First RES Auction in Poland: Problems and Opportunities
The first RES auction in Poland had problems and bidders could not complete their offers online. But the Ministry has decided to go ahead and award support from those bids that were received. Some issues arise since the bidding was arbitrarily cut-off due to technical problems and because the number of bids seems to be less than the support that was awarded. See European Commission, State Aid Guidelines for environmental Protection, 2014,Sec. 1.3(19)(43).
Bidders had to consider state aid density in their bids and count any grants received to avoid a total amount of support that exceeded the EC guidelines. This is a complex calculation, but the results of the auction seem to reflect that it did not constrain bids by very much. Seven biogas plants bid and won with prices from 502-504 PLN/MWhr. The reference price is 550 PLN. PV plants bid and won many more awards in the up to 1 MW general category. Prices for those winning bids are not yet clear from the published information.
My take from this is that there will not be as many biogas projects bidding in auctions as planned by the government. This reflects the experience everywhere in other countries and the fact that the reference price offered is difficult for farm-based biogas. On the other hand, projects that can be successful at 500 PLN/MWhr seem to have excellent prospects in future auctions, including those planned by CEERES. See CEERES Facebook and website. For inquiries contact randymott (at) ceeres.pl.
Note: A more detailed analysis of the auction in Poland will be posted in the next couple of weeks.