Poland

The PPA relates to a 5 MW solar project that the renewable energy unit of local utility PGE is developing in south-central Poland. The facility, which is expected to come online in mid-2022, will sell power to two big chemical companies operating in the region.

Only 36% of the 360 MW of capacity allocated in Poland’s first two solar auctions is grid connected, according to research institute the IEO. With the completion deadline for the first exercise having expired last year, there is also little time left for developers selected in the second auction to finalize projects. In three auctions held by the Polish government, a combined capacity of 870 MW has been allocated.

The auction’s final lowest price was higher than that of the two previous auctions of the same kind, which were held in 2017 and 2016, respectively. Overall, 8,169 TWh of power were sold for PLN 2.2 billion (US$579.8 million).

Polish power company ZE PAK SA has an 8.5% share of the country’s electricity market. Total investment in the solar project is estimated at approximately PLN200 million ($52.5 million).

Unlike similar auctions in France and Germany recently, in which only PV projects were selected, in Poland all the contracted power went to wind. The exercise drew prices from $41.98/MWh to $57.73/MWh, for an average $52.19/MWh.

Project was developed by Chinese storage system provider and panel manker BYD. The system is linked to a 1 MW solar plant built by the same company.

Polish research institute IEO released a new analysis showing increasing power prices in the Eastern European country, due to the current energy policy, which still strongly relies on coal power. Replacing coal with solar power, it argues, would likely result in decreasing power prices.

A simulation of Poland’s two upcoming mixed wind/solar auctions held by the Polish wind energy association has shown that wind may prove more competitive than solar, especially in the auction for projects over 1 MW. The real auctions are expected to be launched between November and December.

With around 300 MW of installed PV power at the end of May, Poland still needs volume to become a major European PV market. More capacity is expected to come online over the next years, however, as a result of the auction mechanism for renewables. Around 360 MW was allocated by the two auctions held by the Polish government, although only 27 MW of this is currently online.

The utility’s renewable energy unit PGE EO has announced the construction of a PV laboratory and a solar module field test in Siedlce. The move is part of its plan to invest in solar parks up to 1 MW under Poland’s auction mechanism.