Poland finalizes 5 GWh energy storage subsidy scheme

Following a public consultation launched in July 2024, the Polish Ministry of Climate and Environment has finalized its energy storage subsidy program which aims to support the deployment of more than 5 GWh of energy storage in the country.

The new regulation was published in the Journal of Laws of the Republic of Poland on March 7. It paves the way for the National Fund for Environmental Protection and Water Management to launch the much-awaited subsidy scheme at the end of Q1 or the beginning of Q2 2025.

The programe budget will amount to PLN 4 billion, including grants of up to PLN 3.6 billion and loans of nearly PLN 400 million. The scheme will be financed partly by the European Union’s Modernization Fund and partly by the bloc’s post-Covid Recovery and Resilience Facility, following the European Commission’s positive assessment of Poland’s Recovery and Resilience Plan and its adoption by the EU Council.

The European Commission authorized the subsidy scheme in October 2024 to the tune of €1.2 billion in a bid to support the installation of at least 5.4 GWh of new electricity storage facilities. 

Eligible projects include the construction of storage facilities with a minimum power rating of 2 MW and a capacity of at least 4 MWh, connected to the grid at medium or high voltage levels.

The scheme will support newly built projects. However, projects with an awarded capacity market contract which started construction after March 2023 could also be eligible. However, due to the rules on the accumulation of public aid, the potential acquisition of investment support from the program will result in a reduction of the remuneration for fulfilling the capacity obligation.

Funding is available in the form of non-repayable grants and repayable loans. The total amount of grant and loans combined shall not exceed 45% of the investment cost of supported projects but that figure may be increased to 55% for medium-sized companies and 65% for small companies. Meanwhile, funding in the form of a loan will be granted for up to 100% of eligible costs.

All contracts must be signed by December 31, 2025, and the project must be operational before December 31, 2028.  In the event of failure to meet the deadline, the aid will be reduced by 5% for each month of delay, if the delay is from three to six months, and then by 10% for each additional month of delay.