The RES Act amendment entered into force on 29 August 2019. The regulations provide a legal basis for this year’s auctions.

The Ministry of Energy expects that green energy contracted in auctions of 2018 and those planned for 2019 will allow Poland to meet the target of 15% RES share in final energy consumption in 2020. According to the ministry’s calculations, the total increase in electricity production from RES under 2019 auction will be in the range of 10 TWh, and together with 2018 auctions – approx. 35 TWh.

Basis for auctions in 2019

Regulations of the RES Act amendment determine the maximum volume and value of electricity to be contracted from specific RES technologies in 2019.  Thanks to these regulations, auctions in 2019 will provide support for 2.5 GW in onshore wind farms and ca. 1 GW in PV.

The publication date of the RES Act amendment also has an impact on the auction date. The Energy Regulatory Office, responsible for announcing and running the auction, has not set the exact date yet. However, information from ERO representatives suggests that auctions will most likely take place in December 2019.

More time for construction

The regulations are favourable to new projects. They extend the deadline for first delivery of electricity to the grid to 24 months for PV and to 33 months for onshore wind (from the date of session closing). The so-called “Distance Act” has also been modified. According to its provisions, building permits for new wind turbines issued before its entry into force remain valid until 16 July 2021. The new expiration date is 5 years from the entry into force of the amendment, i.e. 29 August 2024.

Prosumers and co-operatives will help meet the targets

Important regulations also apply to the so-called prosumer package, targeted at small and medium-sized companies who are not “professional” energy producers. These entrepreneurs will be able to build a micro-installation of up to 50 kW at their business premises and sell electricity to the grid at fixed conditions (with an obliged seller or other selected entity), and use discounts when consuming electricity from the grid.

According to Jadwiga Emilewicz, the Minister of Entrepreneurship and Technology, this solution will effectively mitigate the increase in electricity prices related to the so-called carbon tax. The amended RES act also stipulates the rules for establishing and running energy cooperatives, anticipated by residents of smaller towns and rural areas.

– The prosumer package is another good news in the energy sector in Poland. It will not only allow for cheap and clean electricity for small and medium-sized companies in Poland, but also help us meet our RES target we had declared to the European Commission – said Jadwiga Emilewicz.

Changes for biogas a bit later

However, not all provisions of the amended RES Act come into force immediately. Among those deferred provisions are those related to definition of biogas. These will become valid from 1 January 2020. The legal basis for the Minister of Energy to issue a regulation on detailed technical requirements for micro-installations, issuing connection conditions and connection notifications, will come into force 6 months later, i.e. on 29 February 2020.