Energetics 14 October 2024 approx. 3 min read

District heating activities without a licence – in which situations is this possible?

Aleksandra Chomicka Author Aleksandra Chomicka Radca prawny, Senior Associate
Działalność ciepłownicza bez koncesji - w jakich sytuacjach jest to możliwe

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Actual heat capacity is the amount of heat withdrawn from a heat distribution centre per hour.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.

Aleksandra Chomicka
Author
Aleksandra Chomicka
Radca prawny, Senior Associate

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 →
Do you have questions on this topic?

HWW lawyers offer consultations in Warsaw and online.

Send us a message

Monthly Legal Check

Do not miss the next analysis

Key legal changes and their business impact, once a month to your inbox.

By subscribing you accept the privacy policy. Unsubscribe with one click.

Related publications

Book a consultation

Book a consultation with one of our lawyers.