Energy storage in Poland – latest legal changes (August 2023).
In today’s publication, we delve into the subject of legal changes pertaining to energy storage in Poland, particularly its application for the temporary storage of energy generated from renewable sources (RES).
This topic will address both the legal aspects that have been effective in our country for a while and practical considerations related to these solutions. Specifically, we will clarify the concept of the energy storage register and its contents.
The rapidly evolving business landscape prompts lawmakers to take measures ensuring that legal regulations keep up with the emerging reality. The dynamic growth of the renewable energy sector leads to periodic changes in the applicable law. Additionally, EU legislation acts as a catalyst for change, guiding actions to establish genuinely integrated, competitive, consumer-oriented, reliable, transparent, and secure electricity markets across the European Union.
The European Green Deal, presented by the European Commission in December 2019, outlines a comprehensive vision for making Europe a climate-neutral continent by 2050 through the use of clean, green energy, affordable prices, and holistic security. These factors, coupled with the implementation of directives like Directive 2019/944, drive the introduction of new solutions and legal structures into the Polish legal system. Consequently, our national system undergoes continuous changes and amendments.
The majority of modifications in legal provisions will pertain to the Energy Law Act of April 10, 1997 (Journal of Laws of 2022, item 1385), referred to as the “pr. energy.”
Changes in legal regulations – regulations of energy storage in Poland and around the world
It’s important to note that regulations concerning the broad renewable energy sector have been undergoing dynamic changes recently. This trend undoubtedly contributes to the ongoing energy transformation that unfolds before us daily.
The growing interest in renewable energy, heightened competitiveness of solutions in the renewable energy market, and emerging legal regulations in this domain make this topic highly relevant. As a result, it attracts significant attention from a diverse audience.
The recent regulatory amendments have brought about changes in the definitions related to electricity storage:
- In accordance with Article 3, point 6f of the Energy Law Act, an aggregator is now defined as a market participant in the electricity market engaged in aggregation.
- An independent aggregator, as outlined in Article 3, point 6g of the Energy Law Act, is an aggregator not affiliated with the recipient’s electricity seller and not part of a capital group, as defined by Article 4, point 14 of the Act of February 16, 2007, on competition and consumer protection. These definitions, both for aggregator and independent aggregator, have been in effect in the Polish legal system since September 7, 2023.
- As per Article 3, point 10k of the Energy Law Act, electricity storage is now characterized as an installation facilitating the storage of electricity and its injection into the power grid. It’s worth noting that the legislator also introduced the term “energy storage” in a broader sense, allowing its application to various types of energy sources beyond electricity.
- Article 3, point 10ka of the Energy Law Act defines energy storage as an installation enabling energy storage, including electricity storage. This definition came into effect on March 1, 2023.
- According to Article 3, point 59 of the Energy Law Act, the storage of electricity is interpreted as the postponement, within the power system, of the final consumption of electricity. It also encompasses the conversion of electricity obtained from the power grid or generated by a connected generating unit cooperating with this network into another form of energy. This involves storing this energy and subsequently converting it back into electricity.
- Article 3, point 59a of the Energy Law Act explains that energy storage is to be understood as the storage of electrical energy or the conversion of electrical energy collected from the power grid or generated by a connected generating unit cooperating with this network into another form of energy. This entails storing this energy and then utilizing it in the form of another energy carrier.
An essential provision regarding the legalization of energy storage in the Polish legal system is articulated in Article 43g, section 1 of the Energy Law Act. This provision succinctly defines the energy storage register. Despite its longstanding existence, its significance for the entire system remains paramount, warranting a reminder of its statutory wording. According to the regulation, the power system operator is responsible for maintaining, in electronic format, a register of electricity storage facilities connected to its network. These facilities may either form a part of it or be components of a generating unit or end-user installation connected to its network, as specified by the template.
Energy storage register – why is it important for the energy industry?
As an introduction, it should be explained what exactly the electricity storage register is and what information it contains.
What is the register of electricity storage facilities within the meaning of the Act? energetic?
The storage register holds electronic information about storage facilities connected to the network. These facilities can be integral parts of the network or components of a generating unit or an end-user installation linked to the network.
Is the electricity storage register a good solution?
