Warsaw — Poland's power transmission system operator PSE said Wednesday that subsidies for more than 10,544 MW of capacity to be delivered in 2022 were awarded at the country's second capacity auction, with 12,000 MW bid.
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PSE said the auction cleared between Zloty 195.28/kW/year (Eur45.53/kW/year) and Zloty 219.66/kW/year (Eur51.22/kW/year), lower than the country's first auction last month which cleared at Zloty 240.32/kW/year.
PSE said the auction for capacity to be delivered in 2022 closed in the seventh round, with around 12,000 MW offered for the procurement of 10,544 MW.
Last month's auction for capacity in 2021 awarded subsidies for 22,427 MW of mostly hard coal- and lignite-fired capacity. PSE said preliminary results for the December 5 auction would be published within three working days.
Factors affecting last month's clearing price were the low competitive pressure and the high retrofitting costs required to meet the new LCP BREF emission standards that take effect in 2021, according to Aurora Energy Research and Zajdler Energy Lawyers.
PKEE, a lobby group for the country's state-controlled utilities, has estimated that 23 GW of coal-fired capacity requires upgrading at a cost of Eur2.5 billion.
Poland's largest utility PGE said in a filing after the auction it had contracted the bulk of the capacity, 7,062 MW. Another utility, Tauron, estimated its revenue from the auction at between Zloty 82.5 million and Zloty 92.8 million. Lignite-fired generator ZE PAK said it contracted combined capacity of 587 MW.
Under Poland's capacity market rules existing units and demand-side response units are eligible for one-year contracts, those units undergoing modernization for five-year contracts, and new/planned units for 15-year contracts.
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