127 MW PV Online In Poland Out Of 870 MW Auctioned

Polish Solar Market Sees Only 36% Solar Power Capacity Coming Online Out Of 870 MW Auctioned During 1st & 2nd Auction; Over 500 MW Awarded In 3rd Auction To Come Online By May 2020: IEO
05:34 AM (Beijing Time) - 14. April 2019
poland systems IEO

Key Takeaways

  • Polish renewable energy institute IEO says out of 870 MW solar power capacity awarded during 1st and 2nd renewable energy auctions in Poland, the country has seen only 36% or 127 MW of it coming online
  • During the 3rd auction which took place in November 2018, a little over 500 MW was awarded, which has time till May 2020 to be switched on
  • Between 2016 and 2019, construction cost of developing up to 1 MW of solar power plant has fallen by PLN 1 million ($0.26 million) in 2019 compared to PLN 4 million ($1.06 million) cost in 2016

During the first and second renewable energy auctions in Poland concluded in 2016 and 2017, the Eastern European country awarded 870 MW of solar PV projects. Out of this, the first auction awarded 68.4 MW and 73 projects, but only 55 projects with a total capacity of 52.5 MW have come online so far, according to Instytut Energetyki Odnawialnej (IEO). Under the second auction, 26% of the capacity awarded has come online – that is 94 projects with 75 MW capacity.

Overall, out of the 2 auctions, 127 MW equal to 36% of the 870 MW PV capacity awarded has come online, according to the IEO report Photovoltaic Market in Poland 2019. Projects awarded in the November 2018 auction, a little over 500 MW, have time till May 2020 to come online. The full report is scheduled to be published at the beginning of June 2019.

In November 2018, according to China’s ReneSola, which is quite active in the market, 3 renewable energy auctions were conducted in the country, of which AZ/9/2018 had solar and wind power projects of up to 1 MW capacity competing against each other. ReneSola says it won 26 utility scale projects of 1 MW each out of 554 projects awarded (see ReneSola Secures 26 MW In Poland Auction).

In July 2018, IEO said by 2020 it expects Poland to have 1.2 GW of cumulative PV capacity under the business as usual scenario and 3.2 GW in a best case scenario (see At Least 1.2 GW PV Expected For Poland By 2020).

Most solar farms will be spread across the regions of Dolnośląskie, Warmińsko-Mazurskie, Mazowieckie and Łódzkie Voivodships. So far, the largest number of PV farms under the 2016 and 2017 auctions has been established in the province of Lodz and Warmian-Masurian, according to IEO. Due to quickly decreasing material cost,  investment cost for a 1 MW plant has come down by PLN 1 million ($0.26 million) in 2019 compared to PLN 4 million ($1.06 million) cost in 2016.

With 3 auctions already conducted, and another one planned for 2019, IEO believes the total investment in solar farms can be expected to be nearly PLN 5 billion. However, securing easy financing is still a challenge for the PV power industry even though banks are now getting confidence in the sector thanks to public and investment aid available, according to IEO. It also said the government would do well to streamline administrative processes.

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani