Budget for RES auctions in Poland in 2021

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  1. A Council of Ministers regulation on the maximum volume and value of electric energy from renewable energy sources that may be sold in auctions in 2021 (“Budget Regulation”) was published on December 28, 2020, in the Journal of Laws. The Budget Regulation includes the breakdown of funds and quotas into individual auction budgets. The Budget Regulation took effect on January 11, 2021.
  2. The government’s assumption is that the proposed budgets should allow for the deployment of small PV projects with a total capacity of up to 1000 MW and large PV projects with a total capacity of up to 800 MW. Some 600 MW of large wind projects are also expected to secure support in the 2021 auction.
  3. The government intends to allocate funds to ground-breaking auctions for hybrid installations combining different generation technologies in one facility. The hybrid auctions are expected to take place only after legislative changes are made that set out the eligibility conditions for hybrid installations, with the expected introduction of an energy storage solution as a required component.
  4. The government’s expectations in terms of RES deployment resulting from the auction in 2021 are as follows:
    Energy source Small Large
    Wind - 600 MW
    Solar energy 1000 MW 800 MW
    Hydropower 5 MW 20 MW
    Agricultural biogas - 20 MW
    Biogas: landfill and sewage treatment 5 MW -
    Biomass: dedicated biomass combustion - 100 MW
    Hybrid installations 5 MW 15 MW
  5. Below we present the budgets and volumes for particular installations in 2020 and 2021. According to the RES Act there are five “baskets” for installations, sorted by, among others, technology criteria. Additionally, separate auctions are organized for installations that started generating electricity before June 30, 2016, and wish to migrate to the auction system (“Existing Installations”) and installations which will start generating electricity after the auction (“New Installations”). Furthermore, projects are also distinguished between installations with total installed capacity of up to 1 MW (“Small Installations”) and installations with total installed capacity exceeding 1 MW (“Large Installations”).

New installations

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Basket 2020 2021
Small
Installations
Large
Installations
Small
Installations
Large
Installations
Biogas other than agricultural, hybrid systems,
waste incineration plants, dedicated biomass and
multi-fuel co-firing installations
375 000 MWh,
166 875 000 PLN
10 950 000 MWh,
5 182 500 000 PLN
225 000 MWh,
106 875 000 PLN
10 680 000 MWh,
5 249 400 000 PLN
Hydropower, bioliquids,
geothermal energy,
offshore wind energy1
540 000 MWh,
270 000 000 PLN
1 080 000 MWh,
518 400 000 PLN
270 000 MWh,
151 200 000 PLN
1 080 000 MWh,
577 800 000 PLN
Agricultural biogas 0 1 800 000 MWh,
1 152 000 000 PLN
0 1 800 000 MWh,
1 206 000 000 PLN
Onshore wind energy

Solar radiation energy

11 7600 000 MWh, 46 290 000 MWh, 14 700 000 MWh 38 760 000 MWh,
4 527 600 000 PLN 14 015 850 000 PLN 5 292 000 000 PLN 10 748 400 000 PLN
Hybrid RES installation 0 0 394 200 MWh,
242 433 000 PLN
1 182 600 MWh,
703 647 000 PLN
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Existing installations

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Basket 2020 2021
Small Installations Large Installations Small Installations Large Installations
Biogas other than agricultural, hybrid systems,
waste incineration plants, dedicated biomass and
multi-fuel co-firing installations
0 0 0 0
Hydropower, bioliquids,
geothermal energy,
offshore wind energy
0 0 0 0
Agricultural biogas 0 2 500 000 MWh,
1 600 000 000 PLN
0 500 000 MWh,
335 000 000 PLN
Onshore wind energy

Solar radiation energy

0 0 0 0
Hybrid RES installation 0 0 0 0
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1 While technically eligible to participate in these auctions, offshore wind is expected to have a separate, dedicated support scheme.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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