A breath of fresh air for renewable energy source installations in Poland

Poland

On 29 June 2018, the President signed amendments to the Renewable Energy Sources Act, Act on investments in windfarms and the Construction Law (the “Amendments”).

The Amendments represent a significant step forward in the field of national regulation regarding renewable energy, adjusting the Renewable Energy Sources Act to the requirements of EU law and ensuring the balanced development of RES market in Poland.

  • One of the main aims of the Amendments is to set frames for renewable energy auctions in 2018. The Amendments also introduce feed-in-tariff (FIT) and feed-in premium (FIP) systems - financial support mechanisms for small capacity hydro and biogas installations.
  • The Amendments also restore tax assessment rules that were in force before 1 January 2017, according to which only the construction elements of the wind turbine (such as foundation and tower) are to be taxed.
  • The Amendments lift the ban on the modernization of existing onshore windfarms’ turbines that do not meet the conditions introduced mid-July 2016 by the Act on investments in windfarms and extend the construction and start-up period for windfarms, which have valid building permits but do not meet the requirements of the Act on investments in windfarms.
  • Offshore projects are released from the currently binding obligation to have a valid building permit to apply for participation in an auction.
  • 5 percent of the amount and value of electricity in auctions is guaranteed for RES installations located outside of Poland.
  • The Amendments also introduce the obligation to sell the renewable energy on the power exchange. The producer who wins the auction may sell the produced energy exclusively on the power exchange, otherwise it loses the right to receive the financial support.

The new law will come into force (with a few exceptions) 14 days after the date of its publication.