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Energetics 9 May 2024 approx. 2 min read

Increase in RES connection refusals and new challenges on the Polish energy market

Aleksandra Lindner Author Aleksandra Lindner Adwokat, Partner
Increase in RES connection refusals and new challenges on the Polish energy market

Key points of the report:

  1. Monitoring of operators’ activities.

The report highlights the continued role of the Energy Regulatory Office (URE) in monitoring the activities of distribution system operators. URE regional offices carried out detailed analyses and inspection procedures (194 procedures) aimed at assessing energy companies’ compliance with regulations regarding the timely issuance of grid connection conditions and analysing cases where such conditions were refused. This data was used to assess the situation and introduce any necessary adjustments to the operators’ activities.

  1. Increase in the number of connection refusals.

In 2023, there was a 6.05% increase in the number of refusals to connect renewable energy installations to the grid compared to the previous year, which translates into a 63.76% increase in connection capacity. This trend is the result of both growing interest in renewable energy investments and technical and economic challenges in adapting existing electricity grids.

  1. The issue of refusals to issue connection conditions.

The Energy Regulatory Office (URE) is conducting a detailed investigation into the reasons for refusals to connect to the grid, which are often linked to a lack of suitable technical or economic conditions. In 2023, nearly half of the refusals (3,568) were due to a lack of technical conditions for a total capacity of approximately 41,839 MW, whilst 2,231 refusals were economically motivated, covering a total capacity of 17,865 MW. The Energy Regulatory Office (URE) emphasises the need for energy companies to immediately notify customers of a refusal to connect, stating the reasons for this decision.

  1. New regulations and obligations for companies:

From December 2022, energy companies must provide applicants with an estimate of the connection fee under non-tariff conditions and the method of its calculation, with the aim of increasing the transparency and fairness of the process.

  1. URE recommendations for the future:

The report contains recommendations regarding changes to regulations that will enable easier and more efficient connection of renewable energy installations to the grid. It highlights the need to separate the rules governing the connection of different types of consumers and generation units, which could eliminate ambiguities and increase flexibility in connecting new generation capacity. The URE also emphasises the need to develop energy storage systems and integrate renewable energy installations with the existing grid infrastructure, which is crucial in the context of the energy market’s growing needs.

The report concludes that the measures and regulations introduced by the URE are a step towards increasing the country’s energy stability and security, whilst supporting the green transition and the development of renewable energy sources.

https://www.ure.gov.pl/pl/urzad/informacje-ogolne/edukacja-i-komunikacja/publikacje/sprawozdania-z-dzialaln/2916,Sprawozdania-z-dzialalnosci-Prezesa-URE.html

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Aleksandra Lindner
Author
Aleksandra Lindner
Adwokat, Partner

Expert in energy, commercial and business law - She has extensive experience in the areas of energy, commercial and business law, gained both at renowned Warsaw law firms and by serving as in-house lawyer at leading energy, financial and new technology companies. Her professional practice focuses on providing comprehensive legal services to corporations, managing mergers and acquisitions (M&A) transactions, transformations of commercial companies, and in resolving corporate disputes.

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