Tenders (guaranteed price)

Updated: 09.01.2019

Author: Krzysztof Ignaciuk

The tenders are available for all technologies. There are different tenders for five baskets and separate tenders are carried out for installations with an installed capacity above and under 1 MW. The tender has only one stage in a sealed bid format. The winners of the tenders get a guaranteed price (pay–as-bid) for 15 years. Installations below 500 kW have a guarantee of purchase of their electricity by obliged retailers.

Eligible technologies and support requirements

The winner of an auction will be the bidder offering the lowest price for electricity and will be awarded a guaranteed price per kWh for the period of 15 years but no longer than until the end of 2035 (RES-Act, Art. 40.1b) if the power of the installation is below 500 kW (RES-Act, Art. 92.1.). The auctions will be carried out independently for the following five categories of projects (RES-Act, Art. 73.3a):

  • Installations using biogas from solid waste, sewage sludge biogas, other non-agricultural biogas, biomass, hybrid biomass, thermal waste treatment, high-efficiency CHP (RES-Act, Art. 77.5.2–4 & 8–14); 
  • Installations using hydropower, solely bioliquid, geothermal energy, offshore wind (RES-Act, Art. 77.5.5, 15, 18–20 & 23); 
  • Installations using agricultural biogas (RES-Act, Art. 77.5.1, 6-7); 
  • Installations using onshore wind and solar energy (RES-Act, Art. 77.5.16, 17, 21-22); 
  • Solely hybrid installations (RES-Act, Art. 77.5.24-25). 
Separate tenders will be carried out for installations with power above 1 MW and under 1 MW (RES-Act, Art. 73.4). Eligibility is contingent on the reduction of support by previously received investment aid. Tenders are conducted separately both existing and planned installations.

Wind energy

  • Eligible
  • guaranteed price
  • 15 years from the beginning of the energy production, no longer than until the end of 2035 (onshore) or no longer than until the end of 2040 (offshore)
  • Restrictions depend on the rules of a particular tender

Solar energy

Eligible under RES-Act, Art. 77.5.21-22

  • guaranteed price
  • 15 years from the beginning of the energy production, no longer than until the end of 2035
  • Restrictions depend on the rules of a particular tender

Geothermal energy

Eligible under RES-Act, Art. 77.5.20

  • guaranteed price
  • 15 years from the beginning of the energy production, no longer than until the end of 2035
  • Restrictions depend on the rules of a particular tender

Biogas

Eligible under RES-Act, Art. 77.5.1 & 6-7 (agricultural biogas), under RES-Act, Art. 77.5.2-4, 8-10 (biogas from solid waste, sewage sludge biogas, other non-agricultural biogas)

  • guaranteed price
  • 15 years from the beginning of the energy production, no longer than until the end of 2035
  • Restrictions depend on the rules of a particular tender

Hydro-power

Eligible for plants over 500 kW (RES-Act, Art. 77.5.5, 18-19), but only up to 20 MW (RES-Act, Art. 71.2.2)

  • guaranteed price
  • 15 years from the beginning of the energy production, no longer than until the end of 2035
  • Restrictions depend on the rules of a particular tender

Biomass

Eligible under RES-Act, Art. 77.5.11, 13-14

  • guaranteed price
  • 15 years from the beginning of the energy production, no longer than until the end of 2035
  • Restrictions depend on the rules of a particular tender

Tender characteristics

Pre-qualification criteria

To take part in the tender, it is required to be registered as an energy producer (RES-Act, Art. 71). Other criteria depend on the basket that a particular tender is in.

Bidding procedure

Each tender has only one stage in a sealed bid format.

Tender constraints

The Council of ministers establishes the amount of energy to be bought in the next year until 31 October of the previous year (RES-Act, Art. 72.1.). The price cap is set by the Minister of Energy before every tender (RES-Act, Art. 77.1., currently Order of 20/03/2017 as amended)). The maximal amount of public support is equal to the difference between the referential price multiplied by the amount of produced energy and the revenues from the same amount of energy sold on the competitive market at the average price.

Pricing rules

Pay as bid.

Lead time

The lead time amounts to 36 months for all technologies, except for solar energy (18 months), onshore wind (30 months) and offshore wind energy (72 months) (RES-Act, 79.3.8)a)).

Frequency of tenders

At least once a year

Addressees

The addressees are the renewable energy producers.

Procedure

Process flow and deadlines

The Council of ministers establishes the amount of energy to be bought in the next year until 31 October of the previous year (RES-Act, Art. 72.1.) and the order of tenders to be carried out (RES-Act, Art. 73.7.). The president of the Energy Regulatory Office (URE) organizes the tenders (RES-Act, Art. 73.1.).

Competent authority

Energy Regulatory Office (URE)

Ministry of Energy

Council of Ministers

Penalties

Amount of the fee

The amount of the fee is the difference between the amount of energy produced and energy that ought to be produced multiplied by a half of the offered price (RES-Act, Art. 170. 6.). The president of the Energy Regulatory Office may also put a penalty on the manager of the enterprise but it cannot be higher than 300% of his salary (RES-Act, Art. 172).

Mechanism in place to ensure the payment of the fee

No mechanism in place.

Distribution of costs

Consumers

Levy on Electricity Bills paid by electricity consumers

Poland
Electricity
Heating & Cooling
Transport

Further information

Basic information on legal sources