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Draft act supporting offshore wind farms adopted

27.11.2020

The Council of Ministers adopted a draft act on promoting electricity generation in offshore wind farms, submitted by the minister of climate and environment. The new regulations will significantly facilitate the use of the wind energy potential on the Baltic Sea and the development of Polish companies from the maritime economy sector.

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Thanks to government support for wind farms located in the Baltic Sea, the share of renewable energy sources (RES) in the so-called national energy mix will increase. The support for investors is to be granted for a period of 25 years. After 2020, Poland, as well as other EU Member States, is required to generate at least 15% of electricity from renewable sources.

Offshore wind energy is an important step towards building carbon-free energy. We have the chance to become a leader in the development of offshore farms in the Baltic Sea with a forecasted potential of installed capacity estimated in the WindEurope report at even 28 GW in 2050, emphasised Michał Kurtyka, Minister of Climate and Environment. Baltic Sea has a very large potential that has not been used so far in this matter, he added.

What is more, the project is in line with the assumptions of the EU Strategy for Offshore Renewable Energy Sources, published on November 19 this year, which assumes a very ambitious and accelerated development of offshore renewable energy in the European Union – an increase in the installed capacity of offshore wind energy from the current 12 GW to 60 GW by 2030 and a 25-fold increase in the current capacity to 300 GW by 2050 .

The new act introduces a number of improvements. Administrative and legal procedures have been simplified, reducing the time in which investors can implement investments in offshore wind farms. The Ministry of Climate and Environment predicts that the new regulations will encourage investors and accelerate the process of making the Polish energy sector consists of only zero-carbon energy sources.

In the first phase of the system operation, farms with a total capacity of 5.9 GW will be granted support by way of an administrative decision by the President of the Energy Regulatory Office. Joining the system is possible until 30 June 2021. In the following years, support will be granted in the formula of competitive tenders.

Importantly, the new act provides that investors will be required to conduct a dialogue with potential suppliers of materials and services for the implementation of offshore wind farms. This is a great opportunity for Polish enterprises that will be part of the supply chain of services and technologies necessary for the operation of offshore wind farms.

Offshore wind energy creates great development opportunities also for the traditional industry, including shipyards, as well as steel and cable producers. All these sectors will be the beneficiaries of this project, emphasises the Deputy Minister of Climate and Environment and the Government Plenipotentiary for RES, Ireneusz Zyska.

The first wind farms in the Polish sea will appear as early as in 2024 and will be built successively until 2033. The period of operation of a single wind farm is about 25 years and throughout this period all farms will receive full support from the Polish government. According to the Energy Policy of Poland until 2040, in 20 years as much as from 8 to 11 GW of offshore wind power capacity is to be installed in the Baltic Sea. In 10 years, it should be 5.9 GW.

Offshore wind farms have been successfully operating in many European countries for years. Offshore wind energy is used by, among others, Great Britain, Germany, the Netherlands and Denmark. The new solutions are to enter into force 14 days after their publication in the Journal of Laws, with the exception of some provisions that will come into force on other dates.

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