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The Nordex Group in Poland

24/08/2020

Following a long period in which Poland’s climate policy has largely neglected renewable energies across the country, the country’s Ministry of Climate is setting new priorities for green investments in the Polish energy industry. This means that Poland, which covers most of its energy demand with fossil fuels, may now be at a turning point and looking to make an important contribution to the energy transition. One key task will be to replace old coal-fired power stations with renewable energy sources and move closer to the EU’s climate policy objectives.

The state has subsidised energy in Poland through an auctioning system since 2016. Energy sources are divided up among different baskets, which are auctioned off separately. Onshore wind energy and photovoltaic (PV) installations are in the same auction basket. Due to the cost competitiveness of onshore wind turbines compared to other energy sources, some 3.3 GW of capacity was allocated to onshore turbines between 2018 and 2019. Another round of auctions is expected by the end of 2020, with some 800 MW of onshore wind energy and 700 MW for PV installations. This share could ultimately be much higher due to the strong, competitive position of onshore wind energy, however, and the Polish government has recently considered extending the auctions to 2026.

The Polish electricity system’s strong dependence on coal power and rising power prices due to carbon emissions are making the wholesale price of electricity in Poland one of the highest in Europe. The latest developments are therefore also showing that interest in PPAs, i.e. long-term power purchase agreements, has increased within the country. The PPA business model, which involves purchasing electricity directly from the renewable energy producer and entering into a contract on the long-term supply of electricity for a price agreed in advance, is becoming an attractive counter-model outside the national support programme.

Customers of the Nordex Group have also placed orders for the delivery of N149/4.0-4.5 turbines from the Delta4000 series for PPA-based projects. The N149/4.0-4.5 was the world’s first turbine with a flexible rated capacity included in the design and operating strategy. This design approach in combination with a variety of operating modes makes it possible to adapt each Delta4000 to the specific requirements of the network operator, local wind conditions, and noise specifications. The N149/5.X and N163/5.X took this flexible approach to a new level, and a wide range of power modes can now be covered in the 5 MW+ class.

Poland is once more regarded as an interesting market for investors and developers of onshore wind projects. It is reasonable to assume that the appeal of PPAs will increase and that there may be some political upheaval. The conversation about the 10H rule, which was introduced in 2016 and states that the minimum distance between a wind turbine and the nearest residential building must be ten times the height of the turbine, is another important step in the country’s climate policy debate. The Polish government has announced its intention to relax this restrictive rule and publish information on easing before the end of 2020.

The Nordex Group has been represented in Poland since 2007. The company currently employs 48 people there who are spread across the local head office in Warsaw and nine service points throughout the country. The onshore wind energy capacity installed to date exceeds 460 MW. Turbines mainly from the Delta generation – the fourth generation of the Nordex Group’s multi-megawatt platform – are currently under construction and set to produce an additional 178 MW. With these types of turbine, Nordex Group customers benefit from sophisticated technical solutions that have proven their worth a thousand times over.

Interest in renewable energies in Poland is growing. Thanks to a broad product range and flexible solutions, the Nordex Group is perfectly positioned to meet the region’s project-specific requirements and individual customer needs.

KeyFacts Energy Industry Directory: Nordex

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