Polish Briefing: Progress on the act on offshore

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Offshore wind farms. Photo: BiznesAlert.pl
Offshore wind farms. Photo: BiznesAlert.pl

What goes on in Poland on the 2nd of October.

Progress on the act on offshore

The Standing Committee of the Council of Ministers adopted and submitted to the Legal Affairs Committee a draft act on support for offshore wind energy, informed the government’s representative for renewable energy sources, Ireneusz Zyska.

As explained by Zyska, after the Legal Affairs Committee, the draft will return to the Permanent Committee, and the government’s intention is for the Sejm to deal with it for the first time on November 4. – We want the act to enter into force this year –  reminded Zyska.

In the latest version of the draft act on support for offshore wind energy in the first phase of the system’s operation, for farms with a total installed capacity of 5.9 GW, support will be granted by way of an administrative decision by the President of the Enerfy Regulatory Office. The possibility of entering this system ends on June 30, 2021, which results from the EU regulations on state aid. Additionally, such a mechanism will require the approval of the European Commission.

On November 4-5, 2020, the law is to be adopted by the Sejm, in the first half of December it is to be signed by the president.

In the following years, support will be granted in the formula of competitive auctions. Due to the amount of investment, unlike other RES technologies, the maximum period of support for offshore wind farms will be 25 years. A special tax on offshore wind farms is to be included in the act as they are not subject to real estate tax. The taxable amount will be the installed capacity of a given farm, the tax rate will be the product of this capacity in MW and the amount of PLN 23 thousand.