Energy transformation in Poland – main assumptions of the POLISH ENERGY POLICY 2040

KIELTYKA GLADKOWSKI provides legal assistance for the international entities operating in Poland in all aspects in the climate-energy sector and energy transition.

The areas of legal activity of our law firm are as follows:

– broadly understood regulatory assistance;

– greenfields;

– investments in green energy (VC and PE);

– litigation;

– M&A;

– contracts.

KIELTYKA GLADKOWSKI supports corporate Clients in their activities in Poland which concern strategic projects PEP 2040 (Polish Energy Policy 2040).

Polish Energy Policy 2040

Due to the fact that Poland is a Member State of the European Union, the above agreement and the regulation are binding for it. On March 10, 2021, the Minister of Climate and Environment issued an announcement on the state energy policy until 2040 – the so called Polish Energy Policy 2040. It is a document that constitutes Poland’s strategy in the field of energy transformation. The 2020 coronavirus pandemic and the ongoing war in Ukraine affect all global economies, including the energy economy. These events result in an increase in the prices of energy carriers, a threat to the security of supplies, or difficulties with access to raw materials. Given these effects, the energy transformation will entail the involvement of many entities and increased investment outlays. The fuel and energy sector in Poland will be transformed, and related investments will receive financial support from the state budget and EU funds.

The “Polish Energy Policy 2040” is one of the nine objectives resulting from the Strategy for Responsible Development, which defines the basic conditions, goals and directions of the country’s development. The state energy policy contains a description of the condition and conditions of the energy zone and three pillars have been indicated, based on eight specific objectives along with measures necessary for their implementation. The main assumption of the state energy policy is energy security while ensuring the competitiveness of the economy, energy efficiency and reducing the impact of the energy sector on the environment. Specific objectives, on the other hand, concern the energy supply chain and contribute to the implementation of the three pillars.

Fair energy transition

The first pillar is a fair transition. The energy transition aims to protect the regions and communities most affected by the transformation of energy policy. Activities related to the transformation of coal regions will be supported with funds in the amount of about PLN 60 billion. A fair (sustainable) transition is to be based on providing new jobs and building new industries that are to contribute to the transformation of the energy sector.

Zero-emission energy system

The second pillar of Poland’s energy policy is a zero-emission energy system. It is referred to as a “long-term direction” and is to consist, among others, in the implementation of nuclear energy and offshore wind energy, the involvement of industrial energy, while ensuring energy security through the temporary use of energy technologies using gaseous fuels.

Good air quality

The last, third pillar of the energy policy is good air quality in Poland. This is to be a key result of the energy transformation due to the fact that it will be felt by every citizen. It is to consist , among others, in moving away from fossil fuels, using local energy sources and promoting passive and zero-emission houses.

Main assumptions of Polish Energy Policy 2040

1. Energy transformation, taking into account energy self-sufficiency;

2. Increasing the share of RES (Renewable Energy Sources) in all sectors and technologies (wind, solar, aerothermal, geothermal, hydro, ocean energy sources, biomass and the biodegradable fraction of waste). In 2030, the share of RES in gross final energy consumption will be at least 23%, not less than 32% in the power sector (mainly wind and PV) 28% in the heating sector (an increase of 1.1 pp. y/y) 14% in transport (with a large contribution of electromobility);

3. Offshore wind energy in Poland – the installed capacity will reach: approximately 5.9 GW in 2030 to approx. 11 GW in 2040;

4. There will be a significant increase in installed capacity in photovoltaics to: approximately 5-7 GW in 2030 and approximately 10-16 GW in 2040;

5. In 2030, the share of coal in electricity generation will not exceed 56% in Poland;

6. Reduction of the use of coal in the economy will take place in a way that ensures a just transition;

7. Energy efficiency will increase – for 2030, a target of 23% reduction in primary energy consumption vs. PRIMES2007 forecasts;

8. TSOe (Transmission System Operators) and DSO (Distribution Systems Operators) investment programs will be focused on the development of RES and active customers and local balancing;

9. In 2033, the first unit of the nuclear power plant with a capacity of approx. 1-1.6 GW will be launched. Subsequent units will be implemented every 2-3 years, and the entire nuclear program assumes the construction of 6 units;

10. By 2040, the heating needs of all households in Poland will be covered by system heat and by zero- or low-emission individual sources;

11. Natural gas will be a bridge fuel in the energy transformation;

12. In 2030, the gas network will be able to transport a mixture containing approx. 10% of decarbonised gases;

13. The infrastructure of natural gas, crude oil and liquid fuels will be expanded, and diversification of supply directions will be ensured;

14. A number of actions will be aimed at improving air quality, including:

− development of district heating (4-fold increase in the number of effective district heating systems by 2030)

− low-emission direction of transformation of individual sources (heat pumps, electric heating)

− departure from combustion coal in households in cities by 2030, in rural areas by 2040; while maintaining the possibility of using smokeless fuel until 2040

− increasing the energy efficiency of buildings – developing low-emission transport, in particular striving for zero-emission public transport by 2030 in cities with more than 100,000 inhabitants

15. By 2030, GHG emissions will be reduced by approx. 30% compared to 1990;

16. Reduction of the phenomenon of energy poverty to the level of max. 6% of households;

17. The most anticipated development of energy technologies and investments in R&D includes:

– energy storage technologies

– smart metering and energy management systems

– electromobility and alternative fuels

– hydrogen technologies.

