*HVDC Line Plan Poland
Opportunities and Challenges in Poland’s Offshore Wind Market
Probably the most pivotal moment in Poland’s journey toward offshore wind development came with the enactment of the Offshore Wind Act in 2018. This legislation laid the foundation for the sector by establishing a clear legal framework for permitting processes and support mechanisms, including Contracts for Difference (CfD) in competitive auctions. With this regulatory groundwork in place, Poland took a significant step toward unlocking its offshore wind potential.
In 2019, the government launched its inaugural offshore wind auction, inviting developers to propose projects with a combined capacity of up to 4.6 gigawatts (GW). This auction marked a crucial milestone, showcasing Poland’s commitment to achieving its renewable energy targets. The response from developers and investors was overwhelmingly positive, reflecting strong confidence in the potential of Poland’s offshore wind market. Leading international renewable energy companies partnered with Polish developers, submitting competitive bids to secure project rights. The auction results exceeded expectations, with several projects awarded at favorable prices, signaling a promising future for offshore wind in Poland.
Opportunities on the Horizon
Since then, development momentum has continued. Developers have been actively progressing with project planning and development activities, conducting feasibility studies, environmental assessments, and engaging with stakeholders. The Polish government has also been proactive in facilitating the necessary infrastructure and grid connections to support energy exports. This is particularly important as Poland’s inland distribution grid, which still requires major investments, is critical to realizing the full potential of offshore renewables in the Baltic Sea.
The scale of investment in grid infrastructure is immense. The largest energy companies in Poland, including PGE, Tauron, Enea, Energa, and E.ON, plan to invest PLN 130 billion by 2030. Additionally, Polish Power Grids (PSE) is set to invest over PLN 64 billion by 2034, with plans to construct 4,850 km of 400 kV lines and establish or modernize 138 power stations. This is PSE’s largest investment plan in history, aiming to enable the transfer of approximately 18 GW from offshore wind farms and onshore renewables.
Challenges on the Path
However, despite these promising developments, significant challenges remain. One of the primary obstacles for renewable energy developers in Poland is access to the electrical grid. Without substantial further investment, the energy transition may struggle to maintain its current growth. The Supreme Audit Office (NIK) has raised concerns about the national grid’s condition and readiness for the next decade of development. Over 50% of Poland’s power lines are more than 30 years old, complicating the integration of renewable energy sources. The quality of transmitted energy is declining, transmission losses are increasing, and modernization efforts are lagging.
The NIK report also highlighted delays and partial implementation of legal changes by state authorities intended to comply with EU regulations, such as REPowerEU and Fit for 55. These delays have further complicated grid development and the broader energy transition.
Key Infrastructure Projects
Several key transmission line investments are currently ongoing in Poland:
- Trębaczew-Joachimów-Wielopole line: A 110-kilometer double-circuit 400 kV line in southern Poland, part of a broader initiative to modernize Poland’s longest 400 kV network. Completion is expected by 2028.
- Dunowo-Żydowo Kierzkowo-Piła Krzewina line: A 98-kilometer high-voltage line in northern Greater Poland, replacing a 220 kV line built in the 1970s, with completion expected by the end of 2026.
- Pomerania lines: PSE is also securing environmental permits for two more lines running south from the Choczewo station, part of a broader plan to build four 400 kV networks in Pomerania to handle power from offshore wind farms.
- Poland-Lithuania connection: Plans are underway for a new connection between Poland and Lithuania, initially intended as an underwater DC line but now being considered as a land-based line due to higher-than-expected costs.
One particularly innovative project is the construction of Poland’s first land-based HVDC (High Voltage Direct Current) line. This 720 km line will connect the north and south of Poland, allowing for rapid energy transmission from new northern generation sources, like offshore wind farms, to industrial centers in Silesia without overloading the grid. The project, expected to cost up to PLN 18 billion, is slated for completion by 2034.
Conclusion
While Poland’s offshore wind market is brimming with potential, realizing this promise requires addressing significant infrastructure challenges. The ambitious investment plans outlined by energy companies and grid operators are crucial, but the pace of development must keep up with the growing demand for renewable energy. As Poland continues its transition away from coal, the successful integration of offshore wind into the national grid will be a key determinant of its future energy security and sustainability. Ensuring a cohesive legal framework and timely investments in grid infrastructure will be vital for the country to fully capitalize on its offshore wind opportunities.
Mateusz Dowgalec is the Country Managing Director for JUMBO Consulting Group Poland, a highly specialised advisory offering strategic services and project delivery consultancy for offshore wind, offshore transmission systems and energy island projects, covering the entire project lifecycle from early development, procurement, construction to O&M. Headquartered in Denmark, JUMBO Consulting Group’s services are founded on deep sector knowledge and delivery of contractual and commercial solutions within its core disciplines, development services, supply chain development, category-, procurement- and contract management and advisory.