In the face of the COVID-19 pandemic, renewable energy projects in Poland have largely remained resilient. Nevertheless, government measures have allowed auction winners a 12-month postponement for their production timeline obligations, reflecting the need for flexibility during these uncertain times.

The initial stages of the pandemic brought about a decline in electricity consumption as lockdown procedures took effect. However, as spring progressed, a gradual stabilization emerged. Data from Entso-E, a European electricity transmission system operator, reveals that on April 30th, the maximum load experienced a year-on-year decrease of 8%, with a total load of 19,457 MW. PGE, Poland’s largest power company, estimated a 10% year-on-year decrease in power consumption for April. On a global scale, the World Bank predicts a remarkable 40% drop in energy prices compared to 2019, anticipating a substantial rebound in 2021.

In response to the unfolding economic challenges, the Polish government swiftly implemented a series of measures, collectively known as the Anti-Crisis Shield, to mitigate the adverse market effects. Notably, the Financial Shield, a significant component of this initiative, represents the most substantial economic support measure ever extended in Poland’s modern history.

Prime Minister Mateusz Morawiecki underscored the significance of the Financial Shield, which, in conjunction with the Anti-Crisis Shield, amounts to over PLN 300 billion (approximately EUR 66 billion). The primary aim of this financial safeguard is to provide rapid funding to protect jobs and businesses in the face of economic turmoil.

To qualify for government assistance, companies must adhere to two fundamental criteria: they must continue their operations and refrain from laying off employees. Prime Minister Morawiecki emphasized the simplicity of this solution, which is designed to provide swift and effective aid during these challenging times.

Under the Renewable Energy Sources Act, renewable energy producers who have already secured auction wins can request an extension of the deadline for commencing the sale of electricity, with an extension period of up to 12 months. This measure acknowledges the practical difficulties posed by the pandemic and offers flexibility to renewable energy projects.

Furthermore, the Act on the compensation system for energy-intensive sectors and sub-sectors streamlines the payment process for energy-intensive companies, addressing any interpretational uncertainties that may arise. This streamlined compensation mechanism seeks to provide timely relief to these critical economic players.

In recognition of the importance of critical infrastructure, including energy, the government has enacted measures allowing the owners of such infrastructure to access the property during a state of emergency without the need for consent from property owners, users, or managers. This move is aimed at ensuring the seamless functioning of essential services during times of crisis.

As Poland navigates the intricate energy landscape amidst the ongoing pandemic, these government measures aim to provide support, flexibility, and stability to the renewable energy sector and the broader energy-intensive industries, demonstrating a commitment to adaptability and resilience in the face of unprecedented challenges.