Wind energy in Poland. Report 2023. Special focus: cPPAs – status quo and prospects for development

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“Wind Energy in Poland” is a comprehensive and up-to-date study by experts from the Polish Wind Energy Association (PSEW), the consulting firm TPA Poland/Baker Tilly TPA and the law firm DWF, prepared in a bilingual (Polish-English) format. 

This year's edition of the report is unique for several reasons. First of all, it is already the 10th edition, and like every subsequent release, this year’s edition is also a record-breaker in terms of content of almost 250 pages. Second, the war in Ukraine and its effects on the European energy and fuel market have strongly increased the demand for renewable energy and the dynamics of RES investments, which translates, among other things, into wind power industry in Poland, both onshore and offshore. Our report discusses both of these subsectors in detail. Third, there have been a great number of major changes in the legal and regulatory environment since the last year’s edition of the report, some of which are likely to accelerate the industry’s development in the coming years. 

Wind has the power... 

Wind energy is, and in our conditions will long remain, one of the key pillars of the energy transition and decarbonization. Its growing share in the generation mix significantly increases energy security, which, as a result of Russia’s assault on Ukraine, has once and for all ceased to be an abstract concept in this part of the world. A power system based on distributed, zero-emission and foreign fuel-independent sources is incomparably more resilient to a range of threats, especially geopolitical ones. Onshore and offshore wind power is also an extremely modern, efficient and long-term engine for the entire economy. Multiplier effects in the form of local supply chains, Polish entrepreneurs joining global supply chains for the sector, as well as professional development opportunities for thousands of employees in the field of cutting-edge technology create value that cannot be overestimated from the point of view of the economy and society. The beneficial effects of the sector’s development will be passed on to future generations – also long after the major generating facilities have been built. 

…and legal barriers are finally starting to erode… 

For the development of the wind energy sector, 2023 has brought many changes, including positive ones. This has been in response to the change in public and political sentiment around wind power, among other things. Energy transition and decarbonization are no longer the distant vision of progressive Western societies. The multifaceted impact of these processes on the Polish economy has finally been recognized and is now translating into a gradual release of investment potential. In the offshore sector, we can speak of significant, consistent and effective regulatory support for its seamless development. The onshore sector saw the groundbreaking replacement of the 10h rule, in effect since 2016, with a distance standard of 700 meters. After 7 years of deadlock, the onshore wind industry can now complete the projects that are covered by Zoning Plans and meet liberalized distance criteria, In turn, projects that are completely new can now be developed in a much broader scope and with the use of the state-of-the-art technology. 

…although other limitations remain 

The report authors also emphasize that onshore wind energy, despite its huge economic advantage over other power generation technologies, has not escaped further threats in recent times. The Act of October 27, 2022 on emergency measures to limit electricity prices and support certain consumers in 2023 introduced solutions to deprive some energy producers of the profits they may have made as a result of the high energy prices recorded since 2022 in Poland and Europe. RES producers selling energy covered by auction contracts were to some extent excluded from the regulation.  

With a fixed and, in principle, competitive auctioned price for a 15-year supply period, they do not participate in the benefits of price increases on the free market. Unfortunately, the lawmakers failed to recognize that a similar situation is faced by producers who have built their plants based on cPPAs. Despite just as low and also fixed energy sale prices, or equivalent revenues from the settlement of virtual contracts, onshore wind energy producers selling under the cPPA are subject to the restrictions of the that law until the end of 2023. 

For this reason, the special focus in this year’s report was devoted specifically to cPPAs. Although they do not have a long history in Poland, they are developing very dynamically. With strong and sustained demand for non-carbon energy on the part if industry, cPPAs are assured of funding the next gigawatts of capacity that will be developed at a rapid pace, especially in sectors such as onshore wind and PV. They are an excellent alternative to the expiring auction support and, with stabilization and a slight improvement in the legal standards governing their operation, can effectively help achieve Poland’s transformation goals more quickly. 

What do we write about in our latest report? 

• Wind energy in Poland, Europe and worldwide. 
• Onshore wind energy: legal framework and business prospects. 
• Offshore wind energy: legal framework and business prospects. 

• Special focus: cPPAs – status quo and prospects for development. 

Enjoy the reading. The report consists of nearly 250 pages of up-to-date and comprehensive knowledge about the wind energy market in Poland and Europe. It has been prepared in a bilingual Polish-English format.