Key takeaways

• The aim of the draft regulations is to remove barriers that limit the integration of renewable energy sources into power grids.
• In order to mobilize applicants to proceed with projects faster and thus free the blocked connection capacity, the institution of "milestones" has been introduced — its non-implementation threatens the expiration of grid connection agreements.
• The period of validity of the connection conditions will be shortened from two years to one year, and there will also be a possibility for the operator to re-verify the technical and economic conditions at the stage of concluding the connection agreement.
• A new institution will appear in the form of "tenders" for the connection capacity in specific — preferred by operators — areas of the network.
• The draft assumes greater transparency on the part of network operators — among others the introduction of publicly available information platforms on network connections in a given area.
• Some of the changes are also to apply to grid connection agreements which were concluded before the proposed amendment enters into force.

Background

In 2024 alone, network operators issued a total of almost 8,000 refusals to issue conditions for connecting RES installations to the grid, which they justified by the lack of technical conditions for connection to the grid or economic reasons. The availability of connections allowing for the growth of new generation capacities is of key importance for Poland's achievement of ambitious climate goals and, in a broader context, for ensuring the country's energy security. Obtaining the grid connection conditions and then concluding connection agreements is the "bottleneck" of the investment process in the field of RES, which in turn has an immense impact on decisions made by potential investors.

Assumptions of the amendment

As far as the connection process itself is concerned, in order to "mobilize" applicants and thus free the blocked connection capacity it is planned, the introduction of the so-called milestones (investors will have a certain amount of time to obtain valid building permits under the threat of expiry of the connection agreements). The validity period of the grid connection conditions is also to be shortened from two years to one year. A solution that may raise concerns among stakeholders will be the introduction of the possibility of re-verifying the existence of technical and economic conditions of the connection, already at the stage of concluding the grid connection agreement, which, in the absence of such conditions, may result in a refusal to conclude the connection agreement despite the validity of grid connection conditions. Apart from that, some simplifications will be introduced — for example, the submission of applications for grid connection will be possible in a fully electronic process (online). Moreover, the procedure itself will be less burdensome (for example, instead of attaching an extract from the local plan — Local Spatial Development Plan (MPZP) — or the zoning decision, it is sufficient to submit an appropriate statement).

It is also proposed that Transmission System Operators (TSOs) and Distribution System Operators (DSOs) in their development plans indicate, among others, areas of priority connection of specific RES installations, where connections to the grid will take place in the form of tenders between applicants (the competition criteria will include the amount of the offered connection fee, the deadline for the implementation of the investment and the level of "local content").

With a view to greater transparency of the grid connection process, one of the proposed solutions is to impose on the network operators the obligation to create publicly available information platforms containing, among others, information on available connection capacities, submitted applications for grid connection conditions and their current status, or criteria used to calculate the network capacity available for new connections.

The proposed increase in connection fees should also be taken into consideration (in particular, an increase in the amount of the advance payment for the connection fee, from PLN 30 to PLN 60 for each kW and the introduction of an obligation for applicants to pay security in the amount of PLN 30 for each kW in the case of installations up to 100 MW or PLN 60/kW in the case of a capacity of more than 100 MW).

In addition, it is assumed that the use of cable-pooling will be extended to include non-RES installations and the introduction of two new institutions to be used when connection is not possible under normal conditions — a flexible grid connection agreement (used until the network is appropriately expanded) and a configurable one (when connection to the grid without restrictions will not be possible even despite the planned network expansion).

Conclusions

The adoption of the regulations in the currently proposed form may be a significant change in conditions for stakeholders considering investment in RES in Poland. The discussed facilitation and improvement in relation to the regulatory restrictions on the RES connection process may potentially accelerate investment projects already underway on the one hand, and on the other hand encourage a decision to implement new projects in the field of renewable generation sources. However, not all the market players are equally enthusiastic about the proposed changes, e.g., regarding shortening the validity or potential re-verification of already issued connection conditions.

Bearing in mind the scope of the changes, we recommend careful monitoring of the legislative process. The proposed changes, if introduced, will affect not only entities planning investments in generation installations, but also entities that are already at a later stage of investment implementation. According to the transitional provisions, some of the changes are also to apply to grid connection agreements which were concluded before the proposed amendment enters into force.

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