The recent amendment to Poland’s Energy Law marks a pivotal moment for the country’s renewable energy sector. This reform aims to create a more attractive environment for investors and modernise the electricity infrastructure. However, according to Michał Sobczyk, Senior Technology Developer at European Energy, the key to success lies in cutting through bureaucracy and providing regulatory clarity.

“This reform is a decisive moment for modernising Poland’s energy infrastructure, but its success will depend on removing unnecessary bureaucracy that has held us back for too long,” Sobczyk states. He highlights that aspects such as cable pooling, direct lines, and energy storage regulation are crucial to ensuring a smooth energy transition.

Bureaucracy and Regulation: A Barrier to Transition?

One of the biggest challenges in Poland’s renewable energy implementation has been the lack of grid flexibility and excessive bureaucracy in connection processes. While the reform aims to streamline these procedures, regulatory “grey areas” still need to be addressed.

“We still face significant uncertainties, particularly regarding cable pooling and the regulatory framework for energy storage. Removing these bottlenecks is essential to unlocking the full potential of renewables,” Sobczyk warns.

Furthermore, aligning national regulations with EU directives such as RED III and the Energy Market Design (EMD) could facilitate the adoption of innovative solutions like multi-asset storage and energy aggregation.

The Role of Energy Storage in Grid Stability

As Poland increasingly integrates intermittent sources like solar and wind, a robust energy storage infrastructure is crucial. The reform introduces new tariff mechanisms to incentivise investment in batteries and storage technologies, a measure Sobczyk considers essential.

“Storage is no longer just an add-on; it is a key element for managing grid frequency, balancing supply and demand, and ensuring the resilience of our power system,” he emphasises.

However, for storage to play its role effectively, clear and stable regulatory frameworks are needed. The lack of precise guidelines has created uncertainty among investors, slowing the development of strategic projects.

Strengthening the Energy Regulator: An Urgent Priority

Another key aspect of the reform is enhancing the powers of the Energy Regulatory Office (URE), which will now have greater authority to oversee the market and penalise manipulation practices. However, Sobczyk warns that the effectiveness of these measures will depend on an increased budget allocation.

“URE has been given increasing responsibilities, but without a budget increase. It is vital that it receives the necessary resources to manage the market effectively and ensure its stability,” he states.

This enhancement is crucial for improving market transparency and competitiveness, fostering confidence among investors looking to develop renewable generation and storage projects.

700 Billion Zloty for the Energy Transition: Is the Investment Well Managed?

The Polish government has allocated 700 billion zloty to accelerate the energy transition. However, the fragmentation of responsibilities across multiple ministries and agencies has hindered the effective execution of these funds.

“The problem is not a lack of funding but its management. Currently, energy decisions are split among at least four ministries and various agencies, causing inefficiencies and delays,” Sobczyk explains.

For him, the solution lies in centralising decision-making within a single Ministry of Energy, allowing for long-term strategic planning and more efficient resource allocation.

“We need a coordinated approach to ensure every zloty is used as effectively as possible,” he stresses.

A Stable Framework to Attract Investment and Accelerate Transition

While Poland’s Energy Law reform is a step in the right direction, its success will depend on removing bureaucratic barriers, clarifying storage regulations, and improving public fund management. Additionally, strengthening URE and aligning with EU standards will be crucial in establishing a competitive and investor-friendly energy market.

“This reform has the potential to be a game-changer, but only if it provides a stable, forward-looking framework. The sooner Poland creates the right conditions for investment, the stronger its position will be in the future energy market,” Sobczyk concludes.

With these measures in place, Poland could not only enhance its energy security and reduce dependence on fossil fuels but also position itself as a leader in the clean energy transition in Europe.