Investment Process for Offshore Wind Farms
Steps in the investment process for implementing this system
The investment process for offshore wind farms involves meeting a number of specific requirements and obtaining certain approvals, permits, and decisions, including in the areas of maritime safety and geology.
Step 1 – Verification of location possibilities in the Spatial Development Plan for Internal Sea Waters, Territorial Sea and Exclusive Economic Zone (PZPPOM) and Annexes 1 and 2 to the Act on Promoting Electricity Generation in Offshore Wind Farms (u.p.m.f.w.)
The possibility of locating offshore wind farms is much more limited than in the case of onshore wind farms. In Poland, offshore wind farms may only be located in the exclusive economic zone, which means a minimum distance of 12 nautical miles (approximately 22 km from the shore).
The document enabling verification of areas where offshore wind farms may be located is the Spatial Development Plan for Polish Maritime Areas (PZPPOM). This plan indicates maritime areas whose primary function is the generation of energy from renewable sources.
It should be emphasized that Annexes 1 and 2 to the Act on Promoting Electricity Generation in Offshore Wind Farms (u.p.m.f.w.) specifically define the areas where producers may apply for the right to cover the negative balance. These areas, totaling 2,310.8 km², are located within zones designated in PZPPOM for renewable energy generation and are situated near the Słupsk Bank, Middle Bank, and Oder Bank.
Verification of location possibilities in PZPPOM and Annexes 1 and 2 to u.p.m.f.w.
Step 2 – Permit decision for the erection or use of artificial islands, structures and equipment in Polish maritime areas (PSZW)
The PSZW decision usually constitutes the first step in the investment process for an offshore wind farm, although regulations do not preclude obtaining the environmental decision first.
The PSZW decision replaces the obligation to secure legal title to the property on which the investment is implemented, due to the specific legal conditions applicable to maritime areas.
Permit decision for the erection or use of artificial islands, structures and equipment in Polish maritime areas
Step 3 – Obtaining conditions for connection to the electricity grid
Before obtaining a construction permit for an offshore wind farm, the investor is required to ensure grid connection. For the onshore part of the infrastructure evacuating power from the offshore wind farm, the connection procedure follows the rules indicated for onshore wind farms.
The procedure depends on whether the investor applies for public support in the form of the right to cover the negative balance referred to in Chapter 3 or Chapter 4 of the Act on Promoting Electricity Generation in Offshore Wind Farms.
-
The application must include the PSZW decision confirming the admissibility of the location.
-
The application must include a statement declaring the waiver of the right to cover the negative balance, under penalty of criminal liability.
-
In addition to the advance payment, the investor must provide security for obligations under the connection conditions at a rate of PLN 60 per kW of requested connection capacity, in the form of a deposit or insurance/bank guarantee.
-
The connection conditions are issued within 150 days from the date of application or payment of the advance, whichever occurs later.
-
Obtaining preliminary connection conditions.
-
Converting preliminary conditions into final conditions after winning the auction.
-
Signing the grid connection agreement.
-
Signing the electricity distribution agreement.
Step 4 – Permit to install and maintain cables within internal sea waters and the territorial sea and approval for installation and maintenance of cables in the exclusive economic zone (PUUK and UUUK)
After obtaining the PSZW decision, the investor must obtain permits for laying cables in maritime areas. Delivering energy produced by the offshore wind farm requires installing network infrastructure to transport energy through maritime areas to the connection point.
-
Permit for laying and maintaining cables within internal sea waters and the territorial sea.
-
Approval for laying and maintaining cables in the exclusive economic zone.
For both decisions, if the investor is a generator, provisions of the Act on the Preparation and Implementation of Strategic Investments in Transmission Networks may apply, enabling strategic decisions for transmission infrastructure.
A detailed description of this procedure can be found at the following link:
Permit to install and maintain cables (PUUK and UUUK)
Step 5 – Decision on environmental conditions for the entire investment
The investor must apply for a decision on environmental conditions (environmental decision) enabling the implementation of the offshore wind farm project.
