The 2024 renewable energy auctions, organised by the Polish Energy Regulatory Office (URE), have yielded significant results and highlighted major challenges for the sector. According to URE President Rafał Gawin, only two of the seven auctions held in December were successfully concluded. A total of 16 TWh of electricity were awarded, amounting to approximately PLN 5.1 billion, which represents 36% of the energy volume and 30% of the initial offered value.

Photovoltaics and Wind Power Lead the Energy Transition

The most notable auction was AZ/7/2024, aimed at photovoltaic and wind installations with a capacity exceeding 1 MW. This segment attracted the most interest, with 105 producers submitting 174 bids, of which 172 were for solar projects. More than 15.4 TWh of energy were awarded to 128 bids from 82 producers, amounting to nearly PLN 4.9 billion, or 78% of the offered energy value.

This auction will enable the construction of 1,481 MW of installed capacity in photovoltaic projects and 90.8 MW in onshore wind farms. The reference prices set were PLN 389/MWh for photovoltaics and PLN 324/MWh for wind energy, with the minimum awarded prices ranging between PLN 244.80/MWh (solar) and PLN 149/MWh (wind).

Results in Projects Below 1 MW

In the AZ/6/2024 auction, aimed at projects with a capacity of no more than 1 MW, the winning bids were exclusively for photovoltaic installations, reaching a total installed capacity of 67.2 MW. However, the results were modest compared to other categories, as only 0.74 TWh of electricity was awarded, representing just 7% of the offered energy volume.

Disinterest in Biomass and Biogas Presents Regulatory Challenges

The auctions targeting technologies such as biomass, biogas, and geothermal energy failed to meet the minimum requirement of three valid bids, leaving them void. According to Gawin, this lack of interest reflects a significant challenge in diversifying the country’s energy portfolio. “The disinterest in biogas, hydroelectric, and biomass plants underscores the need to rethink their role in the auction system and adjust regulations for more effective support,” explains the URE President.

RWE: A Key Player in the Polish Renewable Market

A noteworthy case in these auctions was RWE, which secured 31 photovoltaic projects with a total capacity of 102 MWdc (84 MWac). These projects add to RWE’s 91 MWac of operational solar capacity in Poland, with construction expected to begin in early 2025. According to Katja Wünschel, CEO of RWE Renewables Europe & Australia, “This is a significant achievement that underscores our intention to expand solar energy use in Poland.”

In addition to its presence in the solar market, RWE operates 541 MW of installed capacity in wind farms and is developing its first offshore wind farm, the FEW Baltic II project, establishing itself as a key driver of Poland’s energy transition.

Outlook and Need for Adjustments

Since 2016, renewable energy auctions have awarded over 274 TWh of electricity, valued at approximately PLN 67 billion, proving to be a fundamental pillar of the country’s energy transition strategy. However, the dominance of photovoltaics highlights the need to diversify the technologies involved in future auctions.

The current regulatory framework, according to Gawin, must be reviewed to encourage the participation of emerging technologies and ensure balanced sector development. “Adjusting the rules to support less-represented technologies will be essential for a more robust transition,” concludes the URE President.