S.11. State Aid


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EC approves €5 billion Polish energy scheme

Monday, April 15, 2019

The scheme will support combined heat and power installations connected to Polish district heating networks.

The EC approved a €5 billion Polish support scheme for the co-generation of electricity with surcharge reductions for large energy users financed through a surcharge levied on final electricity consumers based on their power usage. The scheme boasts an annual budget of around €500 million to support combined heat and power (CHP) installations connected to the country’s district heating networks. Funding will be available until 2028.

The support will be available to new, existing and refurbished CHP plants and will be open to generators in other EU Member States.

The Polish government is also seeking to lower the capacity mechanism surcharge to reduce the financial burden on certain energy intensive users. In response, the EC launched an in-depth investigation into the capacity mechanism surcharges for energy intensive users, to assess if the proposed reductions comply with EU state aid rules. The investigation will also consider whether surcharge reductions are necessary to secure the financing of the nation’s capacity mechanism.