The electricity price on the Day-Ahead Market (RDN) of the Polish Power Exchange (Towarowa Giełda Energii S.A., TGE) reached PLN 229.31 per MWh in 2019 and it was 2.82% (PLN +6.28 per MWh) higher as compared to 2018. The average settlement price on the Balancing Market (RB) came in at PLN 234.84 per MWh and it was 3.08% (PLN +7.01 per MWh) higher as compared to 2018.
The factors behind the rising prices on the Day-Ahead Market (RDN) and on the Balancing Market (RB) were the continued high CO2 emission allowance prices and the stable energy commodity (coal, oil) prices.
In connection with the commissioning of the new conventional generation units, e.g. the Opole Power Plant, the capacity balance in the national power system improved, rising by 1,800 MW.
Analyzing the average monthly prices on the Day-Ahead Market (RDN), it should be stated that the lowest prices were recorded in December 2019, with the average price of PLN 189.45 per MWh and the high generation from wind sources (1.66 TWh), while the highest prices occurred in August 2019, with the average price of PLN 267.22 per MWh and the lowest generation from wind sources (0.55 TWh).
The combination of a decrease in electricity consumption with a record-breaking volume of electricity imported into the Polish power system and an increase in electricity production by wind farms significantly contributed to a decline of the electricity production by conventional sources.
In 2019, a decrease in electricity production by hard coal fired power plants was recorded, down to 78.19 TWh (-4.19 TWh year on year and -5.08%). There was also a marked drop in the production by the lignite fired power plants down to 41.50 TWh, i.e. 7.57 TWh less than in 2018 (-15.43% year on year), mainly due to the permanent shutdown of the BEL 2-01 generating unit at the Bełchatów Power Plant with 370 MW of installed capacity and the overhaul of 3 generating units at the Turów Power Plant. The decline of the electricity production from hard coal and lignite was also the result of the higher generation by gas fired power plants, whose production increased by 2.51 TWh, to 12.10 TWh, on an annual basis. The electricity production by wind farms in 2019 also reached a record-breaking volume of 13.90 TWh (an increase by 19.05% year on year). The change in the structure of electricity production in Poland in 2019 caused a strong downward trend of the electricity prices on both the SPOT market and the Commodity Futures Market (RTT).