Electricity market

According to the data of National Power System (NPS), national demand for electricity in 2017 amounted 168,4 TWh and was higher by about 4 TWh, that is 2,4% than last year. National demand for electricity in Poland is covered mainly by coal and lignite powered power plants. A gradual growth of renewable energy sources can be observed in the energy mix. Wind energy dominates in this segment. In 2017 electricity generated in wind sources amounted 14,4 TWh and was higher by 24,1% yoy.

Also the electric capacity grew in Poland in 2017, which was caused mainly by introduction to the system the largest coal powered energy block in Kozienice, which belongs to Enea, and starting the Heat and Power Plant (CCGT) of Orlen in Włocławek powered with natural gas.

Total generation of Centrally Dispatched Generating Units (CDGUs) – units dispatched by NPS – in 2017 grew by 1,4% yoy and amounted 113,2 TWh. Total generation of non-centrally dispatched generating units (nCDGUs) – independent units that decide about the size of production themselves – amounted 53,6 TWh, which constituted a growth by 4,1% yoy.

In 2017 Poland imported electricity. According to the data of NPS the negative balance of foreign exchange amounted 2,3 TWh, that is more by about 1,5% yoy. Import took place mainly from Sweden, to a smaller extent from: Lithuania, Ukraine, Germany, Czech Republic and Slovakia. Import was conditioned by the energy price on the neighbouring wholesale markets, which was frequently lower than domestic prices (cheap hydro plants present on the NordPool market, a large generation of wind and photovoltaic power plants in Germany).

In the past year one could observe a decrease in the number of customers who changed the seller in the tariff groups A, B and C, and a growth in G tariff group (households). Data presented by the distribution system operators demonstrate that in tariff groups A, B and C in 2017 a change of seller was made by 14,4 thousand of customers compared to 15,2 thousand in 2016 (drop by 5,3% yoy), but in the tariff group G in 2017 a change of the seller was made by 84 thousand of customers compared to 71 thousand of customers in 2016 (growth by 18,3% yoy). At the end of 2017 the number of TPA from tariff groups A, B and C amounted in total 188 thousand, but in tariff group G (households) in total 547 thousand since the moment the possibility of changing the seller had been made available (incremental data).

The volume of electricity trade at the Polish Power Exchange (PPE) amounted in 2017 111,7 TWh, which means a decrease by 11,8% compared to the year 2016. On the spot market the volume decreased by 8,6% to the level of 25,2 TWh. The volume on the Day-Ahead Market amounted 25,1 TWh, becoming smaller by 8,7%, and on the Intraday Market 90 605 MWh, growing by 27,0%. The decrease by 12,7% occurred on the Commodity Forward Instruments Market where the volume of trade amounted 86,4 TWh.

The average weighted BASE price on the Day-Ahead Market reached in 2017 the level of 157,96 PLN/MWh, being smaller by 3,78 PLN/MWh compared to 2016. On CFIM market the average weighted price of annual contract for block delivery in 2018 (BASE_Y-18) amounted in the whole of 2017 167,50 PLN/MWh, which means a growth by 8,24 PLN/MWh compared to the price of BASE_Y-17 contract quotations in 2016.

A significant event on the energy market in 2017 was the change of the Polish Energy Market from a single-commodity to double-commodity market, which was the consequence of coming into force the Law of 8th December 2017. This is an introduction of a regulatory solution the aim of which is to satisfy shortages of generating powers, resulting on the one hand from the expected growth of peak demand for power and electricity, on the other hand – from a large extent of the planned decommissioning of generating units. The power market introduces support in the form of additional remuneration – power payments – for generating sources to ensure proper power or the specified in the contract period of time in case there are power shortages. Offers for the amount of the expected remuneration for power will be selected during auctions that will start in December 2018. (source: URE).