State aid: Commission approves prolongation of Polish aid scheme to support electricity production from renewable energy sources
The European Commission has approved, under EU State aid rules, the prolongation of an existing scheme to support electricity production from renewable sources in Poland. The measure was initially approved in 2017 (SA.43697), with a budget of approximately €9.4 billion (PLN 40 billion), and was set to expire on 30 June 2021. On 17 December 2020 (SA.59015) the Commission approved an extension of the duration by six months, until end 2021. The Commission has now approved the prolongation of the scheme for the period 2022-2027. Aid is granted in the form of a variable premium on top of the market price, calculated as the difference between bidding price and the wholesale electricity price.
The Commission assessed the measure under EU State aid rules, in particular the 2014 Guidelines on State aid for environmental protection and energy. The Commission found that the aid is necessary to further develop energy generation from renewable sources and to help Poland meet its environmental targets, set at European and national level. Poland committed to carry out an ex-post evaluation to assess the features and implementation of the prolonged scheme. The Commission concluded that the prolonged measure remain in line with EU State aid rules, as it will continue to contribute to increase the share of renewable energy in Poland and reduce greenhouse gas emission, in line with the European Green Deal objectives, and without unduly distorting competition in the Single Market.