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EC approves €5 billion Polish support for cogenerated electricity

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Christian Fernsby | Monday April 15, 2019 8:42AM ET
cogenerated electricity
Europe   The European Commission has approved under EU State aid rules a Polish scheme

The European Commission has approved under EU State aid rules a Polish scheme to support high-efficiency cogeneration and reduced surcharges to finance the scheme for energy-intensive users.


It opened an investigation into reduced surcharges to finance Poland's capacity mechanism.

The scheme will support combined heat and power (“CHP”) installations connected to district heating networks in Poland.

The scheme, with an annual budget of €500 million, will run until 31 December 2028.

The support will be granted to new and refurbished highly efficient CHP installations, as well as to existing gas-fired highly efficient CHP installations.

It will be also open to generators in other Member States.

The highly efficient CHP installations benefitting from the scheme will receive support through a premiumon top of the market price (“cogeneration premium”).

The level of the cogeneration premium will be set either in a competitive bidding process or, in exceptional and clearly defined cases, determined administratively at a level covering the difference between the generation costs and the market price of electricity.

The cogeneration premium will be granted until the full depreciation of the installations it supports, for a maximum period of 15 years. TheCommission concluded that the scheme will support the production of electricity from highefficiency cogeneration and lead to a better integration of cogenerated power into the electricity market, in line with EU environmental and climate objectives, without unduly distorting competition in the Single Market.

 

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