Polish energy law, specifically Article 32 of the Act of 10 April 1997 – Energy Law (Journal of Laws), provides for exceptions in this regard, which allow heating activities to be carried out without the need to obtain a licence.
Heat generation without a licence
Pursuant to Article 32(1)(1)(e) of the Energy Law, a licence is not required to carry out activities involving the generation of heat in sources with a total installed thermal capacity not exceeding 5 MW.
It should be clarified that the total installed capacity is, in other words, the sum of the capacities of the sources operated by a given heat producer. For example, an operator who owns two heat generation sources – each with an installed thermal capacity of 2 MW – is not required to obtain a licence. However, if the operator adds a further source with an installed thermal capacity of 2 MW, the total will exceed the 5 MW limit set out in the above provision, and a licence will be required.
A specific exemption is provided for in Article 32(4) of the Energy Law, according to which there is no need to obtain a licence when conducting business activities involving the generation of heat obtained in industrial technological processes, provided that the capacity ordered by consumers does not exceed 5 MW.
Initially, the interpretation of the term ‘industrial technological processes’ raised some doubts due to the lack of a statutory definition. Ultimately, however, it was accepted that the provision in question refers to the generation of heat as a by-product of a technological process, understood as a set of activities constituting the actual production process, i.e. covering the main activity for which heat production is merely a by-product.
Trading in thermal energy without a licence
Pursuant to Article 32(1)(4) of the Energy Law, conducting business in the field of heat trading does not require a licence, provided that the capacity ordered by customers does not exceed 5 MW.
Actual heat capacity is the amount of heat withdrawn from a heat distribution centre per hour. The ordered thermal capacity, however, is defined in § 2(21) of the Regulation of the Minister for Climate of 7 April 2020 on detailed rules for the formulation and calculation of tariffs and settlements for heat supply (Journal of Laws, item 718, as amended) and means the maximum heat capacity, determined by the customer or the entity applying for connection to the district heating network, which will occur in a given facility under design conditions and which, in accordance with the technical conditions and technological requirements for that facility as specified in separate regulations, is necessary to ensure.
It should be emphasised, however, that the limit on the capacity ordered by consumers to 5 MW, as set out in the above-mentioned regulation, applies collectively to all consumers of heat generated by a specific operator.
If you are interested in starting a heating business or require assistance with the relevant legal regulations, please contact HWW Law Firm.
Frequently asked questions
Can I generate heat without a license if my sources have a total thermal capacity of up to 5 MW?
Yes, a license is not required if the total installed thermal capacity of all sources operated by an entity does not exceed 5 MW. This capacity is the sum of the capacity of all owned sources, so adding a new source may exceed this limit and require obtaining a license.
When is heat generation as part of industrial technological processes exempt from licensing?
The exemption from licensing applies to heat generation as a by-product of a production process, provided that the capacity ordered by consumers does not exceed 5 MW. The heat must be a by-product of the main activity, not its purpose in itself.
Do I need a license for thermal energy trading for small consumers?
No, conducting business in the field of thermal energy trading does not require a license, provided that the capacity ordered by consumers does not exceed 5 MW in total. This limit applies to all consumers of heat generated by a specific entrepreneur.
What exactly does ordered capacity mean in the context of heat trading?
Ordered capacity is the largest thermal capacity that may occur in a given facility under design conditions and which is necessary to ensure supply. This is a value determined by the consumer or entity applying for connection to the network.
A matter in energy or renewables law?
That is where most conversations with a lawyer begin. A consultation is paid, PLN 600 net. You pay for a real opinion: whether you have a legal problem, what you can do about it and roughly what it costs. It ties you to nothing further, and you do not need to know the law, that part is on us.
- 1 Talk
You tell us what is going on, in your own words.
- 2 What next
We tell you your options and what it costs.
- 3 We act
You give the go-ahead and the matter is ours.
She gained experience in providing day-to-day legal services to individuals and entrepreneurs at a number of law firms in Warsaw specializing in corporate law and family law. At the firm, she provides services to entrepreneurs and individual clients in the field of contract and business law. As part of her professional practice, among other things, she analyzes, reviews and creates civil law contracts, prepares legal opinions in the field of civil and business law, and drafts and prepares corporate documents,…
View profile →
