Lobby says proposed price for Polish offshore Wind auctions is too low

The wind lobby in Poland said that the proposed price of wind power for new Baltic Sea projects was too low, and could undermine development and government goals.

The climate ministry of Poland proposed earlier this week a maximum price for auctions starting in 2025 at 471.83 Zlotys (122.71 USD) per Megawatt Hour (MWh).

Over the last few years, the wind industry has struggled with rising costs and disruptions in the supply chain. This has led to some developers pulling out of projects or renegotiating terms.

The price proposed may exclude certain projects, said Janusz Gjowiecki. He is the head of the Polish Wind Energy Association.

PSEW says that the proposed price is based upon overly optimistic assumptions about investment costs, and that costs associated with balancing demand and supply, grid bottlenecks, and negative electricity rates are understated.

PSEW stated that it is important, as Britain's example has shown, for the price to reflect market conditions realistically and enable the financial feasibility of future investments.

Offshore wind developers refused to bid in Britain's renewable electricity auction for 2023 because they felt the price offered did not reflect the rising costs.

Poland wants to reduce its dependence on coal through offshore wind and nuclear energy.

(source: Reuters)