The specific objectives of the Polish Energy Policy 2040 include: optimal use of own energy resources, expansion of generation infrastructure and electricity network, diversification of natural gas and crude oil supplies and development of network infrastructure, development of energy markets, implementation of nuclear energy, development of renewable energy sources, development of heating and cogeneration, and improving energy efficiency.

In the announcement, the Minister of Climate and Environment presented the key elements of Poland’s energy policy. The energy transformation is to take place taking into account Poland’s energy self-sufficiency. The use of offshore wind electricity and an increase in the capacity installed in photovoltaics are declared. In 2030, the share of coal in energy generation is not to exceed 56%, and its reduction will take place in a way that ensures a just transition. An increase in the share of renewable energy sources in all sectors and technologies and an increase in energy efficiency were announced (in 2030 the goal is to reduce the consumption of primary energy by 23% compared to the forecasts). In 2033, the first unit of the nuclear power plant (out of six planned) is to be commissioned, and the next ones every 2-3 years. By 2040, the heating needs of all households are to be covered by system heat and by zero- or low-emission individual sources. The infrastructure of natural gas, crude oil and liquid fuels is to be developed and the directions of their supply are to be extended. In the energy transformation, natural gas is to be a bridge fuel. The capacity to transport a mixture containing approx. 10% of decarbonised gases through gas networks is to be completed by 2030. Air quality is to be improved, among others, by the development of system heating, low-emission direction of transformation of individual sources (heat pumps, electric heating), abandonment of coal burning in households (in cities by 2030, in rural areas by 2040), development of low-emission transport – striving for zero-emission public transport by 2030 in cities with more than 100,000 inhabitants. By 2030, greenhouse gas emissions are to be reduced by approximately 30% compared to 1990.

The entities responsible for the implementation of the “Polish Energy Policy 2040” are primarily government and local government administration bodies, government institutions, entities in the fuel and energy sector and business entities that are obliged to fulfill statutory obligations in the field of energy use. Households are also important entities, which are obliged to take care of the rational use of energy and stimulate the energy market.

The development and transformation of the energy sector in Poland involves investment. The financing of this development is based on national and private public funds as well as on funds from the European Union. Funds from the national public sector are to come from the central and local government budgets. The development of the private sector contributes to the increase in the income of central and local government institutions – the increase in profits and revenues in private funds translates into an increase in salaries, which increases the state budget revenues. It is estimated that the funds for investments in the energy sector will amount to PLN 867-890 billion. It is expected that the costs in the electricity generation branch will reach about PLN 320-342 billion, and about 80% of them will be allocated to renewable energy sources and nuclear energy. By 2030, approximately PLN 260 billion is to be transferred from the EU and national funds for the national energy transformation.

The announcement of the Polish Minister of Climate and Environment summarizes the potential sources of financing the “Polish Energy Policy 2040” from domestic and foreign funds. For example, the development of renewable energy sources is estimated to be subsidized in the amount of approximately PLN 450 million per year. On the other hand, from the modernization fund for the modernization of the energy sector, financing can be obtained from around EUR 2,000-4,800 million.

In the list discussed above, attention was paid to the financing of research and development and the implementation of innovative solutions from national funds, the European Union or funds available under international programmes. This may be particularly important for Polish entrepreneurs who, in addition to developing their business, are currently facing a crisis. The companies’ energy transformation includes photovoltaics and renewable energy sources. Photovoltaic technology is not the most popular form of improving energy efficiency. Before solar panels are installed, an analysis is carried out to determine which industrial mechanisms consume the most water, heat and energy. On this basis, solutions are adapted to bring savings. The use of solar energy can be a suitable solution for small businesses as well as for large entrepreneurs. The use of renewable energy sources results in lower energy prices (which is important for the entrepreneur) and allows for independence from fossil fuels (important for the development of the energy sector). For example, the development of direct connections between the installation and the end user allows for the reduction of harmful emissions and leads to the energy transformation of the company.

Renewable energy sources, due to their profitability, are increasingly competing with traditional technologies. The result is accelerating progress and innovation in this field. The main obstacle to the widespread use of renewable energy sources is its instability, but the development and discussion on them on the international arena results in the improvement of energy storage devices and systems.

