Poland’s Ministry of Environmental Protection has introduced a new regulatory framework that establishes maximum tariffs for offshore wind energy. According to the official announcement on 14 January 2025, the maximum prices range between 485.71 and 512.32 zł/MWh, equivalent to €106.86 and €112.71/MWh. This framework aims to stimulate the development of offshore wind projects in the Baltic Sea, one of Europe’s most promising regions for the energy transition.

Tariff Details

The regulation divides tariffs into three categories based on the project locations:

1. 485.71 zł/MWh → €106.86/MWh: Applicable to areas listed in Annex 1 of the 2020 Act, such as zones 14.E.1 to 14.E.4.
2. 499.33 zł/MWh → €109.85/MWh: Covers specific zones like 43.E.1 and 44.E.1.
3. 512.32 zł/MWh → €112.71/MWh: Targets strategic zones like 53.E.1 and regions 60.E.1 to 60.E.4.

These tariffs are designed to attract investment by offering competitive prices in a region poised to become a European renewable energy hub.

Comparison with Other Countries

When compared to mature offshore wind energy markets, Poland’s tariffs are higher, reflecting its emerging status:

1. United Kingdom: In the 2022 Contracts for Difference (CfD) auctions, average prices for new offshore wind projects were around €43/MWh, enabled by an established market and economies of scale.
2. Denmark: Recent projects, such as Kriegers Flak, achieved tariffs of approximately €49/MWh, underpinned by decades of stable policies and technological advancement.
3. Germany: In recent auctions, some projects bid at €0/MWh, relying solely on wholesale market revenues without direct subsidies, showcasing a highly competitive and mature market.

Poland’s tariffs are competitive within the context of Eastern Europe, where countries like Estonia and Latvia also have tariffs exceeding €100/MWh.

Importance of the Baltic Sea

The Baltic Sea, where these projects will be developed, has an estimated potential of 90 GW by 2050, positioning Poland as a key player in the regional energy transition. These projects could also be integrated into a broader European network, enabling the export of clean energy to neighbouring countries.

Environmental and Social Benefits

The development of offshore wind energy in Poland will significantly contribute to the goals outlined in the National Energy and Climate Plan (NECP), which aims for 23% of renewables in final energy consumption by 2030. Each GW of installed capacity could reduce up to 2 million tonnes of CO₂ annually, while also creating jobs and strengthening local infrastructure.

Long-Term Prospects

As Poland progresses in its energy transition, the cost of generation is expected to decrease due to technological advances and greater market competition. This will enable the country to compete with European leaders and strengthen its position as a renewable energy hub.

Poland’s new offshore wind energy tariffs mark a critical step towards building a competitive and sustainable market. Although prices are higher than in established markets, they represent the necessary foundation for positioning the country as a significant player in Eastern Europe’s energy transition. With the right support, Poland is well on its way to harnessing the potential of the Baltic Sea and achieving its ambitious climate goals.