An Act to support Polish renewable energy production has been signed by President Bronisław Komorowski following significant debate in parliament.

Due to EU pressure, Poland has set a target of reaching a 15 percent share of renewable energy by 2020, which according to forecasts will require some form of subsidy.

The Act will force electricity distribution companies to buy energy produced by renewable micro-installations operating within their area, at 100 percent of market price. This is designed to guarantee a buyer for renewable energy generated by small scale producers with a capacity of up to 40 kW.

The Act also includes support for ‘prosumers,’ who both produce and consume their own electricity. The final version fixes subsidies of PLN 0.75 (EUR 0.18) per kWh to prosumers with a capacity of up to 3 kW, and PLN 0.40-0.70 (EUR 0.10-0.17) for those with a capacity between 3 and 10 kW.

This part of the Act was not backed by the government and was only introduced due to the support of some MPs from the junior coalition PSL party.

Although drafting began four years ago the Act was only presented to parliament for debate in 2014 and was eventually passed in late February this year. President Komorowski’s signature means that the Act will come into force in 30 days’ time, though certain parts will only apply from 2016.

The final passage of the Act may also help to reassure investors, who had previously been worried by the ongoing debate over the Act and uncertainty over its final shape. (sl/rg)

Source: PAP