Wind energy, the use of which is to be increased, has an impact on lowering energy prices. Wind farms are defined as sources with zero variable costs, i.e. they do not include expenses for the purchase of fuel and are used first. Wind energy is becoming more and more common due to the increasing production and installation capacity of wind farms. In 2016, the Polish Act on investments in wind farms was introduced, which regulated the minimum distance of a wind farm from a residential building. The introduced rule, called the “10H rule” (H – height), stipulates that the wind farm must be located at a distance equal to or greater than ten times the height of the wind farm from the residential building. The introduction of such a regulation prevented the development of onshore wind energy, because its application excluded 99.7% of Poland from the possibility of erecting wind farms in this area. However, work is currently underway to amend the above-mentioned act, which is to provide for the possibility of reducing the distance established in the act. The decision on a shorter distance is to be made by the communes that draw up local spatial development plans. The new regulations are also intended to impose an obligation on the investor, who will have to offer at least 10% of the installed capacity of the wind farm to the residents of the commune where it will be located. The inhabitants of the commune would use the energy as a virtual prosumer. According to the legal definition, a virtual prosumer of renewable energy is an end user who generates electricity exclusively from renewable energy sources for his own needs in a renewable energy source installation connected to the power distribution network in a place other than the place where electricity is supplied to this recipient. Residents of the commune who could use such a solution would settle accounts with the investor at market prices. According to some experts, limiting profits may discourage investors from investing their capital in renewable energy sources.

Expansion of the Polish generation infrastructure and network electricity

The power balance must ensure the stability of energy supplies and the flexibility of the power system operation, as well as the implementation of international obligations and respond to changes in the energy market and global trends. At the same time, only an efficient and sufficiently developed infrastructure will ensure security of energy supply. The expansion of the generation and network infrastructure will lead to the creation of an almost new power system by 2040, based largely on zero-emission sources.

Poland will strive to cover the demand for power with its own resources. Domestic coal resources will remain an important element of Poland’s energy security, but the increase in demand will be covered by sources other than conventional coal capacity. The share of coal in the structure of energy consumption will not exceed 56% in 2030, and with the increased prices of CO2 emission allowances, it may fall even to 37.5% Renewable sources will play an increasingly important role – their level in the structure of domestic electricity consumption net will not be less than 32% in 2030, which will primarily enable the development of photovoltaics and offshore wind farms, which, due to economic and technical conditions, have the greatest development prospects. In order to achieve such a level of RES in the balance, it is necessary to develop grid infrastructure, energy storage technologies, as well as the expansion of gas units as regulatory capacities. In 2033, nuclear energy will be implemented (in total, 6 nuclear units with a total capacity of 6-9 GW will be built), which will strengthen the basis of the system and contribute to the reduction of pollutant emissions from the sector. Also in order to reduce pollutant emissions from the energy sector, low-efficiency generation units will be gradually phased out and replaced with higher-efficiency power units (including cogeneration units). In the perspective of 2040, an almost new power system will be built, based on low- and zero-emission sources.

The development of the transmission infrastructure will allow for the evacuation of power from existing and new sources (including wind and nuclear energy) and improvement of the reliability of power supply, as well as to increase the possibility of cross-border exchange, while maintaining the principle of self-sufficiency of generation capacity in Poland. Investments in distribution systems (grid restoration, medium-voltage network cabling) will improve the quality of supplies to end users, which means, in particular, shortening the length of power supply interruptions. In addition, investments will contribute to the gradual transformation of a passive (one-way) network into an active (two-way) network. In order to improve operational efficiency in emergency situations, a digital communication system will be implemented between distribution system operators, and the infrastructure will be equipped with control devices. In addition, smart power grids will be implemented to integrate the behavior and activities of all entities and users connected to them.

Diversification of natural gas and crude oil supplies and expansion of network infrastructure in Poland

Poland’s strong dependence on natural gas supplies from one direction requires diversification activities. For this purpose, the Baltic Pipe will be built (Norway-Denmark-Poland connection), the LNG terminal in Świnoujście will be expanded and the FSRU floating terminal will be built in the Gulf of Gdańsk. Connections with neighboring countries will also be expanded. In order to enable further development of the gas market, use natural gas import opportunities and eliminate the so-called white spots, the national transmission and distribution network will be expanded (also with the use of local LNG and biogas regasification stations) and storage infrastructure. This is important because natural gas is a transition fuel for the transformation.

Poland is even more dependent on crude oil supplies, therefore it is necessary to ensure the conditions for receiving crude oil and a well-functioning internal infrastructure. The possibility of deliveries by sea will be increased, which will be supported by the expansion of the Pomeranian oil pipeline, as well as oil and liquid fuel storage depots. Deliveries of petroleum products depend on a properly developed network of pipelines, especially in the southern part of Poland, which will also be expanded, e.g. the Boronów-Trzebinia pipeline.