This obligation applies only to the construction of the offshore wind farm. The set of devices for power evacuation is classified as a project that may potentially have a significant environmental impact. However, due to the importance of assessing cumulative impacts within the entire offshore wind farm project, an environmental decision is also required for this part.
A detailed description of this procedure can be found at the following link:
Decision on environmental conditions
Step 6 – Obtaining geological decisions
Before preparing the construction design, the investor is required to obtain the following geological decisions:
-
Decision approving the geological works project prepared to determine geological and engineering conditions for the foundation of the offshore wind farm and the equipment and facilities forming part of the power evacuation system, as well as any amendments to such a geological works project.
-
Decision approving geological documentation specifying geological and engineering conditions for the foundation of the offshore wind farm and the equipment and facilities forming part of the power evacuation system, as well as any amendments to such geological documentation.
Detailed descriptions of these procedures can be found at the following links:
Approval of the geological works project
Decision on the approval of geological documentation for an offshore wind farm
Step 7 – Obtaining decisions approving expert assessments and plans required under the Maritime Safety Act
According to the Maritime Safety Act, offshore wind farms and the set of equipment for power evacuation must meet requirements regarding safety, environmental protection, protection of the state border at sea, and national defence.
Compliance with these criteria is verified through the approval mechanism in the form of administrative decisions concerning expert assessments and plans prepared by the investor to ensure integration of the investment project with maritime safety, environmental protection, and defence requirements.
Decisions approving expert assessments and plans concerning maritime navigation safety, personnel safety, and marine environmental protection
Decisions approving expert assessments in the field of communication systems, maritime safety, protection of the state border at sea, and national defence
Step 8 – Obtaining a construction permit
The construction permit is an element of the investment process that forms the basis for commencing construction works on the offshore wind farm or the set of equipment for power evacuation. Without this decision, construction works cannot begin, nor can an application for an operational notification be submitted.
It should be emphasized that the construction permit applies to the entire construction project specified in the investor’s application. However, there is no obligation to implement the investment project in its entirety at once. Under the Building Law, it is permissible, under certain conditions, to divide the project into stages. This is possible when the construction project includes more than one facility. The investor must bear in mind that the construction permit may only cover a facility or a set of facilities that can function independently in accordance with their intended purpose.
For the issuance of a construction permit for the set of equipment for power evacuation, the provisions of the Act on the Preparation and Implementation of Strategic Investments in Transmission Networks may also apply, enabling strategic decisions for transmission infrastructure.
Construction permit
Step 9 – Certification required under the Maritime Safety Act
Due to the scale and significance of offshore wind farm investments for energy security, the investor is required to fulfil a number of certification obligations.
According to Article 113g(1) of the Maritime Safety Act, during the implementation of the investment and construction process for the offshore part, the investor must obtain the following certificates:
-
Certificate of design conformity
-
Certificate of admission to operation
-
Certificate of operational safety
Certification of offshore wind farms and the set of equipment for power evacuation
Step 10 – Submission of expert opinions on design and workmanship conformity to the transmission system operator
Expert opinion on design and workmanship conformity submitted to the transmission system operator
Step 11 – Obtaining an operational notification
After completing the construction of the offshore wind farm or the set of equipment for power evacuation, in order to commence electricity generation, it is necessary to obtain an operational notification. This decision confirms the possibility of legally using the facility in accordance with the previously issued construction permit.
Operational notification
Step 12 – Obtaining a licence for the generation of electricity from RES
The commencement of electricity generation and sale from an offshore wind farm is possible after the investor obtains a licence for the generation of electricity from renewable energy sources. The licence is also a prerequisite for the investor to benefit from renewable energy support schemes.
Importantly, in the case of offshore wind farms, obtaining a licence involves the obligation to regularly pay an additional licence fee. For offshore wind farms, the amount of this fee is higher than for other sources, as offshore wind farms cannot be subject to property tax and therefore pay an additional licence fee based on revenue and installed capacity.
Details on determining the amount of licence fees for offshore wind farms are provided in the Regulation of the Council of Ministers of 12 October 2021 on the licence fee (Journal of Laws, item 1938).
Licence for the generation of electricity from renewable energy sources (RES)