It is crucial to highlight that the establishment of such a register represents an exceptionally beneficial and eagerly anticipated solution within the extensive electrical industry, notably within the renewable energy sector. The implementation of the electricity storage facilities register enables the seamless conduct of thorough and swift analyses, assessments, checks, verifications, and more. This register serves as the official source of information regarding the actual count of electricity storage facilities, with the intention, according to its creators, of witnessing annual increases.
What information is included in the register of electricity storage facilities within the meaning of Art. energetic?
It’s important to clarify the specific information included in the register of electricity storage facilities. This encompasses details such as:
1) Identification of the electricity storage holder, comprising:
a) Name and surname or name along with the legal form of the electricity storage holder;
b) Place of business activity, registered office, and its address;
c) PESEL number or tax identification number (NIP), if applicable;
2) Marking of the electricity storage facility, including:
a) Identification of the technology employed for electricity storage;
b) Data on the total installed capacity of the electricity storage facility, expressed in kW;
c) Data on the capacity of the electricity storage facility, expressed in kWh;
d) Efficiency of electricity storage;
e) Maximum charging power expressed in kW;
f) Maximum discharge power expressed in kW;
g) Place of connection of the electricity storage;
h) Indication of whether the electricity storage is part of the generating unit or the end-user’s installation;
3) Legal title to the owned electricity storage facility.
The details mentioned above are directly derived from Article 43g, section 6 of the Energy Law Act. It is important to highlight that the holder of the electricity storage facility is required to inform the power system operator of any changes to the mentioned data within 14 days of their occurrence. The power system operator, in turn, is obligated to update this data within 14 days of receiving the notification.
Additionally, it is noteworthy that the register of electricity storage facilities is publicly accessible and provided by the electricity system operator on its website. However, certain information, deemed a business secret by the owner of the electricity storage facility or subject to personal data protection, is exempted from public disclosure.
What is the model of the electricity storage register and who establishes it?
Another critical point to emphasize is that it is the minister responsible for energy who, through a regulation, defines the template for the register of electricity storage facilities, the updating template, and the format of data included in the register of electricity storage units. This is guided by the necessity to standardize the transmission of information related to electricity storage facilities and the potential aggregation of data from the registers maintained by power system operators, as stipulated in Article 43g, section 9 of the Energy Law Act.
Other legal updates in the field of electricity
It is also crucial to highlight other provisions within the broader spectrum of energy regulations that have undergone changes or are anticipated to be introduced in the near future. Two noteworthy and emphasized issues include alterations in the provisions of construction law concerning the authority of photovoltaic installations. According to Article 28, section 1 of the Construction Law Act of July 7, 1994 (Journal of Laws of 2023, item 682), notifications and obtaining a building permit will no longer be required. This act will be henceforth referred to as “construction law.”
Changes in construction law regulations in relation to the renewable energy industry:
According to the amended Article 29, section 4, point 3, letter c of the Construction Law Act, the performance of construction works involving the installation of heat pumps, free-standing solar collectors, and photovoltaic devices with an installed electrical power of not more than 150 kW no longer requires a building permit decision and notification, as specified in Article 30. However, it is important to note that for photovoltaic devices with an installed electrical power exceeding 6.5 kW, an obligation to agree with an appraiser applies. This agreement, referred to as “fire protection agreement,” involves ensuring compliance with fire protection requirements, encompassing the design of these devices and notification to the State Fire Service authorities, as outlined in Article 56, section 1a of the Construction Law Act. It should be clarified that this change involves replacing the words “50 kW” with “150 kW.”
This amendment represents a significant change, simplifying the process for investors. Moreover, the increase in the power limit to 150 kW allows for flexibility in the power range, facilitating the implementation of an electricity storage facility, which, under certain conditions, may not be included in the total power (further details on this to follow).
Additionally, it’s essential to highlight that proceedings to issue a building permit for heat pumps, free-standing solar collectors, and photovoltaic devices with an installed electrical power of not more than 150 kW, initiated but not completed before the amendment’s effective date, will be discontinued. This regulation is set to come into force in October 2023.
Note – simplification of administrative procedures due to the RED II directive – quote from the justification to the act:
It’s important to note the rationale behind the proposed amendment to the Construction Law Act: “In terms of administrative procedures within the investment process in renewable energy sources, the RED II directive imposes requirements that Member States of the European Union are obligated to fulfill. According to Article 16, section 4 of RED II, the overall duration of procedures related to issuing permits by competent authorities for installations with an installed capacity of 150 kW and higher must not exceed two years, with the potential extension by one year in case of extraordinary circumstances.
