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Solar Energy

Poland’s renewable energy trading market soars

May 6, 2025 ryansheehanrts

Last week, the international renewable energy trading platform LevelTen Energy published findings on the current state of the energy market in Poland. The report, titled ‘Poland’s Renewable Energy Awakening,’ was compiled by energy analysts based on proprietary insights. The comprehensive report also provides background information on the current state of clean energy in Poland.

Also interesting: Michal Marona of SolarEdge: “A market with lots of potential”

Coal loses 11% in 12 months

Decarbonisation is progressing rapidly in a country once dominated by coal-fired power generation. According to the report, coal accounted for only 57% of Poland’s electricity generation in 2024, a decline of 11% within 12 months. In 2015, coal-fired power still accounted for 87% of Poland’s electricity generation. At the same time, wind and solar power supplied a substantial 26% of total electricity in 2024, and the trend will continue. Therefore, the trading platform LevelTen sees the increasing demand for power purchase agreements (PPAs) as a key driver for transactions involving renewable energy plants.

Also interesting: Patrik Danz of IBC Solar: “It’s a very exciting market”

Poland eases rules for renewables, but bottlenecks persist

Poland is reducing restrictions on renewable energies to further accelerate expansion. Nevertheless, challenges remain, such as expanding the electricity grid to accommodate numerous decentralised generation facilities and increasingly fluctuating generation. According to the report, Poland’s main transmission system operator, Polskie Sieci Elektroenergetyczne (PSE), is increasingly rejecting grid connection applications from renewable energy plants. LevelTen speaks of around 6,000 connections being rejected by the operator between 2015 and 2021, preventing 30 GW of new renewable power from coming into operation. Other criticisms include the lengthy approval process and challenges in financing renewable energy projects. However, this primarily affects wind power, suggesting that photovoltaics should have an easier time. However, from our regular expert interviews, we know that PV bureaucracy and grid connection problems are both slowing down rapid expansion in recent years.

Also interesting: Caroline White of SegenSolar: “Poland is emerging as a key market”

PPA offer more attractive pricing than auctions for renewable energy operators in Q4 2024

According to the new report the most recent auction held in December 2024, photovoltaic power plants secured prices ranging from €57.50/MWh to €78.60/MWh, while wind turbines were awarded premiums between €35/MWh and €41.10/MWh. In comparison, LevelTen Energy’s price index for Q4 2024 reveals that power purchase agreements offer significantly higher prices: €78/MWh for photovoltaics and €94.50/MWh for wind energy. This comparison clearly shows that, for plant operators, PPAs present the more lucrative option compared to auction prices.

Tobias Schuessler of Goldbeck Solar Polska: “The demand for solar parks is rising”

Poland mmerges as a strategic PPA market with high CO₂ savings and first-mover advantage

The report finds that power purchase agreement providers in Poland benefit from a first-mover advantage, thanks to the country’s still limited share of renewable energy in electricity production. Electricity buyers also stand to gain – especially in terms of climate impact. Because Poland’s energy mix still remains heavily reliant on coal, switching to carbon-neutral electricity via PPAs can lead to significantly higher CO₂ savings per megawatt-hour than in countries like Sweden, where the energy mix is already relatively clean.

Bartosz Majewski of Menlo Electric: “We are navigating a turbulent market”

Growing demand and economic expansion make an interesting market for PPAs

With a growing economy and increasing demand for clean energy, Poland represents a promising market for long-term PPAs. These agreements offer not only CO₂-free electricity but also stable, predictable pricing over extended periods. For the country’s many energy-intensive and manufacturing companies, PPAs provide a cost-effective and sustainable way to secure large volumes of clean power.

Positive outlook for Poland’s PV project market

Poland’s photovoltaic project market is poised for significant growth, according to LevelTen Energy. As the country accelerates its renewable energy expansion, a surge in market activity is expected – particularly in the form of project and corporate mergers, acquisitions, and sales. Analysts link this momentum to supportive EU funding initiatives like the “Green Deal” and the “Fit for 55 package”, which are improving financing conditions for clean energy investments. Additionally, Poland’s growing electricity demand is driving the need for clean energy solutions, further boosting the appeal of large-scale PV projects. LevelTen observed a rise in merger and acquisition (M&A) activity in 2024 and expects this trend to continue through at least 2025, supported by a more stable regulatory environment and the accelerated implementation of new legislation.

