Global Solar PV Market Report

Despite coal’s prolonged dominance, Poland has made significant progress toward a shift to renewable energy buoyed by fiscal support in terms of subsidies and tax benefits and revised clean energy targets. As per the 2023 updated “Energy Policy of Poland until 2040”, the Polish Ministry of Climate has unveiled the third scenario, mentioning that zero-emissions sources should account for 74% of the installed capacity and cover around 73% of Poland’s electricity demand by 2040, which signifies a substantial increase over the previous energy policy of 23% of renewable energy sources in power generation by 2030.

Solar, as the leading renewable energy source, has a crucial role to play considering its substantial irradiation potential in Poland. On the policy side, a notable amendment was brought in early Q22022, as the net-metering system was replaced by a net-billing system, whereby the amount of electricity injected and retrieved from the grid is balanced in an hourly settlement for micro installations. This modified regime incorporates better dimensioning of PV installations and investments in additional equipment like heat pumps and battery storage systems to enable the use of surplus solar energy. Another regiment, the Mój Prąd (My Electricity)

scheme was remodified at the end of Q42022 to provide additional benefits to rooftop solar and energy storage systems. Now residential rooftop solar installation can benefit from the 50% increase in subsidy from the previous PLN4,000 and storage installations can enjoy more than 2x increase in rebates of the prior PLN7,500.

Poland has not only focused on supporting small-scale PV systems but has also taken significant steps to promote utility-scale solar projects. In 2022, the Polish Council of Ministers introduced a new auction scheme, recognizing the success of auctions in driving the utility-scale solar market. The government plans to allocate around 9GW of new solar capacity in procurement exercises to be held up to  2027.  However,  Russia’s  invasion  of  Ukraine  and  the related energy crisis resulted in a disappointing uptake in the latest auction, causing it to be minorly unsubscribed, as in the Q42022 renewables auction, only 336MW of solar capacity could be awarded from a planned allocation of 486MW. Despite this setback, the series of auctions scheduled until 2027 will continue to provide opportunities for Poland to fulfill its climate commitments.

With the advent of the geopolitical issue and pressure of decarbonization, the Polish government has been attempting to deploy investments from international institutions to assist the renewable industry. In 2022, the European Bank of Reconstruction and Development (EBRD) made significant investments of approximately €792 million in Poland’s green projects. Out of this funding, around €126 million was directed towards renewable energy developers, with €45 million specifically allocated for solar projects. These investments are aimed at enhancing Poland’s energy security by promoting the development of sustainable alternatives to Russian gas.

Financial aid provided by international institutions is an indication of the attractiveness of the Polish solar sector, which has resulted in rampant activity taking place in recent times. In association, the Polish government publicized in Q12023 the launch of a PLN1 billion to support investments in renewable energy sources and energy storage in rural areas. Under the same, farmers and energy cooperatives can seek co-financing grants for renewable installations as a subsidy of a maximum of PLN20 million or a loan of up to PLN25 million. Also, financial assistance provided by the state-owned Polish Development Fund has enabled Polish renewable energy investor Lewandpol Group to secure a loan worth PLN90 million for a 200MW solar and wind energy project. Such aids instigate investors to implement ambitious energy projects to accelerate the green transition.

The strong PPA activity, especially due to the higher demand from the corporate sector, has enhanced the competitiveness of the solar market in Poland, with unsubsidized projects leading the way. Notably, Poland’s largest solar plant, the 204MW solar park in Zwartowo by Goldbeck Solar, went online in September 2022. The project was able to secure financing with an intelligent combination of CfD, PPA and merchant revenues. In another notable development, Qair Polska signed a PPA to supply 2TWh of renewable energy from its wind and solar plants to a big international company operating in Poland. The company is negotiating contracts with leading brands, which would grow its portfolio to 5TWh.

Moreover, as energy and raw material prices are soaring, Poland is focusing on self-sufficiency to reduce supply- chain bottlenecks, such as in the efforts of companies like the Unimot group, which is actively tripling its PV manufacturing capacity. This can drive substantial investments in the sector.