Poland's Ministry of Climate and Environment (MKiS) has proposed an amendment to the Offshore Wind Act, which would introduce separate maximum prices for different offshore wind farm areas, instead of a single price for all areas. The aim of this change is to more accurately reflect the diverse geophysical conditions and varying costs associated with the construction and operation of offshore wind projects across the country.
Under the current framework, a single maximum price per MWh is set for all offshore wind auctions, regardless of the area's specific characteristics. The ministry argues that this uniform pricing system may discourage projects in more challenging areas from participating in auctions, as it doesn't account for the higher costs of such sites. By setting differentiated maximum prices, the government hopes to encourage greater participation and ensure a broader range of projects can compete in the auctions.
The ministry further pointed out that having a single maximum price could result in less cost-intensive projects from more favorable areas submitting higher price bids, thus receiving unjustified financial support. The revised approach would allow for a more equitable distribution of support, while minimizing the financial burden on end users.
The proposed changes are expected to be adopted in the fourth quarter of 2024. The revision aims to strike a balance between promoting project development and ensuring that support is targeted at projects with reasonable costs, potentially fostering a more competitive auction environment.
