Time to Invest in Renewables in Poland
I have argued without a break that the auction mechanism is bad for small projects. Over 90% of the Polish biogas developers are small investors, often only doing one or two projects. Biogas has difficulties in the auction experiences from other countries. I will continue to make this argument for the sector both in Warsaw and in Brussels.
However, well-funded and well-organized developers can be successful in auctions. Ironically, the DG Competition is pushing a practice that actually results in decreased competition in practice. Companies must make a commitment to develop the projects well in advance of the auction itself in order to prequalifiy and have approvals in place. Those development costs have to be optimized by using "templates" that reduce front-end costs and, most important, by having enough of a pipeline to assure some successful bids to cover the cost of pre-bid work. Successful bids will also be projects tailored to maximize revenue and produce the optimum energy output at the lowest cost. This will not work well for farm-based biogas, so ironically the Ministry of Agriculture's pet RES projects will have the most difficulty, if and when these procedures are implemented.