Grzegorz Rabsztyn: “The EIB is playing a key role in supporting renewables and grid development”

M&A Deals poised to drive Poland’s energy transition

Mergers and acquisitions are expected to play a pivotal role in accelerating renewable energy project deployment and advancing Poland’s progress toward climate neutrality, according to the report. Pieter van der Meulen, Senior Manager of Developer Engagement at LevelTen Energy explains: “The Polish renewable energy market is evolving at a rapid pace. With regulatory barriers steadily decreasing, we anticipate a surge in opportunities for both developers and corporate buyers. Regulatory reforms, government incentives, and a growing power purchase agreement market are creating the foundation for a new wave of investment across Poland’s renewable energy sector.” (mg)

The full report is available here

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Solar Energy

From niche to necessity – the PV-boom in Central and Eastern Europe

April 15, 2025 ryansheehanrts

Early development with political support

Between 2010 and 2015, some Central and Eastern European countries saw their first waves of solar expansion, largely due to government support programmes. Countries like the Czech Republic and Bulgaria introduced attractive feed-in tariffs, sparking a PV boom, though this subsided once the subsidies ended. In Poland, expansion was initially modest due to a lack of national support programmes and the dominance of coal in the energy market. In the Western Balkans and Ukraine, the solar sector also began to take shape, mainly through large-scale projects or pilot plants.

Also interesting: Stellantis decarbonises polish plants with solar power and storage

Greater momentum from 2016 after EU integration and lower costs

Starting in 2016, falling module prices, growing environmental awareness and stronger integration with the EU triggered new momentum across many Central and Eastern European countries. Poland became one of the fastest-growing PV markets in Europe, bolstered by the subsidy programme “Mój Prąd” (“My Electricity”), which helped households build solar installations. Hungary and Romania increased investments in solar parks, while Slovakia and Croatia developed a decentralised market with small to mid-sized installations. Even non-EU countries including Ukraine advanced their solar expansion, sometimes assisted by foreign investment.

Also interesting: Grzegorz Rabsztyn: “The EIB is playing a key role in supporting renewables and grid development”

PV key to energy plans in many countries

In 2025, photovoltaics are by now well-established across most countries in the region. Poland leads with over 20 gigawatts of installed PV capacity by the end of 2024, followed by Romania, Hungary and the Czech Republic. Large-scale systems are increasingly being developed in Serbia, North Macedonia and Albania, often in partnership with Western or Chinese investors. The PV boom is driven by not only lower costs for technical components and EU support measures, but also the desire for greater energy sovereignty in response to the energy crises of 2022 and 2023. Decentralised energy systems have proven more resilient than centralised equivalents in crisis situations. In addition, increasing pressure from the EU to phase out fossil fuels is accelerating the push for decarbonisation.

Also interesting: PV wholesaler SegenSolar joins growing wave of companies entering Eastern European markets

Energy future with expansion potential and challenges

The future is promising for photovoltaics in Central and Eastern Europe. There is significant potential in terms of available land, high solar radiation, in particular in the south, and technological advances such as agri-PV and energy storage solutions, all of which offer opportunities for regional energy supply. Nevertheless, challenges remain: bureaucratic hurdles, unclear permitting processes and partially outdated power grids are slowing expansion, and there is a particular need to modernise the electricity grids to reliably integrate decentralised PV systems.

Market gaining momentum

Over the past fifteen years, photovoltaics in Central and Eastern Europe have developed from a marginal phenomenon into a key technology. Despite regional differences, the trend is clear: solar energy will play a major role in the region’s future climate-neutral and independent energy supply. In the end, photovoltaics offer not only tremendous ecological benefits but also substantial economic potential – both for the PV industry and for consumers. (mg)

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Solar Energy

Utility-scale storage market set to increase fivefold by 2030

December 11, 2024 ryansheehanrts

There are a number of drivers for the installation of large-scale batteries in Central and Eastern Europe. These include the increasing renewable energy integration, grid stability, energy security & independence goals, EU regulation & support, regulatory & market developments, electricity price volatility, carbon reduction goals & coal plant phase out, electric vehicle growth and grid relief.

In addition, flexibility assessments will be mandatory for transmission system operators (TSO) in the EU from 2026. By June 2026, they must assess system flexibility needs, set national targets for non-fossil flexibility, and quantify energy storage needs for inclusion in National Energy and Climate Plans (NECPs). “This is a clear signal to investors and developers, funding will help kickstart emerging storage markets,” emphasized Eliza Stefan, Sales Manager BESS for Central & Eastern Europe, Jinko EES.

