Wind energy in 2023. Summary and trends for 2024

With an expert eye

Magdalena Pasik, Water Management Engineer and Environmental Engineer

In 2023, the wind energy sector experienced dynamic growth and notable transformations, solidifying its position as a crucial player in the global energy landscape. Throughout the year, several significant events unfolded, shaping not just the present state of the industry but also its trajectory for the future.

The wind energy sector in 2023 was influenced by various factors such as the introduction of innovative technologies, the advancement of large-scale projects, regulatory changes, and global initiatives aimed at combating climate change. These elements collectively shaped the landscape of wind energy over the past year. Janusz Gajowiecki, President of PWEA, offered commentary on the summary of 2023 in wind energy.

The most important events in 2023

In 2023, the Polish and global wind energy sectors faced significant changes and challenges, marking a period of intense development, innovative projects, and pivotal decisions that steered Poland’s energy trajectory towards sustainability. Against this backdrop, it’s crucial to examine the most impactful events that shaped the landscape of Polish wind energy in 2023, leaving a lasting influence on both its current state and future prospects. Below is an analysis of the key moments that defined the year 2023 in the Polish wind energy industry.

Poland

National Reconstruction Plan

By the end of 2023, Poland had given the green light to the National Reconstruction Plan, a strategic blueprint outlining the country’s development direction post-global pandemic. Among its pivotal components, the approval of expenditure on energy network and infrastructure stood out, especially significant for the wind energy sector.

This decision to allocate financial resources for expanding and modernizing energy infrastructure, along with supporting projects in renewable energy sources, marked a substantial leap forward for the wind industry. Specifically, the endorsed policy creates opportunities for new wind farms to seamlessly connect to the national energy grid.

Amendment to the Distance Act

In the renewable energy sector, a significant issue in 2023 revolved around the amendment to the Distance Act. On March 23, 2023, the Act amending the Act on investments in wind farms and certain other acts was published, marking an important development.

The relaxation of the 10H rule stood out as a crucial step for the wind industry in 2023. After seven years of industry stagnation, new opportunities emerged for onshore wind energy. Following the amendment, wind turbines could now be erected based on local spatial development plans, with a minimum distance from residential buildings set at 700 meters. While the previously proposed 500-meter distance was widely consulted and accepted, it guaranteed the addition of new wind capacity within two years. With a change in government, there’s optimism as the new administration aims to introduce legislation unlocking the full potential of onshore wind, according to Janusz Gajowiecki.

However, at the end of December 2023, the topic resurfaced due to an unexpected amendment in the draft law on freezing energy prices. This amendment sparked considerable emotion and controversy due to misunderstandings surrounding its provisions, as per the legislator’s intentions.

Does a change of government give rise to new hopes?

Following the recent elections, there’s been a robust discussion regarding the new government’s priorities, particularly in energy and climate policy. This has sparked a debate on Poland’s direction in green transformation, with one intriguing idea being the establishment of an Energy Transformation Center.

Looking ahead to 2024, it’s expected to be a crucial period for energy policy, especially with the updating of key documents such as the Polish Energy Policy until 2040 (PEP2040) and the National Energy and Climate Plan for 2021-2030 (NECP). The Ministry of Climate and Environment has indicated the possibility of engaging in pre-consultations to prepare projects for updating these strategic documents concerning the energy sector. However, specific details regarding the progress of work on these documents are yet to be disclosed.

In December 2023, Miłosz Motyka, the new Deputy Minister of Climate and Environment, voiced support for expediting permit procedures for renewable energy sources. This stance signals a shift in approach towards renewable energy, suggesting potential enhancements in regulatory processes for the renewable energy sector, including wind energy.

Poland is advocating for the extension of provisions aimed at streamlining permit issuance for renewable energy projects. The aim is to bolster the proportion of renewable energy sources in the EU’s gross final energy consumption. The deputy minister emphasized the importance of reducing administrative burdens and harnessing the potential of European entrepreneurs in this regard.

These discussions on potential development scenarios in the Polish energy sector were covered in the Expert Eye column.

Baltic Power with the European Transaction award

The Baltic Power offshore wind farm project, a collaboration between Orlen and Northland Power, was honored with the European Transaction 2023 award.

This project represents a significant milestone in Poland’s offshore wind energy sector, spearheaded by the ORLEN Group as part of its strategic plan to achieve 9 GW of installed capacity in renewable energy by 2030.

Baltic Power stands out as the first project in Poland to secure the necessary construction permits, paving the way for construction to commence. In May 2023, construction of the land infrastructure in the Choczewo Commune began, marking a crucial phase in project implementation. Subsequently, in September 2023, the project secured necessary financing, followed by the official announcement of preparations completion and the commencement of the construction phase in October.

Located approximately 23 km off the coast, between Łeba and Choczew, the Baltic Power wind farm will feature 76 cutting-edge wind turbines with a unit capacity of 15 MW each. Upon its completion in 2026, this farm will have the capacity to generate enough energy to power over 1.5 million households, making a substantial contribution to Poland’s renewable energy sector development.

A new record was set for daily production from wind energy

On Christmas Day, wind farms in Poland reached a remarkable milestone in renewable energy production. According to data from Polskie Sieci Elektroenergetyczne (PSE), wind turbines generated an impressive 184.4 GW h of electricity, surpassing the previous record set on November 23 at 183.2 GWh.

This substantial increase in wind energy output was attributed to favorable weather conditions. Strong winds throughout Christmas Day allowed the wind turbines to operate at exceptional efficiency levels. At its peak, around 2 p.m., the turbines reached a capacity of 8.3 GW, nearly matching the historic record of 8.4 GW set on December 21.

This new record underscores the dynamic growth of the wind sector in Poland, showcasing its ability to achieve higher levels of efficiency and renewable energy production.

