More offshore windmills could mean energy prices halved

Offshore wind power could reduce electricity prices on the market, according to a recent analysis by the Polish Wind Energy Association (PWEA). 18 GW from offshore wind power could reduce energy prices by up to 50 per cent.

‘The successful conduct of the auction, and thus the proper design of the support system for offshore investments from the so-called phase II, will pay off,’ – argued Janusz Gajowiecki, President of PWEA, during the press conference ‘Offshore – it pays off’.

According to PWEA, the energy potential of the Polish part of the Baltic Sea is considered to be one of the largest in Europe, reaching up to 33 GW. Approximately 30 per cent of the Baltic Sea’s offshore potential has been identified in the Polish maritime areas. Its utilisation would allow almost 60 per cent of Poland’s electricity needs to be met. The offshore wind projects currently being prepared for implementation or entering the construction phase, from the so-called phase I – represent about 5.9 GW of renewable, zero-emission generating capacity (assumed to be implemented by 2030).

– Experts have calculated that if we introduce 18 GW of offshore energy into the energy mix, we will reduce the price of energy by up to 50 per cent, compared to the price we would get if only 5.9 GW were introduced, reported PWEA President Janusz Gajowiecki.

As calculated by PWEA experts in the ‘Offshore – it pays off’ analysis, in the scenario envisaging the development of offshore wind power plants (OWE) to 5.9 GW, the cost of electricity purchase by end consumers in 2026 to 2040 will amount to PLN 1033.3 billion, and in the case of the scenario of including 18 GW from OWE by 2040, the cost will amount to PLN 841.9 billion – the level of savings amounts to over PLN 190 billion.

Offshore wind development and the complexity of the projects require costly investments. According to PWEA’s experts, dedicated support schemes for these projects in the initial phase are crucial, which, however, with the appropriate outlays, will ensure savings and contribute to lower electricity bills for end consumers.

According to PWEA’s analysis, in the estimated period from 2025, with support levels of between PLN 550 – 600/MWh, the savings in electricity purchase costs for end users with 18 GW of installed offshore capacity could amount to between 60 and 70 billion compared to the costs estimated for a system with 5.9 GW offshore.

Source: PortalMorski.pl