Development of energy markets – STRATEGIC PROJECTS

A. Implementation of the Action Plan (to increase cross-border electricity transmission capacity)


STRATEGIC PROJECT C – Development of electromobility

The electricity market is subject to further liberalisation in Poland. The active participation of recipients in the energy market and the strengthening of their position on this market are promoted. This means extending the information policy, enabling consumers to actively participate in the energy market through, among others, participation in DSR and arrangement of general distribution agreements. In order to protect the competitiveness of Polish energy-intensive enterprises, mechanisms will also be addressed to this group to reduce the cost burden of support systems. In order to ensure better operating conditions for the transmission and distribution grid, selected services will be developed and acquired, e.g. DSR and system services, the possibility of creating local balancing areas will also be ensured. Cross-border transmission capacities will be gradually increased thanks to the implementation of the Action Plan, which is part of the systematic expansion of the electricity transmission network in Poland.

The natural gas market will be subject to further liberalization, and the means to achieve this goal will be, inter alia, releasing trading companies from the tariff obligation for the last group of recipients, i.e. households. It is also important to strengthen Poland’s position on the European gas market, which will be achieved primarily through the creation of a regional gas transmission and trading center (hub). For this purpose, it is necessary to further develop the service and commercial offer. The market will also develop due to the progressing gasification of the country and an increase in the use of gas in segments that have so far accounted for a small part of total consumption.

The market for petroleum products is relatively stable, although it will undergo transformations in the coming years. It is necessary to organize the ownership structure of the fuel market segments so that refinery companies are focused on the production and trade in fuels, and the state has control over the infrastructure crucial for fuel security. The market must respond to the increase in the use of petrochemicals in the economy (from 3D printers to construction), but also take measures to reduce the emission of traditional fuels. At the same time, part of the demand for petroleum products will be covered by greater use of biocomponents and alternative fuels (LNG, CNG, biomethane, hydrogen, synthetic fuels) and the development of electromobility.

The hydrogen market will be subject to development, supported by successive regulatory work and adaptation of support systems for investment, research and development activities and the construction of the domestic technological base. It is necessary to use favorable conditions for the development and financing of hydrogen technologies created under EU policy (European Green Deal, reform of the European gas market). In the long term, the development of hydrogen technologies with the simultaneous development of the hydrogen economy value chain will support an increase in the share of renewable energy sources (over-to-x energy storage technology), will give a new role to the gas sector in terms of storage, transmission and distribution of natural gas and hydrogen mixtures, and will tool for decarbonising transport and industry. Parallel to the planned European regulations, national law regulating the development of the hydrogen market will be created.

Implementation of nuclear energy

In 2033, the first nuclear unit with a capacity of 1-1.6 GW will be commissioned in Poland, the next ones will be commissioned every 2-3 years – the entire nuclear program assumes the construction of 6 units by 2043 with the increase in demand for electricity. Nuclear power plants ensure the stability of energy production with zero emission of air pollutants. At the same time, it is possible to diversify the energy generation structure at a reasonable cost. The currently used technologies (generation III and III+) and rigorous world standards in the field of nuclear safety ensure high safety standards for the operation of the nuclear power plant and waste storage. A significant part of the nuclear program can be implemented with the participation of Polish enterprises.

The implementation of nuclear energy requires prior legal changes to streamline the implementation of the program, as well as the completion of work on the financing model. After completion of the research, the final selection of the location for the first and subsequent units of nuclear power plants will be made, and a new repository for low- and medium-level radioactive waste will be launched. The technology and general construction contractor will also be selected. Actions will also be taken to ensure adequate human resources – both for the construction of the power plant and its proper operation, as well as for nuclear supervision.

There is also the potential to use high-temperature reactors (HTR), which, not being an alternative to large-scale light-water nuclear units, could in the future be used mainly as a source of process heat for industry.

Development of renewable energy sources in Poland

Implementation of offshore wind energy in Poland

The increase in the role of renewable energy sources results from the need for a low-emission energy transformation through the diversification of the energy balance and reduction of its emissivity and contribution to the EU-wide 32% RES target in gross final energy consumption, as well as the falling costs of these energy generation technologies. Poland declares to achieve at least a 23% share of RES in gross final energy consumption in 2030 (in the power sector – at least 32% net, in heating and cooling – an increase of 1.1 percentage points y/y, in transport – 14% ). Bearing in mind the expected technological development, offshore wind farms will play a special role in achieving the RES target, the development of which is a strategic decision regarding the development of key competences in this area in Poland, allowing for economic development. Further development of photovoltaics is expected, the operation of which is correlated with the summer peaks in electricity demand, as well as onshore wind farms, which generate electricity in similar time intervals as offshore wind energy. An increase in the importance of biomass, biogas, geothermal energy in system heating and heat pumps in individual heating is also expected, and it is necessary to increase the use of advanced biofuels and electricity in transport.

