This is the moment to consider alternative to auction selling energy, concluding favorable PPAs. OZEOS helps in all formalities, digitally conducts the process of profiling and combining retailers with RES energy buyers.
The President of the Energy Regulatory Office presented a draft reference prices for renewable energy sources (RES) for 2022. 8 and 9 December 2022 two auctions for wind on land and PV are planned, from 12 to 16 December, for other technologies. In the seven December auctions, approximately 34 TWh of green energy with a maximum value of approximately PLN 14.4 billion will be sold.
Price increase
In 2022, the Ministry proposed the biggest price increase in history, but it will not apply to all technologies. These are the maximum prices for which electricity can be sold at RES auctions in a given year. The price level is higher than in 2021 as many as 28 cases. The increases include mainly biogas, not the most popular technology in recent years, which is photovoltaics.
Previous auction results
As a result of auctions conducted in 2016-2021, a total of more than 260 TWh of energy worth over PLN 59.2 billion was contracted. Over the years, the level of contracted prices has begun to decline. Only last year prices in the installation basket below 1 MW were 250 PLN/MWh (June) and 280 PLN/MWh (December), while in the basket above 1 MW - 240 PLN/MWh (June) and 260 PLN/MWh (December).
Changes in the energy market
The situation on the energy market began to change rapidly due to the energy crisis and the ongoing war in Ukraine. Prices in the auctions in the last two years have been increasingly less attractive and more installations have begun to contact under Power Purchase Agreements. Contracts cover significantly higher prices than those contracted in auctions and allow to secure prices in the long term.
Attractiveness of RES auction under a large question mark
The prices obtained in the auction at the level of 250-300 PLN/MWh for PV installations and more than 250 PLN for wind installations may have seemed attractive to investors a while ago. Is that how it is today? The answer to that question is not clear, it is best to say, not necessarily. The increase in the financial costs of lending, resulting from the increase in interest rates, means that the costs of financing investment and increasing labour costs, materials, result in an average financial link at the reference price of 2021, and a significant increase in the time horizon of return.
PPAs as an alternative to auctions
Zbigniew Kinal from OZEOS calms those who either missed the auction offer or have not decided to sell green energy in this form. “An alternative to auctions and guaranteed contracts are the cPPA contracts that RES is currently operating. If you don't start the auction or win it, come to us. OZOES will help acquire a bankable, multi-year contract with a reliable contractor, explains the company’s president. OZOES has a lot of experience in energy and direct contacts to companies looking for PPA contracts to purchase energy.
How to proceed?
If we want to buy energy at auctions, we probably know what volume of energy is in our business circle. OZEOS offers free preparation of the energy profile. This way, every entrepreneur will know exactly how much energy should be contracted. To get an energy profile, you need to fill in a form and send the documents to OZEOS. The next step is to discuss the energy profile and propose a source or more often, renewable energy sources. OZEOS provides support to both RES sellers and purchasers. Thus, each party to the contract can be sure that its interests are properly represented. When OZEOS proposes sources of energy, it helps throughout the process to conclude cPPA contracts. In conclusion, the lack of participation or purchase in auctions does not mean that good business decisions can be made and funds saved. There are answers to the RES pages frequently asked questionsIf something about the cPPA agreement remains unclear, please contact us.