Poland’s power market revenue cap—what does it hold for power generation assets?

In response to the record-high prices caused by the ongoing commodity crisis, the Polish government has introduced a set of price caps, currently due to last until the end of 2023. Deviating from the EU framework, the government has set the revenue caps at a level below 180 EUR/MWh and made them technology specific. This will have a dramatic impact on the revenues of energy generators and affect the business cases of both planned and operating assets. At the same time, the complexity of the proposed legislation leaves high uncertainty about the consequences for individual projects.

Due to high demand, we have turned a public webinar with Dentons’ energy team into a report that you can access, featuring a detailed explanation of the new legislation and its impact for renewable asset owners.

This report explores the following questions:

    • How are the Polish government’s caps different from the rest of the EU’s?
    • How will long-term asset profitability be affected by these government caps?
    • What are the implications of an increase in investment reluctance on the development of renewables?

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