Summary of energy law changes. How the changes of the last quarter of 2024 will affect the market in 2025.
The last quarter of 2024 brought quite a few changes to Polish Energy Law, which set new directions for the market in 2025.
Hydrogen has gained dedicated regulation, the development of offshore wind farms is accelerating, procedures for renewable energy investments have been simplified and an energy price freeze is in place to protect consumers. These developments have important implications for the energy transition and the shaping of the market in the coming years.
Hydrogen law in Poland
Hydrogen has been identified as one of the priorities for the implementation of the European Green Deal, the main goal of which is to achieve a climate-neutral Europe by 2050.
Until now, energy law did not regulate hydrogen directly. Hydrogen was treated as ‘another type of combustible gas’ and was only regulated when supplied through the gas network. The amendment implements a milestone of the National Recovery Plan (NRP) and introduces a legal framework for the applicability and use of hydrogen potential in Poland.
Key changes include:
- introducing a conceptual grid for the development and operation of the hydrogen market,
- regulating the rationing of hydrogen activities,
- designing the principles of operation of hydrogen networks,
- consideration of cross-sectoral opportunities for the use of hydrogen,
- simplification proposals for those investing in the development of a hydrogen system.
The Act amending the Energy Law and certain other Acts was passed by the Sejm on 21 November 2024, and the Senate made no amendments.
Offshore wind farms
The new legislation is aimed at harnessing the potential of offshore wind energy in the Polish Exclusive Economic Zone and creating legal solutions that will support entities interested in its development in Poland, including companies responsible for supplying components for the construction of offshore wind farms.
The Act includes regulations important for the development of offshore wind farms in terms of grid connection, the local supply chain and the support system, under which generators will be able to apply for the so-called right to cover a negative balance. At the same time, it introduces a number of procedural improvements in the construction and operation of wind farms and administrative proceedings to speed up investment.
The new developments will also influence the development of the local supply chain and the domestic offshore wind industry.
The Act of 27 November 2024 amending the Act on the promotion of electricity generation in offshore wind farms was signed by the President of the Republic of Poland on 9 December 2024.
Freezing the maximum price for electricity
Energy prices for households will remain unchanged in 2025. The regulations extend the maximum price for electricity for household consumers at 500 PLN/MWh (instead of approximately 623 PLN/MWh under the current tariffs). The price freeze will apply for a further nine months, i.e. until the end of September 2025.
The collection of a power charge from consumers taking electricity for their own consumption at consumption points with a voltage of no more than 1 kV is also suspended. Such customers are mainly households.
The Act of 27 November 2024 amending the Act on emergency measures to reduce electricity prices and support certain consumers in 2023 and 2024 and certain other acts was signed by the President of the Republic of Poland on 9 December 2024.
Amendment to the RES Act
Among the most important changes envisaged by the amendment are:
- Acceleration of the investment process in the RES area by shortening the timeframe for issuing permits and decisions
The aim is to shorten procedures for the following RES installations:
- mounted on buildings, using solar radiation to generate energy;
- electricity storage facilities, heat pumps, equipment and installations necessary for the grid connection of a RES installation, as well as the renovation, reconstruction, superstructure or extension of a RES installation located on the same site.
The changes include issuing procedures:
- building permit decision for construction works;
- conditions for connection to the electricity and district heating networks;
- an electricity generation licence or a heat generation licence;
- environmental decision;
- entry in the register of small installation producers.
The total duration of administrative procedures is expected to decrease from 356-416 days to 149 days.
- Development of prosumer energy by increasing the cost-effectiveness of net-billing
The change is to maintain the possibility for prosumers to net-bill after 1 July 2024 based on the monthly market price of electricity (RCEm) – instead of the hourly price of electricity (RCE). If a prosumer chooses to remain with the current billing method (RCEm), the amount of their overpayment will be up to 20% of the value of the electricity injected into the grid in the calendar month.
Prosumers will also be able to change their billing to the market-based hourly electricity price (RCE) by submitting a declaration to the seller. An incentive to switch will be the possibility to increase the value of the refund of unused funds for the introduction of electricity into the grid in the following 12 months (so-called overpayment) to 30%.
- Tidying-up changes due to the entry into force of the Centralised System for Information of the Energy Market (CSIRE)
In view of the delay of the start of CSIRE to 1 July 2025, it is also necessary to postpone the entry into force of the virtual prosumer institution to this date, as its application is dependent on the functioning of CSIRE.
- Ensuring compatibility of national law with EU law
An important objective of the amendment is to ensure that national law is in line with EU law with regard to state aid granted in support schemes for RES, cogeneration and for energy-intensive consumers.
Polish regulations are being brought into line with the CEEAG guidelines through:
- updating the list of sectors eligible for reductions for energy-intensive consumers;
- the introduction of two levels of relief: for companies in sectors exposed to a particular risk of carbon leakage at 85% of the obligation and in sectors exposed to a risk of carbon leakage at 75%;
- maintaining the criterion for qualification of a company as an industrial customer at min. 3% energy intensity;
- the introduction of a levy to be paid by energy-intensive consumers entitled to rebates.
At the same time, the compliance of the Polish regulations with the GBER regulation is ensured, in particular by introducing changes to the FiT (feed-in-tariff) / FiP (feed-in premium) support schemes to adapt the support threshold to RES installations with a maximum installed electrical capacity of up to 400 kW.
The Act of 27 November 2024 amending the Renewable Energy Sources Act and certain other acts was signed by the President of the Republic of Poland on 6 December 2024.
