New regulations for energy storage

Draft amendment aims to introduce energy storage solutions in the Polish electric power industry.

On 15 April 2021, the Polish Parliament in the Lower Chamber (Sejm) adopted a draft amendment to the Energy Law Act (“Draft”). The new provisions introduce comprehensive solutions for the development of energy storage facilities in Poland and are aimed at eliminating certain barriers to the expansion of this technology in Poland. Currently, the total installed capacity of Polish energy storage facilities is estimated at around 50 MW.

The Draft introduces a uniform definition of energy storage and energy storage facilities (the latter defined as an installation that enables electricity to be stored and released to the grid).

Operating energy storage facilities with a total installed capacity exceeding 10 MW will require a separate concession issued by the President of the Energy Regulatory Office. Operators of energy storage facilities with a total installed capacity greater than 50 kW but less than 10 MW will not be obliged to hold a concession. Instead, they will be required to apply to be entered in a register of energy storage facilities.

The draft also regulates matters related to connecting energy storage facilities to the grid. The grid connection fee will be set based on half of the actual expenses incurred for setting up the connection. The deadlines for issuing grid connection conditions will be 30 days for facilities connected to the grid with a rated voltage no greater than 1 kV and 120 days for facilities connected to the grid with a rated voltage greater than 1 kV.

In addition, grid fees and distribution fees will no longer be charged twice for energy stored and then withdrawn from storage.

It is expected that the Draft will guarantee more certainty and facilitate new investments in this previously underregulated sector.

The Draft will now be processed by the Upper Chamber of the Parliament (Senate) and will likely be enacted later in 2021.

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