Part 2: The World

European Wind Energy Charter

On December 19, 2023, the European Wind Energy Charter was signed, marking a significant milestone in the European wind energy sector. Energy ministers from 26 EU countries, along with 300 companies, pledged to implement the initiatives outlined in the Charter, which forms a part of the Wind Package. These commitments entail urgent actions to reform wind energy auction procedures and permitting processes, as well as investments in the wind energy supply chain and essential infrastructure.

The Charter outlines plans for swift implementation of enhanced permitting regulations in accordance with the new Renewable Energy Directive. Regarding auctions, Member States are encouraged to utilize pre-qualification criteria, particularly in crucial areas like cybersecurity. The aim is to boost the selection of turbines manufactured in Europe while ensuring that auction prices accurately reflect increases in input costs.

European Wind Power Action Plan

In October, the European Commission unveiled the Wind Power Action Plan, a strategic initiative designed to expedite the advancement of wind energy across Europe and uphold the EU’s position as a leader in the global wind industry. This long-awaited plan aims to inject fresh vitality into the European wind energy sector.

At the heart of the plan are 15 targeted actions proposed by the Commission to fortify the European wind industry. These measures encompass increased financial backing through export credit agencies and the European Investment Bank. Additionally, the package includes a thorough examination of foreign subsidies, particularly within the context of China, with the objective of maintaining competitiveness for the European wind sector in the global market.

The largest wind farm in the world

In early 2023, Ørsted made headlines by announcing the successful completion of Hornsea Two, establishing it as the world’s largest wind farm in the North Sea, boasting an impressive capacity of 1.4 GW. Around the same time, Equinor and BP forged a noteworthy agreement to provide electricity from two offshore wind farms – Empire Wind and Beacon Wind – with the aim of powering New York. This agreement marked the largest Power Purchase Agreement (PPA) in the history of the wind energy industry.

Visible trends in 2023

In 2023, the wind energy sector continued to assert itself as a pivotal player in the global shift towards renewable energy, solidifying its position in the ongoing energy transition. Increasing recognition of wind’s potential as a clean, abundant, and sustainable energy source garnered significant attention, particularly amid efforts to curb carbon emissions. Ambitious forecasts for 2030 set targets suggesting that wind power could slash Europe’s CO2 emissions by a staggering 270 million tonnes, equivalent to the annual emissions of Spain. Already, wind supplied 16 percent of Europe’s electricity demand, with countries like Denmark, Portugal, Germany, and Spain leading in wind energy production.

The past year witnessed an impressive installation of 64.3 GW of offshore wind capacity across three continents and 19 countries, accounting for 7.1% of global offshore wind capacity. Looking ahead, the vision entails continued dynamic growth, with forecasts anticipating the addition of over 380 GW of offshore wind capacity in the next decade. This ambitious objective positions the offshore sector as a cornerstone of the global energy landscape, a trend already evident in current industry developments.

Throughout the year, there were notable reports of substantial investments and significant changes, particularly in the realm of “floating wind” and green hydrogen production. These advancements underscored the rapid progress in these segments within the renewable industry, underscoring the increasing prominence of hydrogen energy and wind power in the global market.

Forecasts for 2024

In 2024, a pivotal event will be the update of strategic documents, notably the Polish Energy Policy until 2040 (PEP2040) and the National Energy and Climate Plan for 2021-2030 (NECP). Mid-year, the Ministry of Climate and Environment announced potential participation in consultations to draft updates for these crucial national strategic documents concerning the energy sector. However, information regarding the progress of work on these documents is currently unavailable.

In the realm of wind energy development, offshore wind farms are poised to emerge as a significant catalyst for change and a substantial component of the Polish energy mix. Kacper Kostrzewa, director of the BC-Wind project during PWEA 2023, highlights that “Ocean Winds, one of the largest offshore energy developers globally, sees the potential of the Baltic Sea.”

Impressive data underscores this potential – currently, offshore wind energy in European waters boasts a capacity exceeding 20 GW, with the Baltic Sea contributing approximately 2 GW to this total. According to forecasts by Ocean Winds analysts, it’s projected that by 2030, an additional 9 GW of offshore wind capacity could be installed in the Baltic Sea area.

As highlighted, Europe’s commitment to accelerating wind energy development was underscored by the signing of the European Wind Energy Charter, endorsed by 26 EU countries and 300 companies. This signals an optimistic outlook for the future, with forecasts indicating further expansion of wind power, both onshore and offshore. Innovations in areas like “floating wind” and green hydrogen production further underscore the dynamic growth of the renewable industry. Changes to regulations regarding distance from buildings and financial support for renewables from the National Reconstruction Plan also offer new opportunities for the wind sector in Poland.

Moreover, significant investments integrating multiple energy sectors and leveraging innovative technologies, such as the inaugural hybrid solar-wind power plant in Poland’s Kleczew commune in the Greater Poland Voivodeship, represent promising avenues for advancement.

The year 2024 through the eyes of PWEA

Janusz Gajowiecki outlines the challenges anticipated for 2024:

“In 2024, our focus is on improving the permit issuance process, particularly in spatial planning matters. Currently, these processes are arduous and protracted, spanning several years, and they urgently need streamlining. Repowering, which involves replacing the aging wind turbine fleet with newer models, is another crucial aspect. We must prepare appropriate legal frameworks now to facilitate this transition in the coming years. Additionally, addressing network connections poses a significant challenge. We require clear regulations from the ministry, the Energy Regulatory Office, and a solid foundation for collaboration with operators. These steps will enable us to progress further. We anticipate groundbreaking changes. Optimistic announcements from the new government bode well for the wind industry, with all coalition parties committed to accelerating the development of renewable energy sources, including wind energy.”

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