For installations with an installed capacity below 150 kW, the maximum duration of procedures is one year, extendable by one year in particularly justified cases. Similarly, concerning the development of an energy source, the directive mandates the establishment of a streamlined and expedited permitting procedure, lasting one year, with the possibility of extension for another year.
Changes in energy law provisions regarding energy storage and photovoltaic micro-installations:
It’s important to highlight that the legislator specified that when connecting a micro-installation with electricity storage to the distribution network, the installed capacity of the electricity storage facility is not considered if the total power that can be introduced into the distribution network by a micro-installation with an electricity storage unit does not exceed the installed electrical capacity of the micro-installation. This provision is outlined in Article 8d, section 12 of the Energy Law Act, which has been in effect since December 21, 2022. Although this change in the law has been in force, it’s worth mentioning because many entities may still overlook this amendment.
Hybrid RES installations in the context of electricity storage and proposed changes to regulations
To broaden the understanding of the issue related to hybrid Renewable Energy Source (RES) installations, especially concerning electricity storage and proposed legislative changes (including provisions of the construction law due to the RED II directive), it is crucial to explain the context and objectives outlined by the legislator. The proposed obligation for hybrid installations of renewable energy sources to incorporate energy storage aims to deliver substantial benefits for the current operation of the distribution network, averting substantial expenses associated with its expansion. This obligation facilitates easier balancing of energy generated within such units, signifying a significant impact on the development of the energy storage sector. This, in turn, is expected to enhance the efficiency of energy storage facilities, influencing not only large RES installations but also promoting auto-consumption of renewable energy. Importantly, the definition of installed power for a hybrid RES installation accounts for the total rated active power in the case of such installations, offering flexibility for investors to shape configurations based on their preferences. Despite the technology-agnostic approach in the legislation, energy storage emerges as a crucial solution for stabilizing renewable energy, serving as the sole technology available to introduce electricity into the grid during periods of low generation by PV and wind farms. With the increasing prominence of wind and solar sources, measures to stabilize the power system become imperative. The mandatory inclusion of storage in hybrid RES installations is a significant step toward achieving stabilization, flattening power contours transferred to the distribution network, and reducing harmonic impacts. The obligation to include energy storage in the definition of a hybrid installation is expected to stimulate the energy storage market, providing regulatory support for a greater role in the National Power System. Energy stored in warehouses is intended to address network operator needs during periods of low renewable power supply. The dynamic operation of energy storage facilities allows for quick delivery of missing power and effective control of challenging network situations. The proposed regulations are not anticipated to directly impact end-user energy prices, and their potential influence will be determined following a positive assessment by the European Commission. However, addressing the lack of available connection capacity remains a significant barrier to renewable energy development, emphasizing the need for actions to facilitate joint technology use, increase connection utilization, and enhance input power availability—an objective that the hybrid renewable energy installation aims to fulfill. This perspective is drawn from the justification for the Act of July 7, 2023, amending the Act on Renewable Energy Sources and certain other acts.
An attempt to assess legal updates in the field of energy storage and energy law
At this juncture, it is pertinent to evaluate the direction and potential of the legal changes. The commendable aspect lies in the legislator’s use of straightforward, comprehensible, and lucid solutions in the new definitions. This represents a significant advantage for the increased understanding and practical application of the new legal provisions. The high alignment of the regulations with the principles outlined in the European Green Deal’s model assumptions is also noteworthy.
A comprehensive assessment of the new legal regulations can only be conducted after their practical implementation over time. Similar to any change, these legal adjustments come with their own set of advantages and disadvantages. Anticipating additional changes in other acts is reasonable, given the complex nature of issues related to energy transformation. Most regulations will likely need adaptation to accommodate new operational models in the realm of green solutions in the ongoing effort for climate action and public safety.
Energy storage in Poland – summary and conclusions
The subject of electricity storage holds paramount importance in the renewable energy sector. Legal regulations are expected to enhance the implementation of new, innovative, and secure solutions. These regulations should establish a framework for the operation of specific solutions while serving as a clear guide on the legal steps necessary to achieve the primary goal: for Europe to become a climate-neutral continent by 2050. This involves employing safe and proven solutions applicable to all entities, including residents and entrepreneurs.