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The basis for obtaining project financing (Project Finance) for wind farms or photovoltaic installations is long-term and stable revenue security. Banks, when granting credit on the basis of limited recourse to the investor’s assets, must be certain that the project’s future cash flows are sufficient and predictable to repay the debt.
A support mechanism guaranteeing the energy sale price for up to 15 years. It ensures revenue stability and eliminates price risk, making RES projects bankable.
Long-term contracts with commercial customers, providing predictable revenues in a market model. This is a flexible alternative to auctions, combining financial stability with ESG goal achievement.
preparation of prequalification documentation,
preparation and submission of auction bids,
representation before URE and the Settlement Manager,
legal support for using the auction system,
monitoring and settlement of balances (negative and positive),
advisory services regarding compliance with energy law requirements.
preparation and negotiation of PPA contracts (Physical and Virtual),
development of corporate cPPA agreements (Corporate Power Purchase Agreement),
advisory services regarding commercial balancing,
handling Market Access Agreements with aggregators and trading companies,
securing parties’ interests through price clauses (strike price, CfD),
support regarding guarantees of origin (GO).
monitoring installation compliance with licenses and energy law regulations,
support in contacts with URE, DSO and TSO,
handling warranty claims against contractors, suppliers and service providers,
negotiation and optimization of service agreements (Operation & Maintenance),
representation in disputes with energy customers and contractors,
corporate services for special purpose vehicles (SPV/SPC).
negotiating change in law and regulatory risk clauses in PPA agreements,
advisory services for redispatching mechanisms and compensation for production limitations,
securing investor interests in balancing and service agreements,
handling disputes regarding commercial energy imbalance,
support with TSO contracts regarding system services (e.g., capacity reserves).
We are at your disposal.
We offer professional legal care at every stage of the project.
Winning a RES auction gives the generator the right to use support for a period of up to 15 years.
This mechanism is based on the principle of a contract for difference (CfD):
when the market price of energy falls below the price won in the auction – the Renewable Energy Settlement Operator (OREO), whose role is performed by the Settlement Manager S.A., pays the generator a supplement (so-called negative balance), equalizing the actual sale price to the auction level,
in the opposite case – the generator pays the surplus (positive balance) to the Settlement Manager.
Thanks to this mechanism, the risk of market price fluctuations is eliminated, which significantly increases the project’s bankability – banks gain certainty that cash flows will allow for loan repayment.
Our Law Firm supports investors at every stage of the auction process – from obtaining prequalification, through preparing and submitting bids, to ongoing legal support for using the support system.
Power Purchase Agreement (PPA) is a long-term agreement for purchasing electricity directly from a RES generator, e.g., a photovoltaic or wind farm, by an end customer – a large industrial company, corporation or public institution.
For investors, it is an instrument that can serve as an alternative to the auction system while ensuring a similar level of revenue stability.
For the generator PPA means a predictable revenue stream for a period of up to 15 years, which facilitates obtaining debt financing (Project Finance).
For the customer the contract ensures a fixed, stable energy price, protecting against exchange uncertainty, and additionally supports ESG goal achievement – carbon footprint reduction and green energy use.
Physical PPA – energy is physically delivered from the RES installation to the delivery point through the distribution network,
Corporate PPA (cPPA) – a contract most often concluded by large entities, in which energy is sold to the grid at market price, and the parties settle the difference against the established base price (strike price). This solution, with appropriate security, ensures price stability and project bankability,
Commercial balancing agreements – transfer of production deviation risk to the entity responsible for balancing,
Market Access Agreement – a contract with an aggregator or trading company, including energy sales on the Energy Exchange, OTC contract conclusion, balancing, forecasting and handling formalities with TSO and DSO.
Our Law Firm advises on all PPA and cPPA models, preparing, reviewing and negotiating agreements in such a way as to minimize legal and financial risks and ensure predictable revenues for the investor and safe energy purchase conditions for the customer.
After obtaining a license for electricity generation, the stage of ensuring stable and profitable exploitation of the power plant begins.
Key in this regard are:
Well-prepared agreements for equipment maintenance and exploitation
(turbines, panels, power stations, etc.),
Distribution (DSO) or transmission (TSO) agreement adapted to installation needs,
TCM (Technical Commercial Management) agreement,
Proper management of warranty and post-warranty claim processes
– both against work contractors and equipment suppliers,
Management of auction processes,
Proper and timely reporting to URE, ARE, Settlement Manager,
banks financing the investment and other institutions.
Our Law Firm offers in this regard specialized legal advisory and corporate services, which ensure investment security, revenue stability and risk minimization.
The main advantage of winning an auction is ensuring stable revenues from the installation for up to 15 years.
This ensures:
the bank gains a guarantee of revenues at a specified level and for a specified period, which facilitates financing,
the energy price is indexed annually by the inflation rate,
The Settlement Manager, as a State Treasury company, acts as a secure guarantor of payments.
