In this webinar recording, we present a detailed analysis of the CfD structure and discuss how the revenues of renewables assets can be optimised.
The Polish renewables market is currently experiencing rapid growth. We expect installed renewables capacity to reach 23 GW by 2025, compared to 6 GW of wind and close to no solar only two years ago. Much of this has been fuelled by the CfD auction mechanism, which has awarded contracts to over 10 GW of onshore wind and solar capacities since the first auction in 2016. With auctions set to continue until 2027 and possible rates of return higher than in more mature European markets, Poland remains an attractive market for investments in renewables.
The Polish subsidy mechanism itself is complex and retains several components of merchant exposure. This is in part a downside, exposing investors to cannibalisation risk. At the same time, investors can benefit from the hedge of a CfD contract while gaining an upside from exposure to wholesale market prices, which are currently at record highs across Europe.
To watch the recording and view the slides of our webinar, please use the link below.