Strong financial incentives

In addition to high energy prices, there are strong financial incentives for the use of large-scale battery storage. For example, the approved EU State Aid for Eastern Europe since 2022 in Hungary and Poland adds up to 1.2 trillion euros each; in Bulgaria to 0.75 bn euros, in Romania to 0.375 bn €, in Slovenia to 0.2 billion euros and in Lithuania to 0.2 billion euros.

Among other things, Romania is introducing capacity auctions for large-scale battery storage from 2026 and is already relying on contracts for difference (CfD). Poland is also relying on capacity market auctions, but also on tax incentives, to promote large-scale battery storage. Up to 45% of project costs of utility-scale storage are covered by grants in Hungary, in addition to a CfD scheme and modern grid connection rules. Lithuania is also promoting modern grid connection rules and large-scale BESS support. The expansion of large-scale battery storage in war-torn Ukraine is being heavily financed by international financial donors, and import duty exemptions are also in place.

Strong growth – but still also limitations

Overall, the large-scale battery storage market in six key countries in Central Europe is expected to grow by a factor of five by 2030. Poland is in the lead with an increase in installed large-scale battery storage capacity from around 350 MWh to 4,000 MWh, followed by Romania with an increase to around 3,750 MWh and Lithuania with around 3,500 MWh in 2030. The Hungarian large-scale battery storage market is estimated to be around 3,300 MWh by then, the Bulgarian market around 3,000 MWh and the Ukrainian market around 2,750 MWh.

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However, regulatory and market barriers, grid infrastructure limitations and limited financial incentives are still hurdles, as Eliza Stefan pointed out. In Romania, for example, there are no clear connection rules for utility-scale BEES projects and delays in processing grants hinder rapid development. In Bulgaria, there are also no clear regulatory for C&I BESS storage and the future plans for frequency regulation are underdeveloped. (hcn)

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Solar Energy

CISOLAR & GREEN BATTERY 2024

November 13, 2024 ryansheehanrts

Strong financial incentives

Strong growth – but still also limitations

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Solar Energy

Eastern Europe – Increasing focus on integrated PV development

October 21, 2024 ryansheehanrts

One of the fastest growing photovoltaic markets in Europe is currently Romania. In 2023, systems with a capacity of around 1 gigawatt (GW) were installed, an increase of over 300 percent compared to the previous year. At the end of 2023, solar power systems with a capacity of almost 3 GW had been installed in Romania. This figure is expected to double by the end of 2025.

According to the National Institute of Statistics, energy production from PV systems rose by more than 60 percent to 2.57 billion kilowatt hours between January and August of this year alone. High levels of solar radiation, falling costs, various incentive programs and the desire for greater energy independence and climate protection are driving the expansion of photovoltaics in the EU country.

Already over 200,000 prosumers in Romania

The Romanian Photovoltaic Industry Association (RPIA) currently has over 60 companies as members, including German project planners such as BayWa r.e., as Policy Officer Irene Mihai reported. More than 200,000 prosumers in Romania generate some of their own electricity using solar power and are increasingly using battery storage.

Also see: Central and Eastern Europe increasingly in the solar gigawatt class

PV systems on commercial buildings and solar parks are also on the rise. In the second week of October alone, the energy regulatory authority ANRE approved licenses for the commercial use of solar park power generation capacities with a total output of 62 megawatts (MW).

Expansion of PV production must be flanked

However, the rapid expansion of photovoltaics and wind power is creating a number of challenges, as is also the case in other regions. “Grid capacity and grid connections are one of the biggest hurdles for the further expansion of photovoltaics, not only in Romania,” says Mihai.

Also see: Market moves up and down, generally with good prospect

This must be accompanied by the expansion of battery storage, demand-side management (load control), the promotion of energy communities, power purchase agreements (PPAs) and the reduction of bureaucracy, as other industry representatives emphasized at the CISOLAR & GREENBATTERY 2024 conference (October 15-17, 2024) in the Romanian capital.

Karl Moosdorf

Discussion panel at CISOLAR & GREEN BATTERY 2024 in Bucharest: Hans-Christoph Neidlein (pv Europe), Gabriel Avacaritei (Energyomics), Bianca Dragusin (Keno Energy) v.l.

Among other things, regulations for the implementation of PPAs and large PV battery projects, as well as a reform of the double grid fee for storage projects and fewer bureaucratic hurdles for energy communities (as actually provided for by EU law) are urgently needed, it was stated at the three-day event (October 15 to 17).

