Energy Law at Poland
Poland's energy legal framework is undergoing significant transformation as the country seeks to balance its energy security, economic interests, and environmental commitments. Below is an overview of the key legislative developments and regulatory frameworks shaping Poland's energy sector:
⚡ Electricity and Renewable Energy
Energy Law (Act of 10 April 1997)
The Energy Law is the cornerstone of Poland's energy regulation, governing the electricity, gas, and heating sectors. It establishes licensing requirements for energy generation, transmission, distribution, and trading, and sets out the roles of the Energy Regulatory Office (URE) and other authorities. Recent amendments have introduced provisions to facilitate the integration of renewable energy sources (RES) into the national grid.
Renewable Energy Sources Act (Act of 20 February 2015)
This Act regulates the development and support of RES in Poland. Amendments have been made to align with EU directives, including the RED II and RED III directives. Key updates include:
Hybrid RES Installations: Allowing multiple RES installations to share a single grid connection, known as cable pooling.
Energy Clusters: Encouraging local energy communities to collaborate on energy generation and distribution.
Biomethane and Renewable Hydrogen: Introducing support mechanisms and Guarantees of Origin (GOs) for these energy carriers.
Prosumers: Enhancing incentives for individuals and businesses to generate and consume their own renewable energy.
Offshore Wind Energy
Poland is investing in offshore wind energy, with a target of 5.9 GW capacity by 2030. The Offshore Wind Energy Act (2021) provides a framework for the development of offshore wind farms, including permitting processes and grid connection rules.
🔌 Electricity Market and Grid Regulation
Electricity Market Act
This Act regulates the operation of the electricity market, including market organization, electricity trading, and balancing. It outlines the responsibilities of market participants and the role of the transmission system operator (TSO), PSE.
Grid Connection Rules
Recent amendments have streamlined the process for connecting RES installations to the grid, including:
Simplified Permitting: Shortening timelines for obtaining permits for RES projects.
Direct Lines: Allowing direct connections between RES generators and consumers, bypassing the grid.
Grid Access Fees: Introducing fees to cover the costs of maintaining system quality standards and reliability.
🔥 Gas Sector and Energy Security
Gas Law
The Gas Law governs the natural gas sector, including transmission, distribution, and storage. Recent amendments have focused on enhancing energy security, such as:
Tariff Protection: Extending the period for approving gas tariffs for domestic customers and strategic public benefit institutions until 31 December 2027.
Licensing Requirements: Abolishing exemptions for small gas traders, requiring all traders to obtain a gas trading
Gas Quality Standards: Specifying procedures for changing the type of gas fuel supplied in the gas network.
Strategic Reserves and Infrastructure
Poland is investing in gas infrastructure to enhance energy security, including the construction of LNG terminals and the expansion of domestic storage capacities.
🌍 Climate and Energy Policy
National Energy and Climate Plan (NECP)
Poland's NECP outlines the country's energy and climate objectives for the period 2023–2030, including:
Renewable Energy Target: Achieving a 56% share of RES in the electricity mix by 2030.
Investment Plans: Allocating 792 billion zlotys ($205 billion) to reduce greenhouse gas emissions by 50.4% and cut primary energy consumption by 16.7% by 2030, compared to 2020 levels.(
EU Compliance and Green Deal
Poland is working to align its energy policies with EU directives and the European Green Deal, focusing on decarbonization, energy efficiency, and the integration of renewable energy sources.
🏛️ Institutional Framework
Energy Regulatory Office (URE): The central authority responsible for regulating the energy sector, including issuing licences, approving tariffs, and overseeing market operations.
Polish Energy Group (PGE): The largest energy company in Poland, involved in electricity generation, distribution, and trading.
Polish Gas and Oil Company (PGNiG): The state-owned company responsible for natural gas exploration, production, and distribution.
Transmission System Operator (TSO): PSE manages the electricity transmission system, ensuring the balance between supply and demand.
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