40 Billion PLN for Renewable Energy Suppliers

In accordance with the regulations adopted by the EU, each Member State has to meet its renewable energy targets. In the case of Poland, the share of “green” energy in total energy consumed in the country in three years’ time is to rise up to 15%. Despite the deadline looming ahead, Poland is still far away from fulfilling the requirement.

In order to increase the share of renewable energy sources in the energy market, the government has plans to back up “green” energy producers. Public aid is to reach the amount of 40 billion PLN (approximately 10 billion EUR) and Poland’s plans have recently been accepted by the EU Commission.

Poland wants to introduce a new subsidy mechanism that will take the form of auctions. The auctions are to be scheduled in the first quarter of 2018, provided the needed amendments to the act on renewable energy sources come into force at the onset of 2018. The funding, according to plans, is to support the existing power plants that supply electric energy produced using biomass, biogas and water (hydroelectric power stations). Special attention is to be put on biogas production which the government wants to increase. On the other hand, not much support will be directed towards wind farms.

Warsaw also intends to provide support to prosumers, i.e. consumers who produce their own electric energy (e.g. using solar panels) and could sell surplus of the produced electricity on the energy market. This form of aid, however, has not yet been approved by the European Commission.

Today, Poland’s share of RES in energy consumption is 11.8%, more than 3 percentage points away from its target (15%). The goal for the entire EU is 20% of energy coming from renewable energy sources in 2020 and 27% in 2030.