Investors in the renewable energy market are waiting for the announcement of this year’s auctions, which should take place in the fourth quarter of this year. Meanwhile, a draft of a key regulation specifying the terms of the auctions that will take place in 2021 has appeared on government websites. The forecast of the distribution of the offered energy in the wind-photovoltaic basket for projects with a unit capacity of more than 1 MW, in which, according to the authors of the regulation, a larger pool of support is to be won by investors from the PV sector is worth noting.
The Council of Ministers has prepared a draft regulation on the maximum amount and value of electricity from renewable energy sources that can be auctioned in 2021.
In the published draft regulation, the volumes and values of energy planned for sale in individual baskets in auctions in 2021 were adopted, which are to result in the creation of installations using:
- onshore wind energy with a total installed electrical capacity greater than 1 MW – 300 MW,
- solar radiation energy with a total installed electrical capacity of more than 1 MW – 700 MW,
- solar radiation energy with a total installed electric capacity of not more than 1 MW – 1000 MW,
- hydropower with a total installed electrical capacity of more than 1 MW – 20 MW,
- hydropower with a total installed electrical capacity of no more than 1 MW – 10 MW,
- agricultural biogas with a total installed electrical capacity of more than 1 MW – 20 MW,
- biogas obtained from landfills and biogas obtained from sewage treatment plants to generate electricity with a total installed electrical capacity of no more than 1 MW – 10 MW in total,
- biomass in a dedicated biomass combustion installation with a total installed electrical capacity of more than 1 MW – 100 MW.
The draft ordinance assumes a value equal to “0” for the maximum amount and value of electricity in existing and modernized renewable energy installations.
The total estimated volume and value of energy intended for sale during the auction in 2021 is 53.235 TWh and 19.822 billion PLN, respectively, in the 15-year support period. These are lower values than provided for this year’s auctions.
For the auctions planned for 2020, the total estimated volume of energy intended for sale is 75.295 TWh, including 72.795 TMWh for new installations and 2.5 TWh for existing installations. However, the total maximum value of these volumes is PLN 27.433 billion, including PLN 25.833 billion for new installations and PLN 1.6 billion for existing installations.
The maximum amount and value of energy offered during the auction in 2019 was 184.7 TWh for the amount of PLN 69.6 billion. As a result of these auctions, less than half of the planned amount and over three times less energy value were contracted, selling approximately 90.7 TWh of electricity for the amount of PLN 20.56 billion.
According to Art. 73 sec. 9 of the RES Act, the amount and value of electricity generated in installations located outside the territory of the Republic of Poland and outside the exclusive economic zone, which may be sold by auction in the next calendar year, is 5 percent. the amount and value of electricity intended for sale by auction in the previous year, in installations referred to in Art. 72 sec. 1 point 2 of the Act. Thus, the values indicated in § 3 and § 4 of the draft regulation also include energy generated in renewable energy installations located outside the territory of the Republic of Poland and outside the exclusive economic zone.
Justifying the adoption of the above auction conditions for 2021, the authors of the draft regulation emphasize, referring to Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, that by 2022 the indicative trajectory for the share of energy from renewable sources in final energy consumption must reach a benchmark of at least 18%. the total increase in the share of energy from renewable sources from the national target for a given EU country for 2020 to its contribution to the achievement of the EU target for 2030.
Auctions in 2020
Currently, the ERO is pre-qualifying for this year’s auctions. However, their dates have not yet been announced.
In this year’s wind-photovoltaic auctions for projects with a capacity of over 1 MW, the purchase of energy from wind farms with a capacity of up to 800 MW, as well as from photovoltaic power plants with a capacity of 700 MW, is forecast.
In addition, in the basket for wind and PV up to 1 MW, according to the Ministry of Climate, all support is to be won by photovoltaics and it is forecast that the sale of energy from PV power plants with a total maximum capacity of 800 MW will be covered by guarantees.
Support will also cover hydropower plants above 1 MW – with a total capacity of 20 MW, hydroelectric plants with a capacity of up to 1 MW – a total of 10 MW, as well as agricultural biogas plants with a capacity of over 1 MW – per 20 MW, other biogas plants with a unit capacity of up to 1 MW – for 10 MW, as well as the so-called dedicated biomass combustion installations with a unit capacity of more than 1 MW – with a total maximum capacity of 100 MW.
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