Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 198
198
The process of development of an OWF is
initiated by applying for a permit concerning the establishment and use of artificial
islands, installations, and structures (OWF
location permit) issued by the relevant
minister for maritime areas. 22
After the submission of an application for
an OWF location permit for a particular
location, the authority announces this fact,
allowing other investors to apply for a permit for the same area within 60 days from
the announcement. Should more than one
investor apply for a particular location, the
authority institutes a settlement procedure
and decides on the winner based on various
criteria such as conformity with the spatial
plan, length of the permit term, financing
of the planned development (equity, loans,
public funding, etc.), human resources, organisational and logistic support allowing for
the completion of the investments, and the
impact on national and EU sector policies. 23
The winning investor is the one which
obtains the highest score. The results of the
settlement procedure can be challenged
by its participants in an appeal procedure.
Currently, out of 11 competitive procedures
pending four have ended with the winner
and one has terminated without indicating
a winner (no new location permit issued has
been issued yet). 24
Poland
The applications for new sites have been
submitted mainly by already active investors, including PKN Orlen, PGE, Ocean
Winds, Equinor, and EDF Renewables, however other players are also expected. The
power of the new projects can be up to 10.5
GW and could apply for support under the
auctions scheduled for 2025 and 2027 (see
‘Second phase’ in section 2.3(b)below).
It is important to note that all the companies
mentioned above (in sections 1.1 and 1.2),
were granted an OWF location permit in
2012-2013. 25
2.3 Incentives for investments
The Offshore Wind Act stipulates a support
system26 with a total maximum budget of
EUR 22.5 billion in the form of the right to
settle a negative balance (quasi-CfD), which
is the difference between the energy value
at the fixed price (arising from the ERO
decision or the producer’s offer that won the
auction see below) and its market value.
This support is to be awarded in two phases:
(a) The first phase (completed in 2021), the
support granted by way of the individual
decisions of the ERO for projects with
an aggregate capacity of up to 5.9 GW
22 As of the day of the report it is the Minister of Infrastructure
23 The criteria, as well as an indication as to what importance should be granted to particular criteria are specified in an ordinance of the Minister for Infrastructure of 27 November 2021 and is available at https://isap.sejm.gov.pl/isap.nsf/download.xsp/WDU20210002203/O/D20212203.pdf which has
been sightly changed by the ordinance of the Minister for Infrastructure of 29 July 2022 and is available at https://isap.sejm.gov.pl/isap.nsf/download.
xsp/WDU20220001630/O/D20221630.pdf (in Polish only).
24 Status as of 2nd March 2023. The announcements are available at https://www.gov.pl/web/infrastruktura/ogloszenia-na-podstawie-art-27c-ustawy-o-obszarach-morskich2 (in Polish only).
25 Report of the Supreme Chamber of Control (Polish: Najwyższa Izba Kontroli) id,26348,vp,29136.pdf (nik.gov.pl) (in Polish only).
26 The Polish Offshore Wind Support Scheme was approved by the European Commission‘s decision of 20 May 2021. See press release available at
https://ec.europa.eu/commission/presscorner/detail/en/IP_21_2567.
