The ambitious development strategies recently published by Poland’s leading energy companies – Orlen, Tauron and Enea, require faster legislative changes from the government, especially in the renewable energy sector, argue experts from Baker McKenzie. Without an acceleration of legislative work, the state-owned companies may face challenges in achieving goals related to the development of their own renewable energy sources (RES) and reaching climate neutrality.
A wave of investments in renewable energy is ahead for Poland, in which the biggest players in the Polish market will significantly participate. By 2035, the Orlen Group plans to invest 8-15 billion zlotys annually in energy projects. A significant portion of these funds will be allocated to green energy. Tauron plans to invest a total of about 30 billion zlotys in RES by 2035, while Enea plans to invest 36 billion zlotys. The result is expected to be an increase in the production capacity of renewable energy sources owned by these three firms to around 22 GW. In 2024, they totalled just under 3 GW.
“The biggest players in the Polish energy market have presented very ambitious plans to achieve climate neutrality, which in the long run will result in a complete transformation of the Polish sector,” says Agnieszka Skorupińska, a partner leading the sustainable development and energy transformation practice in the Warsaw office of Baker McKenzie. “The development strategies of these companies have a chance of success provided they receive support from the state, especially in terms of accelerating legislative changes. On one hand, smooth implementation of new projects, especially in the RES field is necessary; on the other, stability of the energy system must also be ensured.”
Among the most anticipated legislative changes are the reform of the distance law for onshore wind turbines and the adoption of regulations implementing the RED III directive, which foresee facilitation and acceleration of the permitting process for RES projects. Stakeholders also look forward to agreement with the European Commission on the National Energy and Climate Plan, which will set Poland’s path for energy transformation, thereby supporting the development of the RES sector. Calls are being made for changes to regulations on grid connections, which would allow greater exploitation of the potential of renewable energy sources, among other things by incorporating the possibilities offered by energy storage facilities.
“Despite the many changes that have occurred in recent years, there is still room for improvement and modification of regulations supporting investment in renewable energy sources,” says Arkadiusz Ratajczak, a legal advisor in the field of sustainable development and energy transformation in the Warsaw office of Baker McKenzie. “The challenges not only concern the development of prosumer energy, micro-installations and connection problems, often discussed in public debate, but also the facilities essential for the biggest players who can greatly contribute to the energy transformation of our country.”
By 2035, Orlen plans to reduce energy emissions intensity by 55% and at the same time cease coal energy production. Tauron aims to stop using coal for heat production by 2030 and achieve climate neutrality by 2040. Enea plans to reduce coal involvement in energy production from the current 89% to 18% by 2035.
The biggest players in the energy market have different strategies to achieve their goals, and their needs for legislative changes and state activity vary. Orlen’s plans include investing in proven RES technologies like onshore wind farms and photovoltaic plants, but also they have ambitions to engage in offshore projects, small nuclear reactors (SMR), biomethane and even hydrogen. Tauron’s RES development plan is largely based on onshore wind sources. The absence of amendments to the distance law and the consequential blocking of location potential for new investments have the greatest impact on the chances of implementing this company’s strategy.
Baker McKenzie lawyers highlight the importance of facilitating energy for the entire Polish economy over the next 10 years. Investments on the scale planned by the major energy companies will require the involvement of specialised subcontractors, both in the implementation of RES projects and suppliers from other important sectors such as construction or industry.
“Entities servicing investment processes in the energy market as suppliers and contractors should pay particular attention to the progress in implementing ambitious plans set by the major players in the national energy sector,” adds Agnieszka Skorupińska. “There’s a great chance that the next ten years will be a period of increased activity for all entities working in this sector.”
Source: https://ceo.com.pl/baker-mckenzie-zmiany-w-prawie-kluczowe-dla-przyszlosci-odnawialnych-zrodel-energii-w-polsce-19602