Moldova relies on resilience and renewables

Carolina Novac, Secretary of State in the Moldovan Ministry of Energy, made similar comments. From 2023, the small country will be completely independent of Russian gas supplies for the first time. By 2025, Moldova will also no longer be dependent on electricity supplies from a major power plant in the pro-Russian separatist region of Transnistria. The expansion of the country’s own renewable energy supply, the expansion of the energy infrastructure and the increase in energy efficiency played an important role in this, Novac emphasized.

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According to the National Energy and Climate Plan (NECP), greenhouse gas emissions are to be reduced by 68.6 percent by 2030, while the share of renewable energies in total energy consumption is to be increased to 27 percent and in the electricity mix to 30 percent. Primary energy consumption is to be limited to under 3,000 kilotons of oil equivalent (ktoe) and final energy consumption to under 2,800 ktoe. The potential of wind energy for electricity generation from renewable energies is estimated at around 20.8 GW, with photovoltaics at 4.7 GW, plus 840 MW of hydropower and 850 MW of biomass. In 2023, wind turbines with 132.7 MW and photovoltaic systems with 76.9 MW will be installed.

Focus on an integrated approach

“We are taking an integrated approach to expanding the renewable energy supply,” emphasized Novac. This includes, on the one hand, the recently launched first tender for wind and solar projects, coupled with 15-year PPAs and CFDs (Contracts for Differences), and, on the other hand, the promotion of storage projects, energy communities and active energy consumers, biogas and energy generation from waste for dark and cloudy periods and peak times, as well as the expansion of the electricity grid.

Also see: EBRD supports renewables in Romania and Moldova

An important role is played by the expansion of the grid connection with Romania and thus with the EU. These plans are also influenced by the country’s increased European orientation, which a narrow majority of voters in an EU referendum on October 20 voted in favor of, as it stands now. (hcn)

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Solar Energy

Central and Eastern Europe increasingly in the solar gigawatt class

August 26, 2024 ryansheehanrts

New PV systems with a capacity of 4.6 GW were installed in Poland in 2023, with installed capacity rising to over 15 GW. However, at 100 megawatts (MW), the market only grew slightly compared to the previous year (change in the support scheme for private households, falling electricity prices) and increasingly shifted to larger rooftop systems and solar parks. Overall, further stable growth in photovoltaics is expected in Poland.

Hungary was the second strongest solar market in Central and Eastern Europe last year. PV installations increased by 1.6 GW (plus 45%, 2022, 1.1 GW) and installed capacity climbed to 5.6 GW. Challenges for further growth are grid capacities and the design of incentive programs for PV storage systems for private households under the new “gross metering” subsidy regime.

First tenders for PV storage systems in Bulgaria

The solar market in Bulgaria has tripled in the past three years. Installed PV capacity rose from just over 1 GW at the beginning of 2021 to almost 3 GW at the end of last year. In 2023, the PV expansion amounted to around 1 GW. In the summer of 2023, the share of photovoltaics in the electricity mix was over 40% in some cases, albeit only for a few hours. With an average annual sunshine duration of between 2,000 and 2,600 hours in various regions, the country offers high solar irradiation potential.

The Bulgarian PV market is strongly characterized by large-scale systems. Due to the high energy prices, the first major corporate PPAs (Purchase Power Agreements) were concluded last year. The first combined tendering round for renewable generation plants (1.995 GW) with combined energy storage (350 MW/700 MWh) was launched in Bulgaria at the beginning of this year. The dynamic growth of the Bulgarian PV market, which is expected to continue, depends not only on progress in grid expansion but also heavily on increased investment in energy storage technologies.

Growth of 300 percent in Romania

In terms of volume, the photovoltaic market in Romania is roughly on a par with Bulgaria. Around 2.9 GW of solar power capacity was installed there at the end of last year. PV installations also increased by around 1 GW in 2023, an increase of over 300% compared to the previous year. The main drivers of this strong growth are private households and commercial enterprises, but larger systems are also growing strongly. At the end of October 2023, for example, the country’s largest solar park to date was inaugurated in Ratesi with 155 MW and a forecast annual electricity yield of around 220 gigawatt hours (GWh). Romania also scores with 1,900 to 2,400 hours of sunshine per year.

Also see: Romania – R.Power expands PV projects

Backing is also coming from politicians. The Romanian government has announced an increase in the target for the expansion of photovoltaics to 8.3 GW by 2030 as part of the National Energy and Climate Plan, of which 2.5 GW is for roof systems and 5.8 GW for solar parks. Although this is still below the EU targets for the expansion of renewable energies, it is an important step. In addition, the approval procedures for solar parks with an area of less than 50 hectares and an output of up to 42 MW have been simplified, the grid connection procedures for solar installations up to 400 kilowatts (kW) have been streamlined and direct marketing options for surplus electricity for installations of this size have been expanded. An important challenge for the further growth of photovoltaics in Romania is also the expansion of the grid and its financing.

