Marek Dolatowski | In Principle

The end of last year abounded in new regulations in Poland governing the electricity market. There was also a lot of talk about the need to amend questionable regulations. But the changes are so numerous it is hard to predict their ultimate impact on the market and specific market participants. This is particularly evident in the case of generators of power from renewable energy sources benefiting from the auction support system.

The situation on the energy market has never been so dynamic. Many claim that high energy prices will not allow economic growth to be sustained, and will lower consumers’ standard of living. It would seem that at least generators of electricity from renewable energy sources are happy about the higher energy prices on the market, as they can sell power for more while keeping production costs relatively low. But when these producers participate in the RES auction support system, their situation becomes more complicated than it might seem at first glance.

The latest amendment to the Capacity Market Act (which came into force on 1 September 2021) finally introduces a preferential method of calculating the capacity fee, long awaited by companies. However, the rules for calculation of the fee are based on completely different assumptions than the relief initially expected.

The rising costs of electricity and CO2 emission allowances are prompting an increasing number of businesses to consider investing in their own generation sources, including renewable energy sources. However, such an investment involves not only the purchase of appropriate equipment and finding a contractor. It also requires meeting a number of regulatory obligations and ensuring that the operations of the source are supported after it is placed in service.

Both industry and households will see increased fees in their electricity bills. Meanwhile, the announced relief for energy-intensive industry is still lacking.

The Ministry of Entrepreneurship and Technology has submitted a long-awaited draft of the Act on Compensation for Energy-Intensive Industries in relation to the rising costs of climate policy.

A proposal for amendment of the Renewable Energy Sources Act has been published. It is intended to enable production of new RES while keeping energy prices as low as possible for users.

The Ministry of Energy has published a draft amendment to the regulation on tariffs reducing the burden of the qualitative fee on some “large” industrial customers.

The Energy Regulatory Office has confirmed that wind projects in RES auctions will not have to demonstrate the incentive effect. Here we explain what these changes will mean in practice.

The president of the Energy Regulatory Office has withdrawn from imposing sanctions on a company that relied on data for a company acquired in a merger when applying for the status of an industrial user of electricity.

A real threat to repayment of credit taken out to build wind farms has arisen. It is a problem for investors and banks. Will it launch a wave of arbitration claims against the Polish Treasury?

We decided to examine the fate of the support system for renewable energy sources in Poland in recent years and the impact now felt by market participants. Understanding what has actually happened can enable all parties to find the best exit from the current difficult situation.