A second approach to biomethane | In Principle

As the energy transition progresses, and volatility rocks the energy commodities markets, Poland is not exploiting the potential of biogas and biomethane—generation of electricity and heat from local substrates. The main reasons given for this state of affairs is the lack of relevant regulations for supporting the production of biomethane and for applying technologies increasing the efficiency of projects in this area. The industry’s expectations may at least partially be met by the plans announced by the Ministry of Climate and Environment to amend the Renewable Energy Sources Act.

According to publicly available data, there are already over 400 biogas plants operating in Poland. In September 2025 the first biomethane installation was connected to the gas network of Polska Spółka Gazownicza. According to information provided by the gas system operator, as many as a thousand sets of conditions for connection or declarations on the possibility of connecting biomethane installations to the gas distribution network may have been issued—an impressive number considering that in September there were just two installations of this type in operation. Implementation of the announced projects could increase the exploitation of the capacity of this sector, which is optimistically estimated at 8 million cubic metres per year. This would satisfy nearly half of the annual demand for gas based on Poland’s own resources, significantly cutting gas imports.

Legislative changes may prove vital for unleashing this potential. Aware of this, the Ministry of Climate and Environment has included in the agenda of government work a bill to amend the provisions of the RES Act involving biogas and biomethane.

According to the published outline of the bill, the new regulations would involve in particular:

• Introduction of an auction system for biomethane installations with a capacity of over 1 MW, which is intended to supplement the mechanism for covering the negative balance already in force for smaller installations. Analogous to the approach adopted for the electricity market, the auctions are to be announced, conducted and resolved by the president of the Energy Regulatory Office (URE). Producers introducing biomethane into the gas network would be eligible to take part in the auctions, and the support obtained within the auction system could be stacked with the investment support obtained under other support mechanisms. The auctions would be divided based on the capacity of the installation, with an assumed limit of 2 MW. Support is to be provided under contracts for difference over a maximum of 20 years. The auction winners will be required to launch production of biomethane within four years after the auction is decided, which is also consistent with the auction system for other technologies. Assuming that projects holding a complete set of permits participate in the auctions, this requirement should not pose a substantial risk.
   
• Setting the rules for operation of a direct gas line for biogas, agricultural biogas, and biomethane, thus introducing the ability to more easily and more efficiently use such gaseous fuels in the immediate vicinity of the generating installation. This liberalisation would drop the requirement to obtain a permit from the regulator to install a direct gas line; instead, the operator would submit notification of commencement of delivery of biogas, agricultural biogas or biomethane via the direct gas line.
   
• Establishing rules for measuring quantities of biomethane introduced into the network, consisting of prior blending with another gas to meet the quality specifications for injection of biomethane into the network. Quantities would be settled using the simple difference between the quantity of gas introduced into the network and the quantity of gas added to the biomethane.
   
• Further measures for facilitating the operation of agricultural biogas plants, e.g. enabling installations producing agricultural biogas with a capacity below 1 MW to be sited on the basis of a resolution of the commune council, and simplification of the rules for confirming the data in the registers of generators of electricity from agricultural biogas, heat from agricultural biogas, or agricultural biogas in micro-installations.

In assessing these proposed changes, it must be noted that regulations in this area approved by the parliament earlier this year as part of a legislative package also included widely-debated changes affecting onshore wind energy.

Although those proposed changes ultimately did not enter into force as planned, they did not generate much controversy in their treatment of biogas and biomethane. This is expected to be the case also for the provisions discussed above.

There is only a concern that the new provisions may once again be combined with other regulations which may not achieve a political consensus when it comes to changes in regulation of the energy market.

Radosław Wasiak, adwokat, Energy practice, Wardyński & Partners