The President of the Energy Regulatory Office (URE) in Poland has published the highly anticipated Auction Rules for the right to cover the negative balance for electricity generated in offshore wind farms. This marks a crucial step in preparing for the first auction for this technology, scheduled for 2025, though the date and regulations may still be subject to change.

Two Phases of Support for Polish Offshore Wind

The Act of December 2020 on promoting electricity generation in offshore wind farms introduced a two-stage support system. In the first phase, until June 30, 2021, support was granted upon a producer’s request via an administrative decision from the URE President. This process awarded the right to cover the negative balance to seven offshore wind farm projects with a total installed capacity not exceeding 5.9 GW. The second phase transitions to an auction system, which is already standard for other renewable energy sources. Under this mechanism, the URE President will organize competitive tenders to select producers. The first auction for offshore wind farms in Poland is planned for 2025. The maximum total capacity for which the right to cover the negative balance can be granted in that year is 4 GW.

What the Auction Rules Include

The Auction Rules, published in the URE’s Public Information Bulletin, are a key document that clarifies the principles of the upcoming process. They primarily define:

  • The detailed organization of the auction and the method of submitting offers.
  • The course and method of auction resolution.
  • Technical requirements for accessing the online auction platform.
  • How to ensure the security and correctness of the auction.
  • Conditions for suspending access to the online auction platform.
  • Detailed technical conditions for handling ownership changes within the online auction platform system, related to the URE President’s consent procedure for the transfer of the right to cover the negative balance and the obligations resulting from winning the auction.

Additionally, the document includes definitions of key terms, detailed information regarding the Online Auction Platform (including rules for signing, registration, and activation of a producer’s account), and issues related to establishing financial security for fulfilling obligations arising from winning the auction. The Rules were published after receiving a positive opinion from the Minister of Climate and Environment.

Potential Changes Before December Auction

According to regulations, the URE President is obligated to establish the Auction Rules for offshore wind farms no later than six months before the auction’s start date. However, due to the ongoing legislative process for amending the Act on promoting electricity generation in offshore wind farms (UD 162), it’s possible that these Rules will require an update before this year’s auction, which is planned for December 2025. This means the market will need to closely monitor further legislative changes that could impact the final shape and conditions of the auction.

Source: URE