European Commission prioritizes non-price criteria in auctions

Renewable energy is key to achieving the EU’s decarbonization goals and delivering clean, cheap and reliable energy. Facilitating RES development is becoming a priority for the European Commission, as evidenced by recently published documents. The new recommendations include simplifying procedures, creating fast-track areas for RES development and improving the auction system with a special focus on non-price criteria. Their key role will also be discussed by participants of the PWEA 2024 Conference, which will be held already on June 4-6 in Swinoujscie.

In May this year, the European Commission published a set of recommendations on RES auction systems. The documents are intended to help implement the EU’s renewable energy framework by improving conditions for faster implementation at the national level. The recommendations specifically highlight auction systems and the key role of non-price criteria.

„Relying purely or mainly on price does not allow for adequate appreciation of respect for high environmental and social standards, or for ensuring the resilience of supply chains or the integration of the energy system. By introducing non-price criteria, it will be possible to promote more sustainable, innovative and locally engaged development of the renewable energy sector, which will contribute to Poland’s long-term economic and social development. In particular, resilience, workforce development, cyber security and a green supply chain are key to building a strong net-zero industry”, says Maciej Mierzwinski, CEE Energy Group.

Increased demand for European-produced green technologies is also expected to boost the competitiveness of EU industry and contribute to the goals of the European Green Deal.

“The Net Zero Industry Act and the recommendations issued by the EC on RES auction systems are some of the most important documents for stakeholders in the construction of offshore wind farms in Poland. With an ambition to build another 10 GW of offshore wind farms in the Baltic, Poland should try to effectively take into account in the construction of large-scale RES capacity the potential of domestic contractors and continent-wide aspects, including the so-called European Content industry. The introduction of non-price criteria into auction processes is crucial to promoting sustainability and local supply chains in the renewable energy sector. This is a fundamental issue for the development of a strong wind power sector in our country” says Dominika Taranko, vice president of Wind Industry Hub.

Assessing the ability of contractors to ensure constant supply in difficult conditions and diversifying supply sources are factors that strengthen the position of local suppliers and reduce the risk of project interruptions. This is the proposed criterion of so-called resilience. It is important for ensuring the stability and resilience of the European supply chain, and thus the reliability and efficiency of wind power in Poland.

Another considered criterion is the involvement of offshore wind farm investors in the development of the education system, including professional education. Poland and in general Europe need a strong base of qualified personnel to meet the demands of the growing wind energy sector. This is a very important criterion that can determine the requirement to provide training programs and support in the development of careers within the entire investment program of farm construction.

The EC recommendation document also touches on the aspect of protection against digital threats, security of local networks and energy infrastructure. In the context of Poland, where cyber security is becoming increasingly important, the implementation of appropriate IT solutions is essential.

On the other hand, the inclusion of environmental aspects, such as recycling of materials or greening of the supply chain, promotes green solutions and supports local companies promoting circularity and lowering the carbon footprint of products and services.

Innovation, which includes research and development, adaptation of new technologies and distribution of knowledge, supports technological development and can lead to the creation of new technology companies in Poland. This is a criterion of great importance, as it supports scientific and industrial consortia working on innovations that can fit into the country’s development policy. Poland has the opportunity to become a leader in innovative solutions, which will significantly affect competitiveness and economic development, and with the use of this non-price criterion can support the chances of participation of domestic companies in the comprehensive supply of products and services.

The perspectives of RES development in Poland and the directions of Poland’s energy transformation will be discussed by the participants of the 19th PWEA Conference, which will be held on June 4-6, 2024 in Swinoujscie.

PWEA 2024 Conference – registration and more details: www.konferencjapsew.pl

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