Tag:
Capacity market
Eighth capacity market auction—high time for the flexibility market
At the end of December, one of the last power market auctions took place. Under this form of state aid, contracts so far concluded have been for nearly PLN 90 billion (nominally), which will be repaid until 2044. Financing for them comes from electricity consumers, in the average household electricity bill, in which the power market fee accounts for about 7%. This mechanism, although costly, allows maintaining capacity in the power system. So far, however, it has mainly generated subsidies for existing and new coal and gas-fired power plants. The eighth auction turned out to be different from the previous ones: it was decentralised, clean, cheaper and battery-based. Instead, there is no new generating capacity.
17 minutes minutes
Eighth capacity market auction—high time for the flexibility market
At the end of December, one of the last power market auctions took place. Under this form of state aid, contracts so far concluded have been for nearly PLN 90 billion (nominally), which will be repaid until 2044. Financing for them comes from electricity consumers, in the average household electricity bill, in which the power market fee accounts for about 7%. This mechanism, although costly, allows maintaining capacity in the power system. So far, however, it has mainly generated subsidies for existing and new coal and gas-fired power plants. The eighth auction turned out to be different from the previous ones: it was decentralised, clean, cheaper and battery-based. Instead, there is no new generating capacity.
17 minutes minutes
Conclusions from the 7th capacity market auction - cleaner, but adequacy remains a challenge
The results of the seventh auction in the Polish capacity market clearly show the dilemma Poland has faced - existing high-carbon (coal) capacity can no longer be supported with this mechanism, while gas is risky due to the geopolitical situation. Although Polish energy companies have not completely abandoned gas projects, fewer appeared in the auction than previously announced. There is also clearly a greater variety of technologies than before - for the first time, contracts were granted to storage. The market is still expensive - for the second year in a row auctions ended in the first round and at the maximum price.
18 minutes minutes
Conclusions from the 7th capacity market auction - cleaner, but adequacy remains a challenge
The results of the seventh auction in the Polish capacity market clearly show the dilemma Poland has faced - existing high-carbon (coal) capacity can no longer be supported with this mechanism, while gas is risky due to the geopolitical situation. Although Polish energy companies have not completely abandoned gas projects, fewer appeared in the auction than previously announced. There is also clearly a greater variety of technologies than before - for the first time, contracts were granted to storage. The market is still expensive - for the second year in a row auctions ended in the first round and at the maximum price.
18 minutes minutes
The capacity market in Poland―more expensive than ever
Poland has already held six power auctions. Analysis of their results shows that this mechanism in its current form is not an optimum solution for the country. The capacity market has proved more expensive than anticipated, has failed to curb the increase in electricity prices and, in addition, has contributed to the petrification of the outdated and coal-based generation structure. The arduous task of plugging the coal gap has only just begun, which is why decisions on modernisation and on methods for supporting capacity up to 2030 must be taken urgently.
9 minutes minutes
The capacity market in Poland―more expensive than ever
Poland has already held six power auctions. Analysis of their results shows that this mechanism in its current form is not an optimum solution for the country. The capacity market has proved more expensive than anticipated, has failed to curb the increase in electricity prices and, in addition, has contributed to the petrification of the outdated and coal-based generation structure. The arduous task of plugging the coal gap has only just begun, which is why decisions on modernisation and on methods for supporting capacity up to 2030 must be taken urgently.
9 minutes minutes
10 steps to overcome the energy crisis
The prices of coal, gas, and CO2 are reaching record levels while the price for electricity is galloping, causing panic among politicians, energy consumers, and institutions responsible for maintaining Poland’s energy security.
14 minutes minutes
10 steps to overcome the energy crisis
The prices of coal, gas, and CO2 are reaching record levels while the price for electricity is galloping, causing panic among politicians, energy consumers, and institutions responsible for maintaining Poland’s energy security.
14 minutes minutes
From 2025 coal will leave the Polish energy system in waves
Poland’s energy sector is entering a period of major turbulence. The immediate question is the continued operation of the Turów power station since the EU Court of Justice recently ordered the suspension of lignite mining there. This is just the beginning of the problems. After 2025, when public support ends, the first 8 GW of coal capacity may leave the Polish system, and a little later, another 6 GW. The power plants will be shut down due to age and costs. Observing the government’s actions, one can get the impression that all hope lies in the proposed National Agency for Energy Security . Yet, this is a side discussion because no change in ownership structure will improve the situation of the failing coal power industry. Instead, difficult decisions must be made, and the possibilities of supporting the operation of coal-fired power plants with public money are already very limited.
10 minutes minutes
From 2025 coal will leave the Polish energy system in waves
Poland’s energy sector is entering a period of major turbulence. The immediate question is the continued operation of the Turów power station since the EU Court of Justice recently ordered the suspension of lignite mining there. This is just the beginning of the problems. After 2025, when public support ends, the first 8 GW of coal capacity may leave the Polish system, and a little later, another 6 GW. The power plants will be shut down due to age and costs. Observing the government’s actions, one can get the impression that all hope lies in the proposed National Agency for Energy Security . Yet, this is a side discussion because no change in ownership structure will improve the situation of the failing coal power industry. Instead, difficult decisions must be made, and the possibilities of supporting the operation of coal-fired power plants with public money are already very limited.
10 minutes minutes
