Poland’s Competition Authority Investigates Grid Operator Over Renewable Energy Curtailment Practices

Key Takeaways

• Antitrust Investigation Launched: Poland’s competition authority UOKiK has opened an investigation into the practices of transmission system operator Polskie Sieci Elektroenergetyczne (PSE).
• Redispatching Under Scrutiny: The probe focuses on how PSE used the redispatching mechanism, which allows the grid operator to limit renewable energy output to maintain system stability.
• Complaints From Renewable Producers: Renewable energy companies alleged their facilities were curtailed more frequently than others without clear justification, potentially affecting their competitive position.
• Dominant Market Position: As Poland’s sole electricity transmission system operator, PSE holds a dominant position and must comply with competition rules that prohibit discriminatory or abusive practices.

Deep Dive

Poland’s competition authority has launched an investigation into the practices of the country’s electricity transmission system operator after complaints from renewable energy producers raised concerns about how generation curtailments are being applied across the market.

The President of the Office of Competition and Consumer Protection (UOKiK), Tomasz Chróstny, announced that the authority has begun examining the conduct of Polskie Sieci Elektroenergetyczne (PSE), the operator responsible for managing Poland’s electricity transmission network.

At the center of the investigation is the use of a mechanism known as redispatching, a tool grid operators rely on to temporarily limit or shut down renewable energy installations in order to keep electricity supply and demand balanced or prevent congestion on the power grid.

The process can be essential for maintaining system stability. Poland’s power grid must constantly match electricity generation with consumption, and imbalances can lead to disruptions, including outages. In situations where too much electricity is being generated in certain areas or the grid is under strain, operators may instruct renewable installations to reduce output.

But while the mechanism serves a technical purpose, it can also carry financial consequences for the energy producers affected.

UOKiK said it received complaints from companies involved in renewable energy generation alleging that their facilities were ordered to curtail production more frequently than others without clear justification. If that were the case, the authority noted, it could put those producers at a competitive disadvantage by reducing their revenue from electricity sales.

The investigation will examine whether the instructions issued by PSE to reduce or shut down renewable generation were applied proportionately, consistently, and without discrimination between market participants.

“We do not question the role of PSE in ensuring the security and stability of Poland’s power system, nor do we question the tools available to the transmission system operator for this purpose,” Chróstny said in a statement. “We are examining whether the redispatching mechanism was used in a transparent and non-discriminatory manner.”

The issue has emerged alongside the rapid expansion of renewable energy capacity in Poland. UOKiK described redispatching disputes as a relatively new phenomenon in the Polish energy market, linked in part to the dynamic growth of renewable generation, including installations owned by prosumers.

Polskie Sieci Elektroenergetyczne occupies a unique role in the country’s energy system. Under Polish law, only one entity may serve as the electricity transmission system operator, meaning PSE holds a dominant position in that market. Companies in such a position are subject to strict antitrust rules and are prohibited from abusing their market power to the detriment of contractors, competitors, or consumers.

The competition authority said its review will focus on whether the redispatching mechanism was implemented in a way that ensured equal treatment for all energy producers.

The matter also intersects with oversight from Poland’s Energy Regulatory Office, which regulates the country’s energy sector and is already addressing redispatching issues as renewable capacity continues to expand.

UOKiK said the investigation is intended in part to support broader efforts to clarify how redispatching rules should be applied in the evolving energy market and to ensure that all producers operate on a level playing field.

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