Spotlight on Poland

In Poland the self-consumption and other on-site models were traditionally used mostly by very large industrial consumers, who were seeking supplementary sources of power (and heat), but also reduction of costs. However, due to increasing electricity prices (both due to wholesale price increase and introduction of new levies and surcharges, such as the capacity market surcharge of EUR 17 per MWh) and growing interest in “green” footprint, this has changed. A significant increase of interest in the on-site generation models have been observed in recent years within the wide range of consumers.

The key incentive behind the on-site generation is the ability to avoid or reduce network charges, electricity levies and surcharges, as well as obligations to redeem energy certificates. For example, typical self-consumption model is not subject to any of those charges and obligations. Other on-site models involving sale of power also allow to avoid network charges, but certain levies and energy certificates obligations may still apply. There is a strong tendency on the market to pursue alternative solutions such as the energy as a service model, where the generation asset is leased to the consumer, who can benefit from on-site electricity production without network charges, levies and other regulatory burdens and also without a large upfront investment.

The on-site generation in Poland seems to be thriving without a dedicated regulatory incentives or subsidies. It is driven by the consumers’ focus to reduce and stabilise the electricity costs. However, the Polish government also sees the benefits flowing from the development of on-site generation and distributed generation as a whole. The Polish Energy Policy recognises industrial electricity and local generation as key factors in pursuing the emission-free energy system.