Poland adopts draft amending capacity market act
Polish government has adopted a draft amendment to the capacity market act prepared by the Ministry of Climate and Environment (MKiS), which provides for four supplementary auctions to be held in the capacity market from the second half of 2025 to 2028, according to a statement published on the website of Prime Minister's office KPRM. Power units emitting more than 550 kilograms of CO2 per MWh will be allowed to participate in these auctions.
"The draft envisages the introduction of supplementary auctions in the capacity market - from the second half of 2025 to 2028. The auctions will purchase additional power to ensure energy security in our country," the statement said.
It added that in this market, power is contracted several years in advance and ensures that the projected energy demand of consumers in a given year is covered.
The information recalls that the EU's introduction of a cap on CO2 emissions in the capacity market has reduced the number of power units that compete in capacity market auctions.
"This situation may lead to a lack of coverage of all the power demand needed to ensure security of supply," the statement pointed out.
"To address this problem, the government is introducing additional supplementary auctions [so-called top-up auctions - PAP ed.] where generating units emitting more than 550 kilograms of CO2 per MWh will be allowed to participate and compete with other entities that meet the 550 kilograms of CO2 per MWh emission limit," it added.
In view of this, top-up auctions will be introduced under the current capacity market mechanism - four of such auctions will be held for the following delivery periods: the second half of 2025 (semi-annual auction) and for the delivery years 2026, 2027 and 2028 (annual auctions).
"The top-up auctions will be carried after the completion of the supplementary auctions of the capacity market, i.e. they will be conducted less than one year in advance of the start of the so-called capacity obligation (lead time)," the PM's office explained.
"The top-up auctions will in fact be an extension of the existing capacity market processes (i.e. the supplementary auctions)," it added.
They will be organised when there are problems with the sufficiency of generation resources after the main and supplementary auctions for a given year of supply.
"The organisation of top-up auctions after the completion of the supplementary auction processes for a given year of supply will ensure that the share of generation capacity suppliers that meet the CO2 limit is maximised," KPRM's statement indicated.
The new rules are expected to come into force seven days after being published in the Journal of Laws.
jz/ ao/