Cogeneration premium auction

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On June 8 this year the first auction for the cogeneration premium for the sale of electricity from high-efficiency cogeneration has started this year. New or significantly modernized cogeneration units with installed capacity from 1 to less than 50 MW may participate in the auction.

The maximum amount of electricity from high-efficiency cogeneration whose sales can be covered by the premium is 12 TWh, while the maximum value of this premium is over PLN 2 billion. For electricity producers located outside of Poland, the maximum value of the premium is over PLN 103 million (with a maximum amount of 0.6 TWh of electricity).

The auction is won by auction participants who offered the lowest amount of cogeneration premium (i.e. subsidies to the energy sold from high-efficiency cogeneration), whose bids together did not exceed 100%. value or quantity of electricity specified in the auction announcement, and 80% the amount of electricity covered by all offers submitted. Such a solution – the so-called competition enforcement rule – rejects 20% most expensive offers and aims to eliminate the possibility of winning the auction by all its participants.

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