EC approves €5 billion Polish support for cogenerated electricityChristian Fernsby ▼ | April 15, 2019
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.
Europe The European Commission has approved under EU State aid rules a Polish scheme
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. ■