Poland is launching its first competitive offshore wind auction on Wednesday, a test experts say could revive Europe’s struggling sector as developers vie for long-term contracts after a string of failed tenders across the region.
The auction offers developers 25-year contracts with fixed prices of $135–$143 per megawatt hour, a level of support that contrasts sharply with recent European auctions where low price caps and lack of infrastructure funding have deterred bidders.
Analysts say Poland’s approach could set a benchmark for how to restore confidence in offshore wind investment after US President Donald Trump’s opposition to renewables effectively froze the US market and as recent auctions in Denmark, Germany, and the Netherlands failed to attract enough bidders amid soaring costs and inadequate subsidies or revenue guarantees.
If Poland’s auction is successful, it will show, "offshore wind is not in such a bad place," said Anastasia Gurnell, Associate Director at German lender NORD/LB.
Poland’s scheme for support auctions provides critical "long-term visibility" for investments in offshore wind and its supply chain, alleviating uncertainty plaguing other European auctions, Signe Tellier Christensen, Market Analyst at Aegir Insights said.
Critics counter that such visibility is underpinned by taxpayer-funded subsidies, which cushion investors from market risk and raise concerns about long-term costs to consumers and public finances.
Polish utility PGE, refiner Orlen and a consortium of Polenergia and Equinor are among those expected to bid for up to four gigawatts of capacity.
Rules require at least three bidders and cap winners at 90 per cent of invited capacity to ensure competition. Poland plans to hold similar auctions every two years until 2031.
For Poland, offshore wind is vital for bridging its looming energy gap, with coal power being phased out, nuclear energy several years away and proximity to Russia heightening the country’s emphasis on energy independence.
(Reporting by Stine Jacobsen and Marek Strzelecki; Editing by Susanna Twidale and Louise Heavens)
