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Poland's capacity auction clears at EUR 55.77/kW

21 Nov 2018 06:43

21 Nov 2018 06:43

(Montel) Poland's first capacity auction for installations providing back-up power for 2021 cleared at PLN 240.32/kW per year (EUR 55.77), the country’s TSO PSE said late on Tuesday.

PSE secured 22,428 MW in the auction last Thursday, it added.

The Polish capacity price was roughly six times higher than the one in the UK for the winter period 2021-22, said environmental law firm ClientEarth, citing relatively low competition between generators in the Polish tender.

Climate Action Network Europe, an environmental campaign group, has criticised the new Polish scheme, saying four new coal-fired plants with a total capacity of 3.6 GW will receive EUR 3bn or half of their construction costs as a result of the auction last week.

“This is a huge sell-out to the Polish coal utilities at the expense of Polish taxpayers and the climate,” Joanna Flisowska, CAN Europe’s coal policy coordinator, said in a statement on Tuesday.

“The European Council needs to take a stand to end the use of capacity mechanisms to support coal in the ongoing negotiations on the electricity market design,” she said.

Meanwhile, Aurora Energy Research and Zajdler Energy Lawyers & Consultants said on Tuesday that Poland’s new capacity market could face a legal challenge because it shares many flaws with the British scheme, which was suspended in the wake of an EU court ruling last week.

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