Revival of PV in the Czech Republic

The Czech Republic is also almost back in the GW club – after 13 years. New PV systems with a capacity of 970 MW were installed in 2023. The total installed PV capacity climbed to 3.5 GW. The Czech solar market thus grew by 236% compared to the previous year. More than 170,000 PV systems are now feeding electricity into the grid, including more than 150,000 on the roofs of single-family homes. The Czech Republic already experienced a solar boom in 2009 and 2010, with more than 2 GW added in both years.

The Czech solar market has been recovering since 2021: administrative barriers were removed, new subsidy programs were launched – and the energy crisis triggered by the Russian invasion of Ukraine increased demand for PV, especially in the building sector. Most PV systems were also installed on rooftops in 2023. This trend is expected to continue, but larger commercial solar roofs and solar parks are also increasingly being built. A further PV expansion of over 10 GW is forecast by 2030.

The PV market is also picking up in Slovakia

With a total installed capacity of just over 0.7 GW of PV, Slovakia is below the EU average. However, the solar market is also picking up there. PV installations amounted to 220 MW in 2023, primarily private and commercial rooftop systems. A newly launched subsidy program for the purchase and installation of PV systems also had an impact here. It is expected that 300 MW of new solar power systems will be installed in 2024.

One of the factors holding back the construction of solar parks in Slovakia is the high grid connection costs that operators have to bear. In a medium scenario, SolarPower Europe expects the installed PV capacity in Slovakia to climb to 2.6 GW by 20230. However, the National Climate and Energy Plan (NECP) only envisages a total solar power capacity of 1.4 GW in 2030.

Transparent grid access in Estonia

The solar market is also developing dynamically in the Baltic states, driven by the desire for greater energy independence. In 2023, Estonia surpassed the 1 GW mark for total installed PV generation capacity with 1.1 GW. The installed solar power output per capita in Latvia climbed from 601 watts (W/c) to 803 W/c. This put Latvia in 5th place in the European ranking, just behind Belgium (810 W/c) and ahead of Spain (748 W/c). Auctions for renewable energies have been in place since 2022 and several new solar parks in the double-digit MW range were put into operation last year.

The transparent design of grid access in Estonia is considered exemplary. The available capacities are displayed on the grid operator’s website in real time. In addition, the first tenders for large battery storage systems to stabilize the electricity grid were launched in 2023. According to the NECP, the installed PV capacity is set to increase to 1.2 GW by 2030. However, SolarPower Europe estimates much stronger growth to 4.8 GW by 2030 in a medium scenario.

Lithuania relies heavily on prosumers

PV systems with a cumulative capacity of 1.1 GW were also installed in Lithuania by the end of 2023. The country is also in the process of transforming its energy supply. By 2030, the country aims to cover 100% of its electricity demand from renewable sources and increase its installed PV capacity to 5.1 GW. There is a strong political focus on promoting prosumers, including in the commercial sector. From 2015 to 2023, around 80,000 prosumers were connected to the grid, with a combined PV capacity of 825 MW. In future, energy communities are also to be increasingly facilitated.

Also interesting: Lithuania – pilot projects with solar noise barriers

The conversion of the billing system from net metering to net billing is also currently being discussed in Lithuania. Energy storage systems for households are also to be increasingly promoted and expanded, as are large hybrid systems (PV or wind power with energy storage). The approval process for solar parks has been streamlined and the grid access procedure has been reorganized. One challenge, however, is the currently unclear application of feed-in curtailment for solar and wind parks to stabilize the grid.

High energy prices are driving PV in Latvia

Photovoltaics is still a tender plant in Latvia, but this could soon change. Just 300 MW of PV capacity was connected to the grid at the end of 2023 – but still three times as much as in the previous year. Due to high energy prices, low-cost photovoltaics are increasingly attracting the interest of investors in Latvia. The realization of the first larger solar parks with 400 MW and 155 MW was announced in 2023. The first floating PV system with an output of 2 MW was also completed in a sewage treatment plant. In any case, the latest European Market Outlook for Solar Power forcasts that photovoltaics will play an increasingly important role in achieving the government’s target of covering 50% of energy requirements from renewable sources by 2030. (hcn)

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