Posts

Showing posts from February, 2018

New Rules on Polish Auctions for Biogas

Image
The shape of the RES amendments now proceeding in the legislature in Poland reflects what I predicted. This is the first set of rules to have been scrutinized by the European Commission DG Competition on state aid and the changes are generally better for RES developers. There is strong support for biogas in both pricing and procedures.

The reference price in the auction is quite acceptable, especially for projects that use waste feed stock and have heat sale contracts. The apparent shift in calculating state aid deductions from the energy price awarded will put plants without government grants on equal footing in the bidding.

These amendments were required by the European Commission to allow the auctions to proceed under compliance with EU state aid rules. This is the first major adjustment of the Polish system to comply.  It also adds some wind capacity to the auctions and signals a change in the dogmatic position on wind, which the European Commission no doubt found objectionable.  …