Spis treści
Poland is beginning to use funding from the Modernisation Fund. This is now the main source of funding for investments in the energy transition. The applications already submitted amount to almost PLN 4 billion in the form of grants and loans and new programs regarding cogeneration, biogas and renewable energy sources will soon be launched.
Poland can even expect more than PLN 50 billion from the Modernisation Fund. The money comes from the sale of 2% of the EU’s pool of CO2 emission allowances and is allocated to 10 Member States. Poland is allocated more than 43% of the pool.
The National Fund for Environmental Protection and Water Management, which is the national operator of the Modernisation Fund, has already been authorised to implement 15 programs with a total of approx. PLN 18.7 billion. So far, only half of the programs have been launched, with only a few attracting much interest. It can already be seen that some programs have too ambitious objectives and their implementation will not be easy.
Waste incineration plants on the crest of a wave
The largest number of applications accepted so far is for 12 waste incineration plants, powered by “alternative fuels from municipal waste”. Companies can obtain up to PLN 100 million in grants and up to PLN 400 million in loans for the construction, expansion or modernisation of waste incineration plants with energy production in high-efficiency cogeneration. The grant covers up to 50% of the investment costs.
Companies submitted separate applications for grants and loans – there were 24 applications in total. The value of the support applied for in the form of a grant is PLN 948 million, and in the form of a loan is PLN 2.3 billion. The total amount of the investment is approx. PLN 4.3 billion. The submitted applications fully exhaust the budget allocated for the program.
The National Fund for Environmental Protection and Water Management has already concluded its first contract with Siedlce Energy Company for the construction of a municipal waste thermal treatment plant with energy recovery with a capacity of 6 MWt and 1 MWe. The entire cost of the investment is to be PLN 160 million, including around PLN 65 million in grants from the Modernisation Fund
DSOs will get grants for meters and EV charging stations…
Three programs, each with a budget of one billion zlotys, are addressed to distribution network operators. Two programs regarding EV charging stations and smart meters have already been launched, while the third one – for energy storage – has no call date.
In the case of extension of the electricity network for the needs of EV charging stations, five applications for almost PLN 100 million were received, which exhausted the entire first allocation and now the National Fund for Environmental Protection and Water Management is preparing for the next call. DSOs receive up to 60% of grants for the construction, modernisation of power lines and substations, network automation, development of metering systems, communication systems and IT systems, including servers and arrays.
The call for applications for the smart meter support program closed in September. Six applications for funding totalling approx. PLN 376 million were received, so significantly more than PLN 200 million allocated in the first call. Using the Modernisation Fund, DSOs can cover half of the cost of purchasing remote reading meters and all of the costs connected with its installation and the infrastructure necessary to operate the meters. It is assumed to be enough for at least 3.8 million new meters.
…but they will wait for energy storage facilities
In contrast, the program to build energy storage facilities for DSOs has come to a standstill. In general, DSOs cannot own energy storage facilities unless they are integrated into the grid. The program stipulates that the beneficiary will have to obtain confirmation from the President of the Energy Regulatory Office that it is a storage facility integrated into the grid and will not be used for other purposes.
As explained by the National Fund for Environmental Protection and Water Management, the energy law must first be amended. The idea is to adapt Polish legislation to Directive 2019/944 of the European Parliament and of the Council (EU) on common rules for the internal market for electricity. Article 36 of this Directive mentions three conditions which have to be jointly met so that DSOs could become owners of energy storage facilities. Meanwhile, the draft amendment to the Energy Law (UC 74), which introduces provisions regulating the ownership of energy storage facilities by DSOs and transmission system operators, has not been adopted by the government yet.
A difficult road to cogeneration and energy savings
Large hopes were related to the Renovation with Guaranteed Savings EPC (Energy Performance Contract) Plus program, which promotes energy savings in construction under the ESCO formula. In the call addressed to housing cooperatives and associations with a budget of PLN 10 million, 9 draft applications were accepted for a total amount of funding of nearly PLN 6 million. Seven of these applications were assessed positively. As can be heard unofficially, this is a demanding program. To obtain a grant of 30%, it is necessary to carry out deep thermo-modernisation and achieve at least 60% energy savings. The minimum required level of energy savings is 30%, but then the grant is only 10%.
The first calls for applications for cogeneration are also underway, but the results have not been impressive so far: two applications in the cogeneration program for industry and none for district heating, but the latter call was announced less than two months ago. This is a program with a budget of PLN 3 billion aimed at installations of more than 50 MW. “For such large investments, the first applications are not expected until the beginning of next year at the earliest. Completing the documentation is a time-consuming process” – a spokeswoman for the National Fund for Environmental Protection and Water Management Ewelina Steczkowska informed us.
RES and even more cogeneration
Later this year, a call is to be launched in the district cogeneration program with a budget of one billion zloty. This aid is addressed to systems with a capacity of less than 50 MW. It is a new program approved by the European Investment Bank this autumn. Poland has received approval for four new programs amounting to PLN 5.5 billion, in addition to district cogeneration, these are: development of cogeneration based on municipal biogas, energy for rural areas, RES for heating.
