Polish Government, the Sejm, has adopted new legislation for the renewable energy sector by an overwhelming majority. The new law primarily concerns offshore wind energy but also introduces significant provisions for tenant prosumers and energy cooperatives.
The Sejm approved an amendment to the Act on Promoting Electricity Generation in Offshore Wind Farms, drafted by the Ministry of Climate and Environment. Out of 439 MPs present, 418 voted in favour.
The amendment focuses on clarifying the rules for offshore wind farms to be developed in the second stage of offshore expansion in the Polish section of the Baltic Sea. Projects from the first phase (totalling 5.9 GW) are already underway thanks to the Energy Regulatory Office (URE) granting so-called Contracts for Difference (CfDs) through individual decisions. This mechanism guarantees investors a fixed income from energy production for 20 years, indexed annually to inflation. Under the CfD system, if market electricity prices fall below the guaranteed level, the investor receives a top-up payment. Conversely, if market prices rise above the guaranteed price, the investor must return the surplus.
Focus on the Second Offshore Phase
The new law centres on the second phase of offshore development, during which investors seeking to build wind farms will compete for CfDs through auctions. Two auctions are planned — the first to take place later this year and the second in two years’ time. The new rules also allow for an additional “catch-up” auction if the first one fails to proceed (for example, if fewer than three valid bids are submitted).
Other improvements for the offshore sector include the possibility of using areas designated for first-phase projects to take part in new auctions, provided unused capacity remains. The law also allows investors to submit two separate bids for two offshore farms located within the same designated area, provided they each have an independent power export connection.
The new provisions adapt the CfD settlement mechanism to allow negative balance payments (arising under CfDs) to be made wholly or partly in euros. They also regulate compensation for negative balances in cases where offshore farms are redispatched on market terms. The amendment ensures that when the transmission system operator cannot guarantee full grid access, producers will still be entitled to compensation from the Settlement Administrator for redispatching.
The amendment to the Act on Promoting Electricity Generation in Offshore Wind Farms, passed by the Sejm, will now be considered by the Senate.
Not Just Offshore
The adopted legislation also includes measures to facilitate onshore renewable energy projects. It introduces rules for identifying areas with the highest potential for renewable installations, where investors can benefit from simplified procedures for project preparation, in line with the EU’s RED III Directive. The law will enable the preparation of maps identifying areas necessary for Poland’s contribution to the EU’s 2030 renewable energy targets and establishes a legal framework for defining Accelerated Renewable Energy Development Areas (OPRO).
Energy Cooperatives and Clusters
The amendment to the Offshore Wind Energy Act opens the door to creating energy cooperatives in urban areas — previously only possible in rural or mixed rural-urban municipalities.
The act also regulates energy purchases by local government units within energy clusters. The new rules remove the obligation to select a single winning contractor, allowing the purchase to be carried out by cluster members who meet the conditions set by the member planning to buy electricity, heat, or fuels within the cluster.
Tenant Prosumers
The offshore wind amendment also introduces mechanisms enabling tenant prosumers to prevent electricity export to the grid during periods of negative energy prices. Moreover, the new law removes the restriction that installations must be located directly on a building. This means tenant prosumers will be able to generate energy from installations placed on, for example, garage roofs or carports.
Electricity produced by tenant prosumers will also be allowed to power additional infrastructure such as estate lighting. Funds from their prosumer deposit accounts can now be used to finance projects improving energy efficiency.
Penalties and Biomass Provisions
The new law allows for penalties imposed on renewable energy producers for breaches of statutory obligations to be proportionate to the severity of the infringement. This will enable the Energy Regulatory Office and the National Agricultural Support Centre to tailor fines accordingly.
The act also includes provisions for biomass energy — specifically installations still operating under the green certificates scheme. It clarifies that the coefficient of 0.5 for certificates of origin in multi-fuel combustion installations (excluding dedicated multi-fuel installations) will remain in force until the end of 2035.
