Polish auction system supporting renewable energy sources extended until 2027


On November 30, 2021 the European Commission issued a press release announcing the extension of the auction system until 2027. The RES auctions are the main support instrument for renewable energy producers in Poland. The decision in case number SA.64713 has not been published yet, however, the Ministry of Climate and Environment expects its announcement soon.

According to the European Commission the RES auctions are appropriate instruments supporting the generation of energy from renewable sources, facilitating Poland's fulfilment of its climate commitments while complying with EU state aid law.

The current support scheme would have remained binding until the end of 2021. Thanks to the extension, auctions may be organised in subsequent years until 2027, inclusive. We expect greater transparency of the scheme due to the new requirement to publish estimated auction budgets in advance for subsequent years, as opposed to the current rule of publishing budgets only one year in advance and just for the next auction.

Pursuant to preliminary estimates, the extension of the auction system will create about 9 GW of new RES generation capacity. The amount of granted support may even reach PLN 43.85 billion.

Link: Daily News 30 / 11 / 2021 (europa.eu)

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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