Support for energy producers in the form of the capacity market in the first year may cost up to PLN 7.45 billion, however mainly gas power plants are the recipients. For Enea and Energa "there will be leftovers". Energa has repeatedly emphasized that payments from the capacity market are necessary for the profitability of the Ostrołęka C project.
On August 6, the Ministry of Energy published a draft regulation on the parameters of main three auctions of the capacity market for delivery periods in the years 2021-2023. As reported by Biznes Alert, the support of producers in the form of the capacity market in the first year can cost up to PLN 7.45 billion. In the meantime, the Ministry of Energy claims that the actual costs will be close to 4 billion.
It is an enormous cost that the Polish society will incur, households will pay for the capacity market about PLN 100 annually. It is no secret that this mechanism was to be used in Poland to support coal energy, including the construction of new power plants, such as Ostroleka C. In its official communication Energa has repeatedly emphasized that payments from the capacity market are necessary for the profitability of Ostrołęka C power plant, experts estimated that it could account for up to 1/3 of the plant's revenues.
The closer to the first auction in December, the more voices appear that Ostrołęka C will not take advantage of the capacity mechanism.
According to the quoted Christan Schnell’s article, the capacity market will primarily support gas-fired power plants and cogeneration plants. As far as coal is concerned, in his opinion, first of all, existing blocks in Kozienice (ENEA), Opole (PGE), Turów (PGE) and Jaworzno (TAURON) will benefit. The largest beneficiary would be PGE, for Tauron, Enea and Energa, owners of the Ostrołęka C power plant project, there will be leftovers.
Andrzej Rubczynski from the Energy Forum draws attention to another problem - there is a risk that there will be not enough money to cover the costs of adjusting to BAT conclusions. BAT (Best Available Technology) are the new, stricter limits for emission of dangerous pollutants such as dust, sulfur oxides or mercury, introduced to protect the environment and human health and life. Adaptation to the BAT standards requires retrofitting of a power plant, the cost of which may fluctuate around PLN 500-600 million. These standards will have to be met by Ostrołęka C.
Rafał Zasuń from Wysokie Napięcie is very skeptical about the support from the capacity market for Ostrołęka C. In April 2018 this portal underlined that 'apart from the capital costs of construction for the profitability of a coal power plant, three parameters would be crucial - the price of coal, the price of electricity sold on the wholesale market and the price of CO2 emission rights. (...) If, for example, Ostrołęka works 3 thousand hours per year and pays PLN 13 for gigajoule of coal, then capacity market would have to get over PLN 1000 for kW or PLN 1 billion a year! This means that Ostrołęka would have to "eat" the lion's share of the power budget declared by the government, which will amount to approximately PLN 2.4 billion a year on average for 10 years. Meanwhile, from a decision issued several days ago by the European Commission approving the capacity market in Poland, it appears that the maximum price per kilowatt will amount to PLN 446. To fit in this limit, Ostrołęka C would have to work 5,000 hours per year and buy coal at PLN 5.5 per GJ. Whoever wants, let him believe...'
Ostrołęka C still has no financing or insurance - the most important banks and insurers announce that they quit their involved in coal projects harmful to health, environment and climate. It will be a permanently unviable project, detrimental to both state-owned companies that are developing it, and at the same time will result in higher prices for energy consumers, who will have to cover the costs of coal-burning fantasies about the new power plant from their own pockets.