Commission extends the Polish RES auction scheme for 2022–2027 (SA.64713)

On 30 November 2021 the European Commission approved the extension of the Polish state aid programme for electricity from renewable sources for 2022–2027. The programme, in which auctions for biogas and biomass also take part, is notified under number SA.64713.

What was approved

The original scheme was approved by the Commission under number SA.43697. Its budget was about PLN 40 billion (about EUR 9.4 billion). Its expiry date, 30 June 2021, was first extended by half a year, to the end of 2021 (decision SA.59015 of December 2020). The new decision SA.64713 extends the system to the 2022–2027 period.

The aid takes the form of a variable premium added to the market price. In the Commission's announcement it was described as the difference between the price offered in the auction and the wholesale price of energy. The generator therefore sells energy on the market, and the state makes up the difference to the auction price. The announcement does not give the budget of the extended programme or name any technologies: it describes the programme generally as support for the production of energy from renewable sources.

Conditions

The Commission assessed the programme on the basis of the 2014 guidelines on state aid for environmental protection and energy. Poland committed to carrying out an ex post evaluation of the extended programme. This means that after it ends, or within a specified time, the authorities are to present an evaluation of its effectiveness and costs.

The details of the decision, including the technological scope, are to be available in the state aid register under number SA.64713.

Biogas and biomass in Polish auctions

In Poland RES auctions are divided into technology baskets, and energy from biogas and biomass has been the subject of separate auctions (see the article on the 2019 auction with no result). For agricultural biogas plants it is important that the framework notified in Brussels extends the possibility of organising auctions using a variable premium until 2027.

What this means for an investor

• The Polish support programme for energy from renewables is notified until 2027, so any auctions in subsequent years may be based on this decision.
• A variable premium does not guarantee a fixed price, only its adjustment to the auction price in relation to the wholesale energy price.
• The ex post evaluation may affect the shape of future programmes after 2027.
• It is worth following the publication of the decision in the Commission's register to check the technological scope.