The Evolving Polish Solar Market: Price Cap and Comparative Analysis in Central and Eastern Europe
In the dynamic landscape of renewable energy, navigating challenges is an inherent part of the industry.
NICL has been active in Poland since 2017, arranging project finance for the country’s very first batch of solar PV projects under the CfD scheme. This came shortly after a poorly managed Green Certificate regime that forced many renewable energy projects into administration. The CfD scheme was a success, and Poland has since seen the development of approximately 10 GW of new renewable capacity.
A Trusted Development Partner
In a joint venture with Czech fund Hydrogen One, NICL launched Vaskol, a special purpose vehicle dedicated to developing and building solar PV and storage projects in Poland, with a view to incorporating green hydrogen production in the medium term. Of its 100MW+ pipeline of PV projects, Vaskol has successfully achieved Ready-to-Build (RTB) status on nearly 20MW — most of which has already been energised or will be by early 2024.
The Vaskol team demonstrated perseverance and strategic prowess by successfully refinancing its portfolio of PV projects. This was achieved despite a backdrop of high interest rate volatility and the government’s introduction of a price cap, which led to a substantial decrease in wholesale power prices — forcing greater reliance on merchant revenues.
Strategic Execution in Unstable Conditions
The Vaskol team worked tirelessly to develop innovative solutions in the face of market volatility and uncertain regulatory and political landscapes. This adaptability allowed Vaskol to secure competitive financing terms and proved the team’s ability to deliver bankable projects even in the most challenging conditions.
Vaskol’s successful refinancing sends a strong signal to PV developers in Poland. It underscores the industry’s ability to adapt to regulatory changes and economic uncertainties, reinforcing investor confidence. Moreover, the transaction highlights the critical role of solar energy in Poland’s energy transition, despite short-term hurdles.
This transaction was made possible by Vaskol’s market-leading advisory team:
- Dentons – Vaskol legal (Warsaw)
- Norton Rose Fulbright – Lender’s legal (Warsaw)
- Forte Engineering – Technical advisors