Pytko | In Principle

On 13 March 2023, the President of Poland signed an amendment to the “10H Act,” setting the minimum distance of a wind power plant from residential buildings at 700 metres (over calls by power generators, industry organisations and many local governments that it should be 500 m). This means that the years-long struggle to liberalise the infamous “10H rule” has been half-successful.

On 21 October 2022, a draft act to amend the Energy Law and certain other acts was published on the website of the Government Legislation Centre, implementing the Polish Hydrogen Strategy. The proposal aims to create a stable regulatory environment for the hydrogen market in Poland.

The first draft of the regulation on the maximum amount and value of electricity from renewable energy sources that may be auctioned in calendar years 2022–2027 in Poland was published on 5 July 2022. It is the first time such a regulation covers six consecutive years. This follows from the amendment to the Renewable Energy Sources Act spurred by industry voices asserting that announcing these values further in advance would allow developers to better prepare for the auction and thus offer more competitive prices.

2021 witnessed a record increase in wholesale energy prices (in Poland, by almost 100%) and prices for EU ETS emission allowances (by about 105% compared to 2020). Additionally, a sharp increase in natural gas market prices (in Poland, by 470% compared to 2020) has made energy poverty a common phenomenon in Europe. The European Union has presented a set of tools to temporarily mitigate the effects of rising energy prices. However, the events of recent months, in particular Russia’s full-scale invasion on Ukraine, have shown that alongside the green transition, the EU’s priority should be to become less dependent on Russian fossil fuels.
2021 witnessed a record increase in wholesale energy prices (in Poland, by almost 100%) and prices for EU ETS emission allowances (by about 105% compared to 2020). Additionally, a sharp increase in natural gas market prices (in Poland, by 470% compared to 2020) has made energy poverty a common phenomenon in Europe. The European Union has presented a set of tools to temporarily mitigate the effects of rising energy prices. However, the events of recent months, in particular Russia’s full-scale invasion on Ukraine, have shown that alongside the green transition, the EU’s priority should be to become less dependent on Russian fossil fuels.

In Europe and worldwide, the battery market is undergoing revolutionary changes. The World Economic Forum predicts that global demand for batteries will be 14 times greater in 2030 than it is today. This means that the number of plants producing them must increase significantly. In 2030, the European Union could account for 17% of the global market demand for batteries. Among other things, this is influenced by the growth of the digital economy, low-carbon mobility, and renewable energy. The number of problems related to battery production and unregulated issues has inspired the European Commission to make decisive changes in European law, the effects of which will be felt not only by the battery industry but also directly by consumers.

On 7 December 2021, the Polish government officially announced its Polish Hydrogen Strategy for 2030 with a view to 2040. The announcement came at a perfect time, amid price turbulence on the natural gas market in Europe and growing doubts whether natural gas (of which Europe has too little) is still a reasonable transition fuel for decarbonisation of the economy.

On 25 June 2021, the president of Poland’s Energy Regulatory Office announced the results of the May/June 2021 auctions for sale of renewable energy. Unlike in previous years, the results of all auctions announced in 2021 were released on one day.

The long-awaited rules for construction of wind farms have been announced. On 4 May 2021, a bill to amend the Act on Wind Power Plant Projects (aka the “Distance Act” or “10H Act”) was published on the Government Legislation Centre website. Its adoption may once again stimulate the growth of wind power, which not long ago was the most dynamic branch of renewable energy sources in Poland.

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.

Poland’s state-funded My Electricity programme, which provides subsidies for home photovoltaic installations, contributed to the installation of over 220,000 home PV installations in two years. The installation of new PV capacity in Poland has accelerated rapidly, reaching 4.1 GW in March 2021 (up from 557 MW at the end of 2018). A similar increase may soon apply to electric car charging installations, as according to announcements by the Ministry of Climate and Environment, from July 2021 owners of individual chargers will also be able to obtain funding from the programme.

On 16 February 2021 the Polish Ministry of Climate and Environment released for public consultations a draft of the regulation on the maximum price for electricity generated at an offshore wind farm and introduction into the grid, in PLN per MWh, which is the basis for calculating the right to coverage of a negative balance. This amount is set at PLN 301.50/MWh (about EUR 67/MWh). This means that this will be the maximum amount of support from the Polish state for wind farms built in the Polish area of the Baltic Sea, which will be allocated within the next four months.

On 12 February 2021, Poland’s Deputy Prime Minister and Minister of Development, Labour and Technology, Jarosław Gowin, announced that the ministry has submitted to the government for inclusion in its agenda a proposal to amend the so-called 10H Distance Act. This means that in about two weeks, the public consultation process will begin, lasting another three weeks.