On 7 February 2025 the Ministry of Climate and Environment submitted a draft amendment to the Act on Promotion of Electricity Generation from Offshore Wind Farms¹ (UD162) (“Project”), which brings significant changes to the second phase of the offshore wind development in Poland. With the first offshore wind auction scheduled for 2025, the industry is calling for the rapid adoption of the Project. The opinions submitted in the public consultations of the Project have not yet been addressed by the Ministry.

OWF auctions to be announced later

The deadline for the President of the Energy Regulatory Office (“President of ERO”) to announce an offshore wind auction and publish the auction rules will be reduced from 6 months to 30 days before the auction date. The proposed timeframe makes it significantly more difficult for investors to prepare for the auctions and the regulatory uncertainty may translate into lower turnout in the 2025 auction.

Additional (intervention) auction in 2026 – an emergency solution to prevent investment gaps

If the 2025 offshore wind auction is not held due to the failure to submit a minimum number of certificates for admission to the auction or is not resolved due to the submission of less than three valid bids, an additional (intervention) auction will be held in 2026. The additional auction will be mostly governed by the same rules as the 2025 auction (including the rules of indexation)². However, the Project does not explicitly provide that the auction rules announced by the President of the ERO will have to be the same as for the 2025 auction, nor does it specify a date by which the additional auction would take place (e.g. a first quarter of 2026).

Preliminary certificates of admission to the auction

Investors who have not yet obtained an environmental decision may obtain a preliminary certificate of admission to the auction. This preliminary certificate will be valid for 12 months from the date of issuance, but no longer than the validity period of the preliminary grid connection conditions or the grid connection agreement(s), and the validity period of the location permit (PSZW). Upon submission of the environmental decision, the President of ERO will conduct a reassessment of the application.

One location, two projects

Areas from Phase I of the offshore wind development in Poland may be available for investments from Phase II if the maximum installed capacity resulting from the location permit (PSZW) for a given area has not been fully used by an investor. According to the Project, the total installed capacity of both OWFs may not exceed the capacity specified in the location permit and the installed capacity of a smaller OWF may not be less than 25 percent of the maximum installed capacity resulting from the permit. The new OWF project to be located on the same area may benefit from the contract for difference (CfD) scheme for Phase II projects.

In addition, two separate auction bids may be submitted for two OWFs located within the same area, provided that each OWF has a separate power output track.

New rules on indexation

The Project modifies the current rules for indexation of the CfD contract and introduces provisions limiting the indexation by the consumer price index (CPI) to the amount of the medium-term inflation target set by the Monetary Policy Council (Rada Polityki Pieniężnej). The industry proposes that the cap should not apply to the period between the auction and the commissioning of the OWF project, when the inflationary risks are the highest.

Changing the location of the foundations of the OWF or relevant substations

Minor adjustments to the placement of offshore wind turbines or other elements, i.e. adjustments of no more than 50 meters, will not be considered as deviations from the approved construction design or other conditions of the building permit, if they do not require a change of the location permit (PSZW) or the environmental decision for the project. Such an adjustment will only be subject to a written notification submitted to the relevant authority.

Shared grid infrastructure

More than one OWF may use the same offshore or onshore substation, or a set of power output facilities or their elements, provided that the required metering and billing systems are installed. This solution should also enable the sharing of the medium voltage network in order to bring the most benefits for investors who share the infrastructure.

The Project explicitly indicates that such infrastructure sharing would not be considered as cable pooling.

Sale of energy during the period of technological start-up of the OWF

Within 12 months of obtaining an interim operating permit (ION), but prior to obtaining a generation licence, generators will be able to sell electricity generated at the OWF or part thereof on the day-ahead, intraday and balancing markets. Electricity sold during the period of technological start-up of the OWF will not be eligible for the right to cover the negative balance under the CfD support scheme.

Market-based redispatching

The Project will improve the stability of revenues for the OWF investors, as the right to cover the negative balance will also cover the periods of market-based redispatching during the periods when the TSO does not guarantee the full power output from the OWF project, i.e., during the period of 7 years from the receipt by the TSO of information on the issuance of a decision determining the price on the basis of which the negative balance will be covered³.

1. The Project is available in Polish: https://legislacja.gov.pl/projekt/12394351/katalog/13110266#13110266.
2. Articles 30-37 of the Act on Promotion of Electricity Generation from Offshore Wind Farms shall be applied accordingly to the additional auction.
3. The period referred to in Article 54(1) of the Act on Promotion of Electricity Generation from Offshore Wind Farms.