For households, the Shield has frozen net prices at a level of just over PLN 400 per MWh up to a certain consumption limit – a level comparable to previous years. Above the limit, electricity prices may not exceed PLN 693 per MWh. For micro, small and medium enterprises, sensitive customers and local governments, the maximum rate is PLN 785 per MWh.
That’s well below the prices commercial companies pay for contracted power for the year – their average price in futures contracts was around PLN 1,000 per MWh.
The spread is covered by the Spread Payments Fund, which is funded by energy companies. As a result, energy prices paid by consumers are lower than production costs.
Thanks to this, Poles do not have to worry about fluctuations in the electricity market, which destabilizes Russian raw materials and military policies. These price fluctuations can reach tens of percent over the course of several weeks. Let us recall that, for example, in August the price of 1 megawatt on the Polish Energy Exchange exceeded PLN 2,500, and it was still 2 times less than, for example, in Germany, where 1 megawatt hour costs € 1,125 (5,327 Polish zloty).
The Government Solidarity Shield protects entrepreneurs from similar price fluctuations, creating stable conditions for doing business.
Prices in the SPOT market, which are purchased and delivered overnight, reflect current costs of power generation. It has no current impact on the prices of households, MSMEs and sensitive beneficiaries. Prices in the SPOT market indirectly affect the costs incurred by trading firms who may wish to supplement the volume of energy contracted in the futures market with purchases in the next day market (SPOT).
Currently, energy prices in the Polish wholesale market are mainly affected by the high standard prices for CO2 emissions allowances in the European Union’s ETS system. In February and March, they reached a record high of 105 euros. This is more than in August last year, when one ton had to pay an emission allowance of as much as 98 euros. Let’s remember that in 2020, emitting one ton cost about 20 euros, so it was five times cheaper.
The good news for the Polish market is the increase in energy production from renewable energy sources. On Wednesday, March 29, the share of renewable energy in the power generation mix exceeded 55%. Photovoltaic power plants alone operate with a capacity of 7.54 GW, which gave a 35% share in power generation.
The record was achieved at noon, which shows how necessary it is to balance RES energy through conventional sources, and in the future through nuclear energy.
The content partner is PKEE
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