Distributed energy based on the production of energy from RES, sale, storage or participation in DSR programs by individual entities (e.g. active consumers, renewable energy prosumers and others) and energy communities (e.g. energy clusters, energy cooperatives) will also develop. By 2030, an approx. 5-fold increase in the number of prosumers is expected and an increase in the number of energy-sustainable areas at the local level to 300. For the safety of NPS operation, connecting an unstable energy source in the future will be associated with the obligation to ensure balancing in periods when RES does not supply electricity to the grid. RES support mechanisms will favor solutions ensuring maximum availability, with relatively the lowest cost of energy generation and satisfying local energy needs, as well as hybrid solutions combining various RES technologies, self-balancing, e.g. with the use of energy storage facilities.

Development of heating and cogeneration in Poland

Development of system heating in Poland

Covering the heating needs in Poland takes place at the local level, which is why it is extremely important to ensure energy planning at the level of municipalities and regions – it is of key importance for rational energy management, improvement of air quality and the extraction of local potential. A useful tool will also be the launch of a nationwide heat map, which will facilitate the planning of covering heating needs. The main goal was to cover all household heating needs in 2040 in Poland in a zero- or low-emission way.

In areas where there are technical conditions for the supply of heat from an energy-efficient district heating system, consumers should use district heating in the first place, unless they use a more ecological solution. It is necessary to consistently enforce this obligation. By 2030, approximately 1.5 million new households will be connected to the district heating network. At the same time, a new market model will be developed so that heat prices are acceptable to consumers and, at the same time, allow covering justified costs together with a return on invested capital. At the same time, the goal is that in 2030 at least 85% of the heating or cooling systems in which the ordered capacity exceeds 5 MW meet the criteria of an energy-efficient heating system. The development of high-efficiency cogeneration, heating power plants, increasing the use of RES and waste in system heating, modernization and expansion of heat and cold distribution systems, and the popularization of heat storage and smart grids will contribute to this.

Sources with the lowest possible emissivity (heat pumps, electric heating, natural gas, smokeless fuels) should be used to cover heating needs on an individual basis, and coal should be phased out – in cities by 2030 and in rural areas by 2040. Monitoring of emissions in single-family houses will be increased, and those responsible for pollution will be held accountable.

Improving energy efficiency

Promoting energy efficiency improvement

Poland sets the national target for improving energy efficiency by 2030 at the level of 23% in relation to primary energy consumption in 2020, according to the PRIMES 2007 forecast. The potential for improving energy efficiency lies in almost the entire economy. It is also associated with the implementation of new technologies and the increase in innovation of the economy, affecting its attractiveness and competitiveness. Pro-efficiency measures lead to a reduction in energy consumption and energy costs, although the benefits should often be considered in the perspective exceeding the payback period of these investments.

The increase in the energy efficiency of the economy will be created by obliging a group of entities to improve energy efficiency or purchase energy efficiency certificates, but also with the use of legal and financial incentives for pro-efficiency activities. The exemplary role of the public sector is also of great importance, resulting in investments that will be characterized by innovation and higher energy efficiency standards and standards, as well as improving awareness of rational energy consumption with the full involvement of the public (local communities, entrepreneurs) focused on energy-efficient devices, products and technologies .

Inefficient use of energy is strongly related to the problem of low emissions (combustion of low-quality coal and waste in households; improper operation of installations; coal combustion in low-efficiency local heating plants; transport emissions). The main tool to combat the problem is the widespread thermomodernization of residential buildings and ensuring effective and ecological access to heat, which will also have an impact on reducing the problem of energy poverty by 30%, i.e. to a maximum of 6% of households in 2030. The development of electromobility and hydromobility as well as a number of activities planned for the development of the alternative fuels market will contribute to the reduction of transport emissions. In the area of public transport, it is expected to strive for a deep reduction of GHG emissions, and in cities with more than 100,000 inhabitants – achieving zero-emission public transport from 2030.

Financial framework and sources of funding within PEP2040

Also noteworthy is the work carried out on the EU forum on the taxonomy, i.e. a uniform EU classification system, which is designed to involve private capital in financing the low-emission transformation. Harmonized criteria will be introduced to determine whether an economic activity is environmentally sustainable. The taxonomy will apply to financial products that include sustainability criteria in their investment strategy. It is likely that the cost of private capital financing of an activity that will not be perceived as sustainable will be higher than in the case of an economic activity perceived as sustainable – which means that it will be more difficult to finance with commercial debt.

The PEP2040 financial framework is based on parts and sections of the state budget, expenditure of units of the general government sector, the budget of European and other foreign funds. A significant part of the expenses will be covered by the funds of companies from the fuel and energy sector, other private funds or debt financing. The pool of sources also includes support systems that are indirectly covered by energy consumers.

