Assessment of the Polish Act on the Capacity Market

The report evaluates the Polish Act on the Capacity Market, concluding that while it is likely to be approved by the European Commission due to alignment with EU State aid guidelines, it may result in higher costs for final customers and primarily benefit existing coal-fired power plants. Key improvements over previous drafts include the removal of auction 'baskets' and the introduction of preferences for low-carbon technologies, though the author argues these may not be sufficient to substantially reduce the overall emission factor of the Polish Power System.

• The final Act is likely to be approved by the European Commission because it appears to align with the "Guidelines on State aid for environmental protection and energy 2014-2020" (EEAG), following amendments made during pre-notification contacts.
• The removal of auction 'baskets'—which previously allowed for different clearing prices for new versus modernised units—reduces the risk of investing in new coal-fired units but may increase costs for final customers since existing amortised units will receive the same remuneration as new installations.
• The Polish Ministry of Energy projects that the removal of separate auction baskets could increase costs by PLN 1 bn (approx. EUR 250 mln) in the first delivery year (2021), with the total capacity levy for the first main auction in October 2018 projected at around PLN 6.4 bn (approx. EUR 1.5 bn).

APA

ClientEarth (2018). Assessment of the Polish Act on the Capacity Market. https://www.clientearth.org/media/yp3j45d5/assessment-of-the-polish-act-on-the-capacity-market-ce-en.pdf

Chicago

ClientEarth. Assessment of the Polish Act on the Capacity Market. 2018. https://www.clientearth.org/media/yp3j45d5/assessment-of-the-polish-act-on-the-capacity-market-ce-en.pdf.

Wikipedia

{{cite report |author=ClientEarth |title=Assessment of the Polish Act on the Capacity Market |date=February 2018 |url=https://www.clientearth.org/media/yp3j45d5/assessment-of-the-polish-act-on-the-capacity-market-ce-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{clientearth2018assessment, author = {{ClientEarth}}, title = {{Assessment of the Polish Act on the Capacity Market}}, institution = {ClientEarth}, year = {2018}, month = feb, url = {https://www.clientearth.org/media/yp3j45d5/assessment-of-the-polish-act-on-the-capacity-market-ce-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }