The Ministry of Energy has commenced a consultation procedure with respect to the introduction of the capacity market in Poland. 

The idea behind the concept is to ensure that end users have access to a reliable power system by creating incentives for investments in new power generation units and to modernize and retain existing ones. Power generators are to be paid for supplying power and for their readiness to supply power in the case of a power shortage in the national power system (capacity obligation). Auctions, on the basis of which the capacity market works, are to be conducted every four years before the planned supply of power and an additional auction is to be carried out one year before such supply. The winner of the auction is to sign a contract on the capacity obligation with PSE – the domestic TSO. All financing settlements resulting from such contracts are to be secured by the State Treasury. The first tender is planned at the end of 2017 for power supplies in 2021. According to the presented assumptions, capacity units which benefit from a support scheme or state aid will not be entitled to take part in the auction system.

The consultation procedure ends on 18 July 2016.