Polish national legal regulations within energy transformation:

Act of April 10, 1997 – Energy Law (Journal of Laws of 2020, item 833, as amended)

Act of November 29, 2000 – Atomic Law (Journal of Laws of 2019, item 1792, as amended)

Act of April 27, 2001 – Environmental Protection Law (Journal of Laws of 2020, item 1219, as amended)

Act of August 25, 2006 on biocomponents and liquid biofuels (Journal of Laws of 2020, item 1233, as amended)

Act of 25 August 2006 on the Fuel Quality Monitoring and Control System (Journal of Laws of 2021, item 133)

Act of 6 December 2006 on the principles of development policy (Journal of Laws of 2019, item 1295, as amended)

Act of 16 February 2007 on stocks of crude oil, petroleum products and natural gas and the rules of conduct in situations of threat to the fuel security of the state and disturbances on the oil market (Journal of Laws of 2020, item 411, as amended )

Act of 26 April 2007 on crisis management (Journal of Laws of 2020, item 1856, as amended)

Act of 3 October 2008 on the provision of information on the environment and its protection, public participation in environmental protection and environmental impact assessments (Journal of Laws of 2021, item 247)

Act of June 9, 2011 – Geological and Mining Law (Journal of Laws of 2020, item 1064, as amended)

Act of 29 June 2011 on the preparation and implementation of investments in nuclear power facilities and accompanying investments (Journal of Laws of 2018, item 1537, as amended)

Act of 14 December 2012 on waste (Journal of Laws of 2020, item 797, as amended)

Act of February 20, 2015 on renewable energy sources (Journal of Laws of 2020, item 261, as amended)

Act of 20 May 2016 on energy efficiency (Journal of Laws of 2020, item 264, as amended)

Act of 12 June 2015 on the greenhouse gas emission allowance trading system (Journal of Laws of 2020, item 136, as amended)

Act of July 20, 2017 – Water Law (Journal of Laws of 2020, item 310, as amended)

Act of 8 December 2017 on the capacity market (Journal of Laws of 2020, item 247, as amended)

Act of 11 January 2018 on electromobility and alternative fuels (Journal of Laws of 2021, item 110)

Act of 5 July 2018 on the National Cybersecurity System (Journal of Laws of 2020, item 1369)

Act of 14 December 2018 on the promotion of electricity from high-efficiency cogeneration (Journal of Laws of 2021, item 144)

EU regulations within energy transformation

Directive on the natural gas market – Directive (EU) 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC (Official Journal EU L 211 of 14.08 2009, p. 94, as amended)

Ecodesign Directive for energy-related products – Directive (EU) 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for setting ecodesign requirements for energy-related products (Official Journal EU L 285 of 31.10.2009, p. 10, as amended)

IED Directive – Directive (EU) 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control) (Official Journal EU L 334 of 17.12.2010, p. 17)

MCP Directive – Directive (EU) 2015/2193 of the European Parliament and of the Council of 25 November 2015 on the limitation of emissions of certain pollutants into the air from medium combustion plants (OJ L 313 of 28.11.2015, p. 1)

NIS Directive – Directive (EU) 2016/1148 of the European Parliament and of the Council of 6 July 2016 on measures for a high common level of security of network and information systems across the Union (cybersecurity) (Official Journal EU L 194 of 19.07 .2016, p. 1)

Pollution Reduction Directive – Directive (EU) 2016/2284 of the European Parliament and of the Council of 14 December 2016 on the reduction of domestic emissions of certain types of atmospheric pollutants, amending Directive 2003/35/EC and repealing Directive 2001/81/EC (Journal EU Office L 344 of 17/12/2016, p. 1)

Energy Efficiency Directive / EED Directive – Directive (EU) 2018/2002 of the European Parliament and of the Council of December 11, 2018 amending Directive 2012/27/EU on energy efficiency (Official Journal EU L 328 of 21.12.2018, p. 210) [from the “Clean energy for all Europeans” package]

Energy Efficiency of Buildings Directive – Directive (EU) 2018/844 of the European Parliament and of the Council of 30 May 2018 amending Directive 2010/31/EU on the energy performance of buildings and Directive 2012/27/EU on energy efficiency (Journal EU Office L 156 of 19.06.2018, p. 75) [from the package “Clean energy for all Europeans”]

Stocks Directive – Directive (EU) 2009/119/EC of the European Parliament and of the Council of 14 September 2009 imposing an obligation on Member States to maintain minimum stocks of crude oil or petroleum products (Official Journal EU L 265 of 09.10.2009, page 9, as amended)

RES Directive / RED II Directive – Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (recast) (OJ L 328 of 21.12.2018, 82, as amended) [from the package “Clean energy for all Europeans”]

Internal Market in Electricity Directive / Directive on common rules for the internal market in electricity – Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market in electricity and amending Directive 2012/27/EU [from “Clean energy for all Europeans”] (Official Journal EU L 158 of 14.06.2019, p. 125)

