Poland’s capacity markets are at a crossroads – what’s next?  

Our experts, Ksenia Tolstrup and Lisa-Marie Mohr, authored a study on resource adequacy and flexibility in Poland commissioned by Forum Energii – an independent Polish think-tank supporting the energy transition. The report serves as input for the Polish stakeholder discourse on the national capacity market design and flexibility needs, and is now available.

Poland’s capacity markets

Similar to other EU countries, Poland is progressively integrating more intermittent renewable energy sources (RES) and is undergoing a reform of its capacity market, necessary to safeguard security of supply – or resource adequacy. Against this backdrop, the need for both technologies that provide a stable output, able to run over a longer period, as well as flexible capacity, able to ramp up quickly to offset RES volatility, is rapidly increasing.

The report, Redesigning Poland’s Capacity Market and System Flexibility, consists of two parts.

1. Capacity market functioning and design

Part One analyses the currently applicable capacity market design in Poland, pending the outcome of its reform. The report offers insights into the different capacity mechanisms available in Europe and an analysis of the Polish situation, based on multiple KPIs. Based on our experts’ analysis and interaction with Polish stakeholders, they proposed concrete measures to improve its market design.

2. System flexibility options explained and explored

Part Two focuses on system flexibility and its link to resource adequacy, which has become more prominent in the context of the latest update of the EU Electricity Regulation.  This part zooms in on different approaches to covering key flexibility needs and resource adequacy. It explores different models and 4 options for the future. Could Poland update its current capacity market to account for flexibility needs or use a separate support scheme for non-fossil flexibility? Could Poland create a capacity market for two separate products: firm and flexible? Should it combine strategic and grid reserves? Or introduce a novel concept of a Capabilities Market?  

“The modernisation of the energy system cannot rely solely on increasing capacity — it must also include the ability to dynamically manage that capacity in conditions of fluctuating electricity demand and supply. That is why the future capacity market mechanism should form part of a broader reform of the energy market: one that includes accelerating the development of renewables, modernising the grid, introducing dynamic tariffs, and creating conditions for active consumer participation in the energy market” – Adamczewski, Vice-President of the Forum Energii.

The two reports are available on the Forum Energii website: here.

More insights on capacity markets and energy system flexibility?

If you want to dive further into the topic of energy system flexibility, capacity markets or if you want to analyse your specific situation, don’t hesitate to reach out.