For Poland, the Baltic has always been a window to the world. Today, it is also an opportunity for Poland to become independent from coal-based energy through the development of offshore wind energy in the Polish exclusive economic zone. This new industry could become the flywheel of the Polish energy transition, so necessary today.

Stable legal framework

Offshore wind energy is listed first in Pillar II of the Energy Policy of Poland until 2040 (Zero-Emission Energy System). Adopted by the Council of Ministers on 2 February 2021, the Energy Policy envisages that production from offshore wind farms will account for the largest share of electricity generated from RES. Installed capacity of these sources will reach 5.9 GW by 2030 and the potential is estimated at 11 GW by 2040.

The basic legal framework for the development of offshore wind farms is created by the act of 17 December 2020 on the promotion of electricity generation in offshore wind farms (the so-called Offshore Wind Act) and Act on the marine areas of the Republic of Poland and maritime administration of 21 March 1991 (substantially amended in 2021).

The first of these Acts sets the basis for a support system for offshore wind farms based on the Contracts for Difference (CfD) mechanism, which is widely used and well-known in Europe. The essence of this system is that the producer sells energy on the market and the difference between the market price and the guaranteed price (the negative balance) is compensated monthly by the state clearing agency. This means that the State, by guaranteeing the price, eliminates the risk associated with price fluctuations on the market (merchant risk). The support is granted for 25 years, setting a stable horizon for investors and financing banks, whose role in the energy transition process in Poland cannot be overestimated.

You can read the full commentary  in BalticWind.EU Quarterly Country Report Poland Q3 2022.