Poland’s Energy Law Overhaul: Key Deregulation Measures to Boost Renewable Investments

Key elements of the reform include the expansion of the cable pooling mechanism, a higher licensing threshold for RES installations, reduced distance requirements for wind turbines, and the introduction of flexible grid connection agreements.

On 27th May 2025, the Council of Ministers adopted a draft law amending certain laws to deregulate the energy sector (UDER29). The amendment seeks to make significant changes to the obligation to obtain a license to generate electricity from renewable energy sources by raising the threshold for the installed capacity of RES installations requiring a license from 1 MW to 5 MW. This change aligns Poland with EU trends in reducing regulatory burdens for small-scale RES developers.

As a result of the amendment, the generation of electricity from renewable energy sources in an RES installation with an installed electrical capacity of more than 1 MW and no more than 5 MW will only require a streamlined registration in the register of generators performing registered business activity in the field of renewable energy source installations (the former register of small-scale energy generators). Entry in this register will be made on the basis of an application containing statements by the generator, within 14 days of its receipt. The change will be a significant simplification compared to the elaborate licensing procedure, which involves extensive documentary evidence.
 

Cable pooling with energy storage

The amendment to UDER29 also introduces significant changes to the connection of renewable energy sources to the electricity grid. One of the key elements of the amendment is the extension of the cable pooling formula to include the possibility of using energy storage facilities. The amendment is a significant advancement for investors planning to develop RES projects in Poland.

Cable pooling is a mechanism that allows several RES installations, such as photovoltaic and wind power, to share a single connection to the grid. Currently, shared grid connections is limited to generation sources only. However, the amendment introduces the possibility of including independent energy storage facilities in this arrangement as well. Such a solution significantly increases flexibility and efficiency in the use of grid infrastructure. For instance, a solar and wind farm sharing a grid connection with a battery storage unit can now optimize output and reduce curtailment risk

• Energy storage facilities will be able to accumulate surplus energy from various sources sharing the connection,
• Investors will gain the ability to balance energy production and consumption locally, reducing the risk of refusal to connect to the grid,
• The extension of the cable pooling formula also aims to relieve the strain on the power grid and improve the stability of the power system.

 

Wind turbine amendment bill

On 18th March 2025 the Council of Ministers adopted a draft law amending the Law on Investment in Wind Power Plants and Certain Other Laws (UD89). A key element of the amendment is the reduction of the minimum distance of wind turbines from buildings.

Under current regulations, wind turbines must be located at a distance of 10 times their height (10H) from residential buildings, unless the local plan specifies a different distance, expressed in metres, but not less than 700 metres..

The bill abolishes the 10H rule and provides for 500 m as the minimum distance of wind turbines from buildings.

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The minimum distance of a turbine from the border of a national park is to be 1,500 m, while from certain Natura 2000 areas is to be 500 m. Buffer zones around Natura 2000 areas designated for bat and bird protection will be subject to stricter limitations.

As a result of the amendment, locating wind turbines near high-voltage transmission lines is to become more flexible. The current regulations provide for a minimum distance of 3H. The draft stipulates that at the stage of creating a local spatial development plan ("LDP") for a specific wind project, the investor can agree with the transmission operator on a shorter distance.

The draft also normalizes the distance of construction of new wind turbines from national roads. After the legislation is passed, this distance is to be 1H, which is equal to the maximum height of the rotor blade above the surface.  As a result, the provincial governor, when issuing a decision on a permit for the realization of a road investment ("ZRID"), will, with compensation, order the demolition of wind turbines lying closer than 1H to the proposed national road and prohibit the issuance of construction permits in this area.

The draft also regulates the procedure for upgrading wind turbines. In the case of modernization of turbines located on the basis of a decision on land development conditions (WZ) or local spatial development plan (MPZP), which provides for smaller dimensions of the turbine than after modernization - it will be necessary to go through the full planning path, ending with the adoption of a new local plan. However, in the event that the MPZP provides for the possibility of modernization - there will be no need to amend it. On the basis of such a decision it will be possible to issue an environmental decision and a building permit, if the investment meets the condition of distance of 500 m from residential buildings and 1H from national roads.

Flexible connection agreements

Currently, the Council of Ministers is in the process of proceeding with the draft law on amendments to the laws - the Energy Law and certain other laws (UC84). One of the significant changes proposed by the amendment is flexible connection agreements. Flexible agreements will allow entities to connect to the grid in areas where there are currently restrictions on connectivity. The operator will become entitled to impose predefined operational constraints on the consumption or injection of electricity into the grid by a given installation without without incurring liability for any resulting limitations in energy delivery. However, the draft stipulates that such agreements should, as a rule, be treated as a temporary solution until the electricity grid is adequately expanded. The connection conditions and flexible connection agreement are to include provisions on the type of restrictions in the direction of electricity consumption or output, respectively, and the conditions that must be met for their removal, including the required scope of grid expansion.

The draft indicates that detailed guidelines for flexible connection agreements will be published by the President of the Energy Regulatory Authority.

The changes under discussion are aimed at simplifying administrative procedures and increasing efficiency and flexibility in the energy sector. Deregulation, which includes raising the concession threshold for RES installations, expanding the cable pooling mechanism, reducing the minimum distance of wind turbines from buildings, and introducing flexible connection agreements, is an important step toward accelerating the development of renewable energy sources in Poland.

Summary

Poland’s recent deregulation package marks a pivotal shift in its energy policy, offering a more investor-friendly environment for renewable energy development. By streamlining licensing, enhancing grid access, and enabling greater flexibility, the country positions itself as a competitive destination for green energy investments in Europe.​