21.07.2025

A Deregulatory Boost for Renewables – New Simplifications in Response to Market Needs

Parliamentary work has begun on an amendment to energy regulations aimed at removing administrative barriers and streamlining the development of renewables in Poland. The amendment covers changes to the Energy Law, the Construction Law, and the Renewable Energy Sources Act. The proposed changes are part of a broader plan to deregulate the energy sector, with the goal of simplifying procedures and accelerating investment in green energy in the context of growing demand for new generation capacity and limited grid-connection availability.

Photovoltaics up to 500 kW – Notification, Not Permit

One of the most anticipated changes is the removal of the requirement to obtain a building permit for photovoltaic installations with an installed capacity above 150 kW and not exceeding 500 kW, provided they are used for the owner’s own needs. This change applies to both rooftop and ground-mounted installations, as long as they are not located in specially protected natural areas such as national parks, nature reserves, Natura 2000 sites, or ecological sites.

This facilitation, included in the amendment to the Construction Law (Art. 29(1)(35) and Art. 29(3)(3)(g)), aims to speed up renewable energy investments, particularly for SMEs increasingly seeking energy self-sufficiency. The new regulations retain the obligation to have the technical documentation approved by a fire safety expert and to notify the State Fire Service upon completion of construction and before commencing operation.

The simplified procedure will be available only for installations intended to cover the owner’s own energy needs, excluding the possibility of feeding excess energy into the power grid.

If a photovoltaic installation with an installed capacity above 150 kW and up to 500 kW is to be connected to the grid, the investor will be required to submit a declaration confirming that the electricity generated will not be fed into the grid, as well as to provide simplified connection conditions.

Renewables up to 5 MW Without a License – New Register of Regulated Activity

The current licensing threshold for renewable installations is 1 MW, which has effectively been a barrier to the development of medium-sized installations. The planned changes to the Renewable Energy Sources Act (Art. 7(1)(1)) propose raising this threshold to 5 MW. Energy generation in such installations will no longer require a license, only an entry in a new register of regulated activity maintained by the President of the Energy Regulatory Office (URE).

The new rules are intended to simplify registration procedures, reduce administrative and financial burdens for investors, while maintaining a basic level of market oversight. This register will include both small installations (up to 1 MW) and larger ones up to 5 MW. Importantly, producers listed in the register will not be subject to the reporting obligations that apply to licensed operators.

The law also introduces transitional provisions for producers already entered in the small installations register, who will be automatically transferred to the new register without needing to take additional steps.

Cable Pooling – More Efficient Grid Use

Significant legislative changes also concern the possibility of so-called cable pooling, i.e., sharing a single grid connection point among different installations. Until now, this solution could only be used for renewable energy installations. The draft proposes extending this possibility to energy storage facilities and other generation units as well.

The amendment to Art. 7(1f) of the Energy Law enables the connection of several installations or storage facilities belonging to one or more entities to a single electricity grid connection. The aim is to increase flexibility in utilizing existing connection capacities and improve balancing of the local power system.

In practice, this means that, for example, a solar farm and an energy storage facility can share a single grid connection point. Moreover, the draft provides for simplifications in cases where an additional unit is added to an existing connection – the new technical requirements will apply only to the newly connected facility, lowering investment costs. This solution can significantly improve the efficiency of using available grid capacity and accelerate the country’s energy transition, especially in regions with limited connection availability.

Other Changes

Among other changes in the bill are the introduction of a simplified obligation to provide a summary on electricity bills for individual consumers, as well as changing the default form of communication between energy companies and consumers to electronic form. Paper correspondence will remain available for those who are digitally excluded.

Expected Entry into Force

The draft Act amending certain acts to implement deregulation in the energy sector is the result of the Government Deregulation Team established by the Council of Ministers in March this year (document no. 1310). On 2 June 2025, the draft was referred for first reading to the Deregulation Committee and the Committee on Energy, Climate, and State Assets. The expected effective date of the Act is 1 January 2026, with certain provisions entering into force on the date of promulgation or after a 14-day vacatio legis.

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