Regulation 715/2009 – Regulation (EC) No. 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks and repealing Regulation (EC) No. 1775/2005 (Official Journal EU L 211 of August 14, 2009, p. 36)

ESR Regulation – Regulation (EU) 2018/842 of the European Parliament and of the Council of 30 May 2018 on binding annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action to meet from the obligations arising from the Paris Agreement and amending Regulation (EU) No. 525/2013 (Official Journal EU L 156 of 19.06.2018, p. 26)

Energy Union Governance Regulation / Governance Regulation – Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations 94/22/EC of the European Parliament and of the Council, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EC and 2013/30/EU, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulations (EU) No. 525/2013 of the European Parliament and of the Council [from the package “Clean energy for all Europeans”] (OJ L 328 of 21.12.2018, p. 1, as amended)

SoS Regulation – Regulation (EU) 2017/1938 of the European Parliament and of the Council of 25 October 2017 concerning measures to safeguard security of natural gas supply and repealing Regulation (EU) No 994/2010 (Official Journal EU L 280 of 28.10.2017 , page 1)

Regulation on the Agency for the Cooperation of Energy Regulators (ACER) – Regulation (EU) 2019/942 of the European Parliament and of the Council of 5 June 2019 establishing the European Union Agency for the Cooperation of Energy Regulators (Official Journal EU L 158 of 14.06.2019, p. 22) [from the package “Clean energy for all Europeans”]

Regulation on risk preparedness in the electricity system – Regulation (EU) 2019/941 of the European Parliament and of the Council of 5 June 2019 on preparedness for risks in the electricity sector and repealing Directive 2005/89/EC (Journal of Laws EU L 158, 14.06.2019, p. 1) [from the Clean Energy for all Europeans package]

List of possible sources of financing PEP2040 – domestic and non-national funds[1]

[1]This list is not an exhaustive catalog of PEP2040 funding sources, prepared in accordance with information available at the end of Q2 2020.

In the case of “-” the amount or horizon is difficult to determine.

name / typefinancing areaamount of fundshorizonadditional information
RES support systems:
a) “green certificates and “blue certificates” – aid measure number: SA.37345 (2015/NN),

b) energy purchase auctions for electricity generated from RES – aid measure number: SA.43697 (2015/N),

c) FiT and FiP tariffs – aid measure number: SA.51852 (2018/X)
development of renewable energy sourcesa) PLN 450 million (annually)  

b) PLN 40,000 million  

c) PLN 622.2 million  
2040*The amount of funds for “green certificates” is an estimate (it is also not a maximum amount), taking into account the fact that the price of certificates of origin is determined on the market.

