The Origin of Capacity Market in Poland
The Origin of Capacity Market in Poland

Summary/Abstract: One of the basic obligations of the State towards its citizens is ensure energy security, defined as a situation where the economy can cover both the current and predicted consumer demand for fuels and energy in a technologically and economically reasonable manner, while observing requirements of environmental protection. Undoubtedly, in the context of electrical power energy security is understood as the security of supply, i.e. the capability of the power system to ensure the security of operation of the power grid and to balance the supply of electricity with the demand for this type of energy. This primarily depends on the availability of power generation sources of sufficient capacity. To ensure the continuity and stability of electricity supply to all end consumers in Poland in the medium- and long-term perspective, the Polish Ministry of Energy commenced drafting regulations concerning the capacity market as of 2016. These efforts have been aimed at causing an incentive effect in order to encourage making investment and modernisation decisions and to discourage decommissioning of the existing generation sources which determine the security of operation of the National Power System.

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