The June amendment of the RES Act is aimed at stimulating the development of the Polish renewable energy market. RES auctions are the mechanism designed to drive the development of RES installations and bring Poland closer to meeting the EU targets for RES share in electricity production. By means of auctions, support will be allocated to about 2.5 GW in new installations with a total value of over PLN 10bn. To effectively prepare for the process, it is necessary to develop an optimal bidding strategy – with the help of the “Green Auctions” RES auction simulation, organized by PwC, PWEA and K&L Gates law firm.
The current stagnation in the renewables market, resulting from the anticipation of the final shape of RES support scheme since the end of 2015, has been brought to an end by the Polish President’s signature on this year’s amendment of the RES Act. According to its provisions on RES auctions as a support mechanism for renewables, the auction scheme shall be used to award the support to green energy sources with a total yearly electricity production of almost 14 TWh.
The Act provides for RES support via auctions, where based on prices offered by energy producers, the most competitive installations will be selected to receive guaranteed support for a 15-year period. The projects will compete in various technology “baskets”, ensuring a diversified development of RES capacities in various technologies. It is estimated that the support will be received by almost 1 GW of new capacity in onshore wind farms, about 900 MW in PV installations and several hundred MW in other renewables.
“In the face of increasing demand for energy we should commit to a balanced, diversified energy mix in our country. PWEA’s analysis shows that only such an approach will ensure uninterrupted energy supplies for both households and industry, also post-2021, when some of the outdated conventional units will be decommissioned. The development of wind power, both onshore and offshore, will allow Poland to meet its commitments on decarbonisation of the energy sector under the Clean Energy Package” –Janusz Gajowiecki, PWEA’s President of the Board, has said.
By means of the RES auction, the support scheme under the RES Act will define the group of market players who will enjoy support in the coming years. To be among the auction winners and to maximize their profits, auction participants will have to bid with an optimal price of electricity from their projects. Auction simulations organized by PwC, PWEA and K&L Gates will help define that price for particular projects.
As a result of auction simulation, each participant will receive:
- Individual results for submitted projects and information about their qualification for support scheme
- Anonymized summary of general auction results.
- Invitation to exclusive workshop summarizing the simulation.
“RES auctions will determine which projects, prepared by developers over many years, will succeed, and which will become history. In order to jump on that train and take the best seats, the investors need an optimum bidding strategy, and the auction simulation will help formulate that strategy” – says Jan Biernacki, Energy Group expert at PwC.
Interested participants may register starting from 21 August 2018 via zieloneaukcje2018.pl website, where detailed information on the simulation can also be found. Thanks to the knowledge gained during the simulated auction, investors will be able to prepare themselves for the actual process of participation in the RES auction. The simulated auction has been prepared based on the provisions of the recent amendment to the RES Act. The “Green Auctions” simulation will ensure anonymity of participants.