Amendment to the Energy Law (UC84) after parliamentary work – how the rules for grid connection have changed
From the outset of the legislative process, the UC84 draft has sparked controversy within the industry. Representatives of the renewable energy sector pointed out that the proposed solutions — particularly those concerning financial securities — could significantly increase barriers to entry for new investments in the renewable energy market.
The debate over the final shape of the regulation was especially intense during the parliamentary stage, where some of the original provisions were modified.
As a result, the act adopted by the Sejm maintains the core direction of the reform proposed by the government, while its final version incorporates some of the demands raised by market participants.
Increase in the advance payment for the connection fee
Among the changes introduced is an adjustment to the advance payment required when submitting an application for grid connection conditions.
Under the previous framework, applicants were required to pay an advance of PLN 30 per kilowatt of requested connection capacity, with a maximum cap of PLN 3 million. This mechanism was originally introduced to limit purely speculative applications.
The latest version of the act doubles the advance payment to PLN 60 per kW of requested capacity, while also increasing the maximum cap to PLN 6 million.
The justification provided indicates that the purpose of this increase is to strengthen the selective function of the advance payment. According to the authors of the draft, the previous fee level was relatively low compared to the scale of energy projects planned in Poland, particularly in the renewable energy sector. As a result, it did not constitute a meaningful barrier for entities lacking genuine investment capacity.
From the investors’ perspective, this change represents a significant increase in project preparation costs at a very early stage of the investment process. For large-scale installations, the advance payment may reach several million zlotys. This implies the need to secure adequate financing even before obtaining key administrative decisions.
The measure is intended to have a disciplining effect and to limit the practice of reserving connection capacity by projects with a low level of advancement, which in the long term should contribute to greater transparency in the investment process.
Changes regarding financial securities
The proposal to introduce mandatory financial security for projects applying for grid connection also raised controversy during the legislative process.
The earlier version of the draft required such security to be provided exclusively in the form of a cash deposit. The amount was set at PLN 30 per kW for installations up to 100 MW and PLN 60 per kW for larger installations.
This solution was widely criticized by the energy sector. In particular, it was argued that requiring cash-only security would effectively freeze substantial financial resources in the accounts of transmission system operators for extended periods throughout the investment process. In the case of large projects, this could result in capital lock-ups amounting to tens of millions of zlotys.
During parliamentary work, the proposal was therefore revised. The final version of the act expands the catalogue of acceptable forms of financial security to include both bank guarantees and insurance guarantees.
Adjustment of regulations concerning investment timelines
Another key issue in the debate over UC84 concerned the deadlines within which investors must obtain key administrative decisions, particularly building permits.
The original version of the draft introduced relatively strict timelines for completing successive stages of the investment process. This was intended as an additional tool to prevent projects that are not actually being implemented from maintaining grid connection conditions.
However, representatives of the energy sector pointed out that, under Polish administrative conditions, obtaining all required decisions may take significantly longer than the statutory deadlines allow. This is particularly relevant for environmental decisions, planning procedures, and construction permits, which are often subject to administrative and judicial disputes.
In response to these concerns, the legislator clarified the provisions regarding the extension of statutory deadlines. In particular, the definition of force majeure was broadened to include other circumstances beyond the investor’s control.
This change is intended to account for situations where project delays result from factors independent of the investor, such as prolonged administrative proceedings or appeals before administrative courts.
On 4 March 2026, the Senat adopted the act with amendments. At this stage, the draft will return to the Sejm, which will consider the changes proposed by the upper chamber. Only after the completion of this stage of the legislative process may the act be submitted to the President of Poland for signature.
