Polish climate minister says the December auction for Baltic offshore wind could unlock new investment, delivering power to Polish consumers at a lower cost.
Auction Anticipation
The Energy Regulatory Office will hold an auction on December 17 to allocate up to 4 GW of offshore wind capacity – roughly the size of a large coal plant.
Last year’s German and Danish auctions failed to attract any bids, leaving the market uncertain.
Investment Landscape
Polish energy giants are lining up for the auction. Orlen, together with Canadian Northland Power, plans Baltic East, while PGE’s Baltica 1 could supply 1.5 GW by 2032. Polenergia is also poised to launch Baltic 1, its largest offshore project to date.
All projects are valued in the tens of billions of zloty, indicating robust financial commitment.
Regulatory Reforms
The government streamlined auction rules through a new decree, backed by the Sejm and signed by President Karol Nawrocki. Industry welcomed the clearer terms and the political support for offshore wind.
Market Challenges
Construction and maintenance of offshore turbines remain costly, and the last two years have seen external pressures from the U.S. and regulatory hurdles in Europe.
If no bidding company meets the criteria, the sector could face a setback, though new rules allow for an intervention auction next year.
Strategic Outlook
Successful auction outcomes could position Poland as a regional wind hub and boost the economy: 10 GW of capacity could add nearly 55 billion zloty to GDP, while 33 GW could bring close to 300 billion.
Offshore wind is also seen as a key element of Poland’s energy security, reducing dependence on costly foreign fossil fuels and providing sovereignty.
