Energy Law in Poland

Last updated: 01.01.2026

Energy Industry in Poland

The Polish energy sector operates on the basis of The Act of 10 April 1997 – The Energy Law, which serves as the primary framework for regulating the energy industry. This comprehensive legislation defines the rules for energy companies, grid connection procedures, licensing, and utility regulation.

Over the years, it has been adapted to include new rules reflecting EU directives, climate change policies, and the development of renewable energy installations such as wind power plants and solar farms.

At the same time, it addresses challenges posed by fossil fuels, natural resources, and the modernization of the electricity system. For the Polish government, ensuring stable energy production, affordable energy prices, and cheaper electricity for household customers is a key element of long-term energy policy.

Polish Energy Sector – Legal Framework

The legal basis for the functioning of the energy sector in Poland is provided by numerous legal acts that comprehensively regulate the issues of energy generation, distribution, and trading. The most important laws include:

• The Energy Law of April 10, 1997, which defines the rules of operation for energy market entities, the conditions for connecting to the grid, and conducting energy activities;
• The Renewable Energy Sources Act of February 20, 2015, aimed at supporting and developing energy based on renewable sources;
• The Act on the Capacity Market of December 8, 2017, regulating mechanisms to ensure adequate capacity availability in the energy system;
• The Act on the Promotion of Electricity from High-Efficiency Cogeneration of December 14, 2018, supporting the production of energy in combined heat and power generation;
• The Energy Efficiency Act of May 20, 2016, which aims to increase the efficiency of energy use in the economy;
• The Excise Duty Act of December 6, 2008, regulating the taxation of electric power and other energy carriers.

Energy Law in European Union

Energy law in Poland is closely linked to European Union regulations, which form the basis for the creation of a single, competitive, and sustainable energy market throughout the Community. EU legislation aims not only to ensure energy security, but also to support energy transition, protect the environment through environmental regulation, and achieve ambitious climate goals.

The European Union’s energy policy is based on four main principles:

• decarbonization,
• competitiveness,
• security of supply, and
• sustainable development.

Key regulations in the EU energy sector include:

• The Renewable Energy Directive (RED), which sets targets for the share of energy from renewable sources in total energy consumption and supports the development of low-carbon technologies;
• The Energy Efficiency Directive, which requires Member States to implement measures to increase the rational use of energy and improve energy efficiency at all levels of the economy;
• Regulations on the electricity and gas markets aimed at integrating national markets within the single European market, ensuring the free movement of energy and price transparency;
• Directives on energy security, which set out rules for Member States to prepare for potential energy crises.

EU regulations place particular emphasis on decarbonizing the economy and supporting investment in innovative technologies such as energy storage, electromobility, and smart grids and other modern technologies.

European countries are required to implement these standards by adapting their own legal systems, which requires constant monitoring of legislative changes at the European level and rapid response to new challenges, significant changes and requirements.

In practice, this means that entities operating in the energy sector must constantly adapt to applicable standards, participate in energy market mechanisms, and use the support instruments available at the EU level.

In addition, in 2015, the EU adopted an energy union strategy that sets five key objectives:

• diversification of energy sources and solidarity between countries,
• integration of the energy market without barriers,
• improvement of efficiency and reduction of emissions,
• decarbonization of the economy in accordance with the Paris Agreement,
• and support for innovation in low-carbon technologies.

Since then, the European Parliament has published annual reports monitoring the implementation of the strategy and progress towards the Energy Union’s objectives.

Fuel and Energy – Regulatory Authority in Poland

The President of the Energy Regulatory Office (URE) is an independent government administration body responsible for regulating and supervising the energy market in Poland. The most important tasks of the President of the URE include issuing licenses for activities related to the generation, transmission, distribution, and trading of electric power and gaseous fuels.

The Office is also responsible for monitoring compliance with energy law by market participants, with the aim of ensuring market stability and transparency.

The President of the URE approves price tariffs for electricity, gas, and heat, which directly affects the costs incurred by consumers. In addition, the Office protects the rights of energy consumers by monitoring the quality of services provided and intervening in the event of violations.

The President of the Energy Regulatory Office also acts as an energy security regulator, supervising the reliability of energy supplies and taking measures to prevent market disruptions.

In addition, the President of the Energy Regulatory Office carries out activities aimed at supporting the development of renewable energy sources and energy efficiency, and monitors the implementation of the state’s energy policy. The Office is also responsible for keeping registers and records related to the energy sector and for cooperating with national and international authorities in the field of energy market regulation.

All these activities are aimed at ensuring a sustainable, secure, and competitive energy market in Poland.

Implementation of Energy Investments in Poland

Energy Investments – Formal obligations and permits in Poland

Energy projects – such as photovoltaic farms, wind farms, biogas plants, and combined heat and power plants – require going through a specific administrative process. In Poland, this includes, among others:

• Concession for electricity generation – issued by the President of the Energy Regulatory Office (URE) for installations above 1 MW. For smaller sources, a notification may be sufficient.
• Conditions for connection to the power grid – obtained from the distribution or transmission system operator. These conditions specify the technical possibilities for connecting a given installation.
• Environmental decision – required depending on the type and scale of the investment, specifying the impact on the environment and possible measures to minimize this impact.
• Building permit – required for most installations; obtaining it is preceded by the submission of the project to the architectural and construction administration authority.
• Notifications to registers and support systems – including the Register of Small Installation Energy Producers (WEMI), the URE register, or the RES auction system (if the investor is applying for support).

In the case of hybrid projects (e.g., RES + energy storage), the requirements may be cumulative.

Financing and Support for Energy Investments in Poland

Investors can take advantage of a wide range of support programs, both national and EU:

• NFOŚiGW (National Fund for Environmental Protection and Water Management): offers grants and preferential loans for projects in the fields of energy efficiency, electromobility, RES, energy storage, circular economy, and energy modernization of industry.
• BGK (National Development Bank): provides financial instruments for infrastructure and industrial investments (e.g., guarantees, loans, repayable financing).
• PARP (Polish Agency for Enterprise Development): supports companies in the areas of energy innovation, industrial transformation, new technology development, and the implementation of green solutions.
• European funds for 2021–2027 – including the European Funds for Infrastructure, Climate and Environment Program (FEnIKS), available, among others, for investments in transmission networks, renewable energy sources, energy management systems, and low-emission heating.

Energy investments – Accelerated Administrative Procedures (RED III)

Under the new EU Renewable Energy Directive (RED III), EU member states, including Poland, are required to simplify and shorten the processes for issuing permits for renewable energy investments. In practice, this means:

• Creating so-called accelerated RES development zones – areas where green energy investments can be implemented more quickly, with a simplified procedure.
• Introducing maximum deadlines for issuing administrative decisions – e.g., 12 months for RES installations in preferential zones.
• Digitization and integration of procedures – increasing the transparency and accessibility of information about the investment process for investors (e.g., through one-stop-shop portals).

Preferences for Energy-Intensive Industries

Operating or planned industrial plants with high energy consumption can benefit from various forms of support, including:

• Relief for energy-intensive consumers – including exemptions from certain fees (e.g., RES and cogeneration fees), provided that certain criteria are met (e.g., energy consumption intensity index).
• Compensation mechanisms – e.g., compensation for indirect costs resulting from the EU ETS, granted to selected industrial sectors.
• Support for investments in energy efficiency – subsidies and tax relief for the modernization of equipment, industrial automation, and energy management systems (EMS).

FAQ – Energy Law in Poland