Poland allocated 3.4 gigawatts (GW) of capacity in its first competitive offshore wind auction, the country’s energy regulator URE said on Thursday.
The auction awarded 25-year contracts at a price range of 476.88 zlotys ($133.09) and 492.32 zlotys per megawatt hour, URE said.
The auction was seen as a crucial test for investor confidence in offshore wind investment after failed tenders in other parts of Europe, where low price caps and a lack of state support have deterred bidders.
For Poland, offshore wind is vital for bridging a looming energy gap, with coal power being phased out, nuclear energy several years away and its proximity to Russia heightening the country’s emphasis on energy independence.
State-controlled utility PGE 
PGE secured a contract for 975 MW at 489 zlotys per megawatt hour, while refiner Orlen 
PKN won a contract for 900 MW at a price of 476.88 zlotys per megawatt hour.
A consortium of Polenergia 
PEP and Norway’s Equinor 
EQNR was also awarded a contract for 1.56 GW at a price of 492.32 zlotys per megawatt hour.
The overall amount of electricity covered by the contracts awarded at the auction is over 330 terawatt-hours (TWH) URE said, nearly double Poland’s consumption last year.
Poland plans to hold similar auctions every two years until 2031. The projects that won the auction have a seven-year deadline to begin delivering electricity to the network, the regulator said.
($1 = 3.5832 zlotys)