*Support schemes have been adopted for the period of:
a) until June 30, 2016,
b) until June 30, 2021 (possibility of organizing auctions),
c) until June 30, 2021,
In accordance with the decision of the EC on the notification of the RES support scheme, the auction mechanism should not exceed the indicated amount in the 2040 perspective.
Support scheme – capacity market – aid measure number: SA.46100 (2017/N)providing an investment impulse for stable and reliable energy suppliesPLN 4,000 million (annually)2020–2042The costs of the mechanism will be included in the electricity bills.
It has been in force since Q3 2020. The system has been approved by the EC for a period of 10 years from the date of the first auction, however, the payments of aid granted under this system will also be made after this period.
Support scheme for high-efficiency cogeneration – aid measure number SA.51192 (2019/N)development of high-efficiency cogenerationPLN 36,300 million2019–2048The costs of the mechanism will be included in the electricity bills. The support scheme has been approved by the EC for a period of 10 years, however, the payments of the aid granted under this scheme will also be made after this period.
Support will be available only to units for which the emission/emissivity of carbon dioxide meets the levels specified in the Act.
SA aid program. 52832 (2019/N) – Poland – Change of state aid to the Polish coal sector in 2015-2023aid for exceptional costs and until 2016 for the closure of coal production unitsPLN 12,991.97 million, including PLN 320.33 million for the closure of production units2015–2023The assistance is provided in the form of: subsidies; exemptions from mandatory fees and penalties, exemptions from payments to PFRON and fees and penalties to NFOŚiGW and PGWWP; exemptions from tax on civil law transactions (PCC); exemptions from corporate income tax (CIT); exemptions from profit-sharing payments; exemptions from the obligation to obtain a license for methane extraction.  
Funds of the National Fund for Environmental Protection and Water Management, including:
a) Energy Plus
b) District Heating – pilot project
c) Agroenergy
d) Polish Geotermia Plus
e) My Electricity
f) Co-financing of projects financed under the first axis of OPI&E 2014–2020
g) Clean Air Programme)
h) Funds from the long-term commitment of the National Fund for Environmental Protection and Water Management for the development of low-emission transport*
actions improving energy efficiency, low-emission energy sources, including renewable energy sources and high-efficiency cogeneration system heating environmental education other green investments improving air quality low-emission transport, including the development of electromobility and transport based on alternative fuels  a) PLN 4,000 million
b) PLN 500 million
c) PLN 200 million
d) PLN 600 million
e) PLN 1,000 million
f) PLN 2,000 million    
g) PLN 103,000 million
h) PLN 6,700 million
2019-2025/2027*Details on the National Fund for Environmental Protection and Water Management power sources and the offer are available at: and Finansowania/
e) The My Electricity program is supplied from the climate account, the funds come from the ETS and the National Fund for Environmental Protection and Water Management acts as the National operator of the green investment scheme.
h) The “Clean Air” program includes subsidies (including those granted under the Stop Smog programme), loans for municipalities and a tax relief for thermomodernisation – PLN 63.3 billion. Loans granted by banks: PLN 40 billion. h) Funds for this purpose may be allocated, among others, to: fleet purchase, charging infrastructure, public transport, promotional and educational activities. The funds come from targeted subsidies from the state budget, funds provided by the TSO, proceeds from the substitution fee and the emission fee.
Thermomodernization and Renovation Fundthermal modernization projectssince 1999Fund supplied from the state budget. In the years 1999-2018, PLN 2,575 million was transferred to the Fund, further amounts are difficult to determine.
White certificates support systemimproving the energy efficiency of enterprises2030Possible extension of the horizon
NCBiR funds, research projectsresearch and development, early implementation of innovative solutionsNational funds, EU funds and other funds available under international programmes
European funds
– operational programs in the financial perspective 2014-2020
a) RES
b) energy efficiency in buildings
c) energy efficiency in enterprises
d) district heating networks
e) high-efficiency cogeneration
f) power infrastructure
g) gas infrastructure
a) EUR 1,217 million
b) EUR 2,240 million  
c) EUR 227 million  
d) EUR 408 million
e) EUR 367 million
f) EUR 700 million
g) EUR 620 million
2014–2020Funds in the process of disbursement, implementation of projects for the implementation of PEP2040 even until 2023. http://www.fundusze
European funds
– operational programs in the financial perspective 2021-2027
a) RES
b) energy efficiency in buildings
c) energy efficiency in enterprises
d) district heating networks
e) high-efficiency cogeneration
f) power infrastructure
g) gas infrastructure
Estimated above EUR 6,000 million (probably around
EUR 3,000-4,000 million in national programs and similar allocation in Regional Operational Programmes)
2021-2027Funds at the stage of financial engineering – neither the total framework of funds nor the division into individual programs are known
European Funds
– Connecting Europe Facility (CEF – Connecting Europe Facility )
construction and modernization of energy infrastructure, smart power grids, CCS (including projects of common interest – PCI, Project of Common interests )PLN 40.00 million2021-2025 
European Funds
– Just Transition Fund as part of the “Green Deal for Europe”
transformation of mining regionsEUR 3,500 million2021-2027 
Modernization Fundmodernization of the energy sectorapprox. EUR 2,000 – 4,800 million2021-2030The fund will be financed from the auction of 2% of all emission allowances under the EU ETS system. The amount of funds depends on the prices of allowances. The Fund will be available to EU countries whose GDP per capita is lower than 60% of the EU average, including Poland. Solid fuel generation projects will be excluded, except for district heating in Bulgaria and Romania.
InvestEUlow-carbon infrastructure, R&D, SMEs, competence buildingEstimated above EUR 6,000 – 7,000 million (allocation for the energy sector difficult to estimate)2021-2027Under the existing Investment Plan for Europe ( Juncker Plan) programme, more than EUR 3.7 billion has been allocated for investments in Poland for the implementation of investments worth almost EUR 18.6 billion.
European Recovery and Resilience Facility“green” transformation of the economy (including the energy area), digital transformationestimated around EUR 21,900 million2021-2031A new program to give an investment impulse wz. green economic transformation and digital transformation during the economic slowdown caused by COVID-19.
Horizon Europeresearch and development2021-2027Successor to Horizon 2020
LIFE programmeenvironmental and climate protectionaround EUR 5,000 million2021-2027Continuation of the program started in 1992.
Structural Reform Support Programmesupport for national institutions (ministries, central units and local governments) in implementing structural reformsEUR 222.8 million*2014–2020*The amount is the total (for all EU Member States) budget of the instrument; the implementation of projects is conducive to the implementation of PEP2040
Norwegian Financial Mechanism, EEA Financial Mechanismhigh-efficiency cogeneration, modernization of networks and sources in heating systems, improvement of energy efficiency in schools, geothermal energy, small hydropower, pellet production projectsEUR 111.289 million2021-2024The amount includes the grant available for the indicated activities and national co-financing.  
International Financial Institutions, including the World Bank, EIB, EBRDin particular, anti-smog measures, improvement of energy efficiency, renewable energyPrograms and mechanisms are created on an ongoing basis as a response to the observed needs