An auction is a quasi-tender procedure in which producers offering the lowest sale price for RES energy win.
In Poland, auctions are organized by the President of URE, and settlements are conducted by OREO (Settlement Manager S.A.).
Different technologies compete in so-called auction baskets.
The winner obtains the right to a fixed, indexed price for 15 years.
The mechanism involves covering the difference between the winning price and the market price (surcharge or return of surplus).
OREO (Renewable Energy Settlement Operator) – this function is performed by Settlement Manager S.A.
Its tasks include:
settling balances (negative and positive),
guaranteeing the realization of auction prices,
securing the bankability of RES projects.
It is worth noting that OREO does not purchase energy – it acts as a price guarantor, not an energy buyer.
Auction – intended for large projects, it takes the form of a contract for difference. The producer receives a subsidy if the market price is lower than the auction price, and vice versa.
Feed-in Tariff (FiT) – for smaller installations; it guarantees a pre-determined price for all production, regardless of the market and without price competition.
The following is required:
obtaining a certificate of admission to the auction (so-called pre-qualification at URE),
attaching to the application, among other things, grid connection conditions / connection agreement and a final building permit,
establishing financial security: PLN 60/kW (PLN 60,000/MW) in the form of a deposit or bank guarantee (legal status as of end of 2025).
After winning the auction, the installation is built, connected to the grid, an occupancy permit is obtained, and a concession is acquired – only then does the project enter the auction system.
It is crucial to offer the lowest price per 1 MWh while maintaining the investment’s profitability.
The analysis should include:
CAPEX and OPEX – construction, equipment, connection, and operating costs,
financial model – debt and equity structure, IRR,
competition – e.g., wind power often offers lower prices than PV,
alternatives – the attractiveness of PPA/cPPA at a given moment,
precise offer preparation – errors can cost profitability for 15 years.
The RES Act allows for a single change to:
the planned date of entry into the system (within statutory deadlines, e.g., 33 months for PV and onshore wind),
the amount of energy,
installed capacity (provided it falls within the original auction basket).
Updates are made by notifying the President of URE within 30 days before:
the first sale of energy in the system (for “small” installations),
the first application for covering a negative balance in OREO (for “large” installations).
No. PPA (Power Purchase Agreement) exclusively regulates the commercial terms of energy sales between the producer and the consumer.
A license, issued by the President of ERO, is a formal authorization to conduct business activities in the field of energy generation and trading.
These are two separate matters – a license is mandatory, while PPA/cPPA serves to optimize revenues.
PPA – general term for a long-term energy sales agreement.
cPPA (Corporate PPA) – a specific form where the consumer is an enterprise (corporation).
cPPA allows the consumer to reduce energy costs and supports the achievement of ESG goals, while providing the producer with revenue stability.
Yes. GO are regulated by law and constitute a separate trading instrument.
In PPA agreements, we precisely determine who holds the rights to GO and whether they are transferred together with the energy.
We also handle the trading of guarantees of origin as an additional source of revenue for producers.
Sleeved PPA – concluded with the participation of a traditional energy seller,
Virtual PPA (vPPA) – a financial instrument securing the price.
In both cases, it is essential to precisely regulate settlements and financial securities, including:
bank guarantees,
credit support annex clauses,
contract termination conditions in case of significant market price changes.
Yes. We introduce change in law and regulatory risk clauses that enable contract renegotiation or termination in case of legal changes threatening the profitability of the investment.
No. Guarantees of origin are granted only after a license for electricity generation is issued for the project. They are not granted for the commissioning period.
An O&M agreement is crucial for reliable operation.
Key areas to focus on:
scope of contractor’s responsibility,
response and repair times,
penalties for non-compliance with technical parameters (e.g., plant availability),
subcontractor provisions.
Most frequently relate to:
payment delays from off-takers under PPAs,
disputes with service providers (O&M) regarding liability for failures and plant unavailability.
We represent clients in both mediation and court proceedings.
Imbalance (so-called deviations) is one of the most significant financial risks.
We assist in negotiating balancing agreements to:
eliminate the risk of penalties for deviations,
clearly define which party is liable,
introduce mechanisms for compensating production fluctuations.
Providing system services (e.g., power reserves) can be an additional source of income.
When negotiating with PSE, ensure the following:
technical conditions and testing procedures,
contractual penalties for plant unavailability,
full compliance with regulations to fully and profitably utilize the plant’s potential.
It is an electricity system management mechanism applied, for example, to PV installations.
Its purpose is to maintain grid balance and security, often at the cost of curtailments in RES production.
We assist in negotiating with grid operators and securing compensation for curtailments.
Generally – yes. RES producers are entitled to compensation for lost production, but its scope depends on the provisions in connection agreements and annexes.
Polish regulations in this regard are more restrictive than EU regulations (EU Regulation 2019/943) – therefore, we always recommend legal consultation before signing documents.
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