Poland allocates 3.4GW of offshore wind power in its first auction

?Poland's energy regulator URE announced on Thursday that 3.4 gigawatts of capacity were allocated in the first?competitive auction for offshore wind power.

URE reported that the auction resulted in 25-year contracts with a range of prices between 476.88 zlotys (133.09 dollars) and 492.32 zlotys for each megawatt hour.

The auction was

As a test of investor confidence for?offshore investment? after failed tenders elsewhere in Europe where low price caps and lack of state assistance have deterred bidders.

Offshore wind is crucial for 'Poland to bridge a looming gap in energy, as coal power 'is being phased out and nuclear energy will be available within a few years. Its proximity to russia also heightens the importance of energy independence.

PGE, a state-owned utility, won a contract to supply 975 megawatts at 489 zlotys each. Refiner Orlen was awarded a contract to provide 900 megawatts at a cost of?476.88 per megawatt.

A consortium consisting of Polenergia, Equinor and the Norwegian company Equinor won a contract worth?1.56 GW for a price per megawatt-hour of 492.32 zlotys.

URE reported that the?overall electricity amount covered by the contracts at the auction was over 330 terawatt hours (TWH), nearly twice the consumption of Poland?last?year.

Poland will hold similar auctions twice a year until 2031. The regulator stated that the?projects' won in the auction had a deadline of seven years to start supplying electricity to the grid.

(source: Reuters)