Poland’s offshore wind energy sector loses investors amid political uncertainty
Investors are fleeing Poland’s offshore wind energy market following rumours of lower anticipated funding in the sector, Polish press reported, June 2013.
“Uncertainty has caused Iberdrola and EDPR to announce that they’re abandoning projects in Poland,” Polish Daily Puls Biznesu reported, June 17.
Spanish energy giant, Iberdrola, has indicated that it may sell its land-based wind farms in Poland. The company also announced that it is likely to retract a planned investment of PLN 24 billion in the sector. The decision follows a failed permit application for building artificial islands off Poland’s coast, as well as information that Portugal’s energy major, EDPR, was also stepping away from a similar project.
So far, the government has granted 22 permits to build artificial wind farm islands. However, only seven of these permits were followed up by initial construction payments. Companies, which started this procedure, include state energy giant PGE, renewable energy company Polenergia, Polish oil incumbent PKN Orlen, and Polish entrepreneur Jan Kulczyk.
New renewable energy legislation is to be completed in the next two months,Polish daily Rzeczpospolita reported last week. However, the outlook for the offshore wind sector is negative. Funding is set to be politically driven. According to media reports, Polish politicians have indicated that wind power will not receive financial support, which was previously thought to reach PLN 2.9 billion annually, by 2020.
It also seems that funding decisions are being delayed. This is despite a removal of financial and time barriers by the government, which changed legislation to ensure that artificial islands could be built on Poland’s coast.