Draft amendment to the RES Act has been published

Today the draft amendment to the Renewable Energy Sources Act (“Draft”) has been made publicly available.

The Draft mainly aims to adjust the current regulations regarding microinstallations and the support scheme for prosumers to the provisions of the European Commission guidelines on state aid for environmental protection and energy 2014-2020 (2014/C 200/01) and to EC regulation No. 651/2014 dated 17 June 2014. It also introduces some changes of a technical and clarifying character.

However, we would like to underline that, from the point of view of the larger renewable energy source (RES) installations, one of the most significant changes is proposed in an interim provision (Article 3). Its wording is very ambiguous – but it seems that according to the provision, the RES energy producers who produced energy after 1 January 2016 for the first time, will have to sell the entire RES energy (until 31 December 2016) on the commodities exchange or on the regulated market (organised by the entity conducting the regulated market in Poland). If such RES installation does not sell the entire generated electricity through the above commodities exchange or on the market, it will be disqualified from participating in an auction - the President of URE will issue a decision prohibiting such RES installation from participating in the auction. Please note that the justification note accompanying the Draft is very short and does not provide clear explanation to such change (which raises additional doubts).

The Draft also states that the provisions of chapter 4 of the RES Act (including the provisions on state aid) will be applicable mutatis mutandis to the [new] RES installations commissioned after 1 January 2016, which may also have an impact on RES energy producers.

The Draft clarifies that for a new RES installation, the 15-year period will be counted from the day following the date on which the auction is won, which is positive clarification. Additionally, the Draft increases the RES fee to PLN 4,01/MW net.

Please note that we are still in the process on analysing the published Draft (if you are interested, please find attached the Draft amendment to the RES Act as published today – only the Polish version is available).

Should you have any questions or wish to obtain more information, please contact us or any of your other contacts at Linklaters.