Energy-intensive companies in Poland could gain easier access to cheaper green electricity thanks to a proposed „correlation mechanism” that directly links industrial plants with local renewable energy sources via a dedicated auction system. The idea, put forward by RE-Source Poland Hub, aims to reduce electricity bills through lower transmission charges and long-term power purchase agreements, while also supporting the development of new wind and solar farms.
The mechanism is based on corporate PPAs (cPPAs) but would be organized by the Energy Regulatory Office (URE) through auctions similar to those used for renewable energy support. Existing factories would declare their demand and maximum price for electricity, while new industrial investors would gain access to maps of available grid connection points, allowing them to locate plants closer to generation sources. The state would act as a guarantor, covering the risk via a contract-for-difference mechanism only if the buyer withdraws from a long-term agreement.
Henryk Kaliś, president of the Chamber of Industrial Energy and Energy Consumers (IEPiOE), told WNP that the industry sees a chance in the development of renewable energy, especially onshore wind, to reduce costs and improve competitiveness against foreign suppliers. He noted that the current market pricing is heavily influenced by coal-fired generation and CO2 emission costs, making direct local sourcing crucial.
How the correlation mechanism works
Under the proposal, existing industrial plants would submit their electricity demand and a maximum acceptable price to URE, but only for power from renewable sources that could be built nearby. New investors would additionally receive grid connection information to choose optimal locations. The goal is to co-locate generation and consumption within the same main supply points (GPZ), significantly cutting transmission fees.
Szymon Kowalski, vice-president of the Polish Wind Energy Association (PSEW) and active in RE-Source Poland Hub, explained that the concept emerged during work on the so-called grid law. – We decided to use the synergy effect and propose a mechanism that locally connects the cheapest generation and consumption entities. Our position paper is a starting document that will evolve – he said.
Industry support and potential benefits
The IEPiOE has expressed strong support for the mechanism. Kaliś emphasized that large production facilities, seeking to maintain competitiveness on global and European markets, should be able to quickly connect wind sources either directly or via dedicated lines. He also called for easier investment in on-site generation within industrial plants, which would bypass long-distance transmission costs entirely.
Kowalski added that the proposal benefits both producers and consumers while guaranteeing faster development and construction of new renewable sources. – This is an attempt to create a market mechanism where supply (of energy) responds to demand – he said. The state’s role would be limited to guaranteeing contracts and taking over risk only if a buyer defaults, making it a parallel support system for industry that cannot wait for broader government intervention.
Źródło: WNP.PL, Fot. Magicmaik123 / Shutterstock
