Why Are Offshore Wind Electricity Prices Capped in Poland?

January 21, 2025

The Polish Ministry of Climate and Environment has recently implemented a new regulatory framework that sets specific price caps for offshore wind electricity, aimed at balancing operational costs with renewable energy targets. This regulation factors in the proximity of wind projects to the coastline, acknowledging that further offshore projects face higher operational costs. The detailed price caps set by the ministry are PLN485.71/MWh (€114/MWh) for projects located on the closer Oder Bank and the eastern part of the Slupsk Bank, PLN499.33/MWh (€117/MWh) for those on the western part of the Slupsk Bank, and PLN512.32/MWh (€120/MWh) for projects on the more distant Central Bank. This tiered pricing scheme underscores Poland’s commitment to expanding its renewable energy infrastructure, considering the diverse costs involved.

Poland’s Renewable Energy Goals

Poland’s move to set a pricing cap is a pivotal part of its broader strategy to significantly boost renewable energy usage, targeting a 29.8% share in final energy consumption by 2030. The nation has set ambitious goals to reach up to 5.9 GW of offshore wind capacity by 2030 and 18 GW by 2040. These price caps are designed to make offshore wind projects viable and attractive, addressing the varying investment and operational costs associated with different locations. This regulatory framework stimulates the growth of the renewable energy sector while safeguarding investors against fluctuating costs, ultimately moving Poland closer to its green energy targets. By ensuring financial feasibility, the country can attract more investments in renewable energy, paving the way for substantial advancements in sustainable energy production. This strategy not only supports green energy expansion but also stabilizes the economic elements of the projects, driving Poland toward a future of increased renewable energy reliance.

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