure our energy independence,” said Janusz Gajowiecki, President of the Polish Wind Energy Association.

Increasing awareness of environmental benefits stemming from onshore wind development is no less important. Studies demonstrate that 85% of Polish citizens want further development of onshore wind farms — the source of inexpensive and clean electricity.

[1] http://psew.pl/wp-content/uploads/2022/05/prezentacja-LEW-1.pdf

[2] http://psew.pl/wp-content/uploads/2022/02/DIAGNOZA_E_BOOK-PL.pdf