energy | In Principle

Under the current Polish law, it is still possible to carry out projects based on permits for construction of wind power plants whether issued before or after 16 July 2016, but based on proceedings initiated before that date. Construction is still possible under the old conditions, before the later restrictions came into force. This could improve the unsatisfactory development of renewable energy in Poland. But how long will the old permits remain in effect, and must the projects be put into operation by 16 July 2024?

Biogas and biomethane play a vital role in EU regulations and thus also in the Polish legal system. The accelerating energy transition resulting in billions of dollars of investment in weather-dependent renewable energy sources also requires balancing energy production with controllable sources, among which biogas looms large. Biogas and biomethane production is also a key arc of the circular economy and the greening of agriculture supported by EU legislation—especially in times of turmoil on the market for natural gas from fossil sources.

For companies participating in a reorganisation to continue pursuing their owners’ objectives, permits, licences or other administrative decisions necessary for operation must be secured. Proper preparation for this process requires not only knowledge of the regulations under which the administrative decisions are issued, but also the agencies’ procedural practice.

On 13 April 2023, an amendment to the Nuclear Special Act entered into force. After a legislative process lasting almost two years, the prior rules for development of nuclear facilities in Poland were revised, along with changes to the Atomic Law.

Hydrogen has long been mentioned in EU strategies as a key resource for the energy transition. But so far a major obstacle has been the high cost of producing renewable hydrogen. This is likely to change with Ursula von der Leyen’s initiative to establish a European Hydrogen Bank, announced on 14 September 2022 during the 2022 State of the Union address and outlined in concrete plans in March 2023.

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.

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.

On the Polish energy market, the recent months will be remembered for many reasons. Historically high electricity and natural gas prices have forced changes to a number of established practices. During the crisis, several mechanisms have been created to mitigate its effects—primarily high utility prices. Among other things, a cap on the price of electricity sold to selected end users is being introduced. We now briefly examine whether the Act on Emergency Measures to Restrict Electricity Prices and Support Certain Consumers in 2023 is likely to live up to its name.

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 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.

In Poland, public opinion and the private sector agree that faster development of renewables is needed to free the country from dependence on fossil fuel imports, and to reduce domestic coal-fired generation. The private sector has funds to develop renewable energy, for its own use or to sell to the market. And no one needs to be persuaded that the current high energy prices will reduce the competitiveness of the Polish economy over time. So the will and the funds are there. But the barrier is connecting renewable energy sources to the grid, which is simply losing its capacity.

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.