Poland plans to hold its first electricity capacity auction in November

Poland plans to hold its first electricity capacity auction
in November.
As part of the scheme, power producers will be paid for being ready to provide electricity at all times
.

Poland plans to hold its first electricity capacity auction in November

Most of Poland's electricity comes from coal, mostly outdated power plants, many of which will need to be shut down in the coming years, increasing the risk of
security of supply.

The government promised to maintain the coal industry at the time of the 2015 election, but has reversed course this year and acknowledged the need to increase its low-emission energy capacity
.

However, state-run utilities still have a handful of coal-fired power stations under construction or planned and are facing difficulties
finding financing.

Poland hopes the capacity market will help finance projects and guarantee a stable power supply, while critics say the plan will only strengthen Poland's reliance on coal, leading to higher
electricity prices.

"The electricity market will ensure stable power supply
for households and industry over the long term," the Department of Energy said in a statement.
It is also the most cost-effective way to
ensure the right amount of electricity.
”

On Nov.
15, utilities will compete to acquire capacity
for 2021, the Department of Energy said.
The 2022 capacity auction will take place on December 5 and the 2023 capacity auction
will take place on December 21.

The Minister of Energy estimates the size of the capacity market program at PLN 2-300 million (about 537 million to 805 million US dollars).

The EU's national aid regulator approved power backup schemes for Germany, France and four other EU countries in February, saying these would ensure safe supply
in the event of a power outage.
Italy and Poland have also been approved to set up such schemes
.

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