Polish draft law proposing significant changes to energy-sector regulations in public consultation

On 24 March 2025, Poland’s government has submitted a draft amendment to the Energy Law and other related acts for public consultation, which call for significant changes to the regulatory framework of the energy sector. While the primary focus of the amendment concerns grid connection procedures, the proposed provisions extend to a broad range of issues aimed at optimising market operations and improving several energy-related mechanisms within the Polish electricity regime.

Changes in grid connection procedures for generating units

The proposed amendment seeks to rationalise connection-related fees in response to the dynamic transformations recently observed in the energy market. One of the primary objectives of these changes is to address the issue of "capacity blocking", which occurs when grid connection conditions are granted but not implemented. By tackling this problem, the new regulations aim to accelerate investment processes and ensure that connection conditions reflect the current needs and technical capabilities of the energy system.

Increase in grid connection fees and security deposits

A key aspect of the amendment is the increase in the advance payment required for grid connection fees, doubling the amount from PLN 30 to PLN 60 per kilowatt of requested capacity, while also raising the maximum total advance payment from PLN 3 million to PLN 6 million. Furthermore, the amendment introduces a non-refundable fee for reviewing grid connection applications related to installations with a nominal voltage exceeding 1 kV. This fee will amount to PLN 1 per kilowatt of requested capacity, with a maximum cap of PLN 100,000.

To further enhance the financial responsibility of applicants, the amendment establishes mandatory financial security requirements for entities seeking connection to networks with a nominal voltage above 1 kV. The required security deposit will be PLN 30 per kilowatt for applications covering up to 100 MW of capacity, and PLN 60 per kilowatt for applications exceeding this threshold. This measure formalises existing market practices and provides a legal basis for setting security deposit amounts.

Reduction of grid connection conditions validity period

Another crucial change is the reduction of the validity period for connection conditions from two years to one year. This adjustment is designed to mitigate the risk of speculative grid connection applications and ensure that connection conditions remain up to date with evolving market and grid capabilities.

Implementation of mandatory project milestones

Additionally, the amendment introduces the requirement for connected entities to meet specific project milestones to retain their grid connection agreements. Entities failing to secure necessary permits within 24 months from the grid connection agreement’s signing or failing to secure contracts for key equipment within 36 months will face automatic termination of their grid connection agreements.

Auction system for released capacities

To further optimise the allocation of connection capacities, the amendment establishes auctions for released capacities. In cases where a grid connection agreement is terminated due to failure to meet project milestones, the transmission or distribution system operator will be required to conduct an auction process, allowing other entities to connect to the same grid point under equivalent technical conditions.

Introduction of flexible grid connection agreements

Last, but not least, another interesting mechanism proposed in the amendments is the introduction of a flexible connection agreement. This type of agreement involves either an energy generator or an off-taker. Under this two-party arrangement, a distributor partially fulfils the demand of the interested party, since it issues the connection conditions, but limits the capacity for interconnection due to temporary technical constraints that prevent a full connection as requested by the involved party. The agreement specifies the conditions under which these limitations may be lifted. Once those conditions are met, the party gains access to the full capacity of the interconnection they initially intended to obtain.

Optimisation of the grid connection process

The amendment also introduces measures to enhance the efficiency of the existing grid infrastructure and facilitate the connection of new installations. A key development is the expansion of the "cable pooling" concept, which will allow various types of energy installations (not just renewable energy sources) to share a single grid connection point. By extending the scope of cable pooling, the amendment aims to maximise the utilisation of available grid capacity, improve system reliability, and integrate a greater number of energy storage facilities and RES installations.

Additionally, to streamline administrative procedures, the new regulations eliminate the requirement to conduct grid impact assessments when modifying an existing grid connection agreement by adding a new installation type or increasing installed capacity, provided that the total connection capacity remains unchanged.

Multi-PPA framework

The amendment also introduces provisions that may affect how off-takers secure their energy needs across various sources. Under the new regulations, consumers will be allowed to enter into multiple power purchase agreements (or comprehensive agreements). While the relevant grid codes already allow for this possibility, the amendment creates an even more comprehensive framework. It mandates that consumers intending to enter into multiple power purchase agreements must fulfil the following obligations:

• Operate more than one energy off-take point; or
• Install an additional remote-reading metre at a single off-take point.

Consequently, entities, including those currently engaged in or considering Corporate Power Purchase Agreements, should closely monitor regulatory developments and assess their potential implications.

Conclusion

The proposed amendment to the Energy Law introduces a series of critical reforms aimed at optimising grid connection procedures, enhancing the efficiency of energy infrastructure utilisation, and increasing flexibility in electricity trading agreements. By shortening the validity period for connection conditions, introducing mandatory project milestones and implementing an auction system for released capacities, the new regulations seek to accelerate investment processes and improve the overall functioning of the energy market.

For more details on these amendments and opportunities in Poland’s energy sector, contact your CMS client partner or these CMS experts: