Energy storage subsidies for entrepreneurs? New idea from the National Fund for Environmental Protection and Water Management
Energy storages are a technology that can rapidly increase the flexibility and security of the Polish energy system. To achieve this, it is necessary to create the right market conditions for investors. In addition, the construction of storage facilities could be significantly accelerated by EU funding for the energy transition.
It looks like the latter condition may soon be fulfilled. The National Fund for Environmental Protection and Water Management is preparing a programme to subsidise energy storage facilities.
Who will be able to benefit from the funding?
Financial support under the programme 'Electricity storages and related infrastructure for the improvement of the stability of the Polish electricity grid' will be directed to entrepreneurs in accordance with the Entrepreneurs' Law.
Funds from this programme will be available for new energy storage facilities with a capacity of at least 2 MW and a capacity of no less than 4 MWh, which will be connected to the distribution network at all voltage levels.
The construction of energy storage facilities with EU CER safety and fire protection certification and approval will be a condition for receiving funding. This includes battery containers, inverters, transformers, installation of battery modules and supporting systems such as detection and fire protection systems, air conditioning, DC/DC or DC/AC converters, and active and passive protection, along with testing and acceptance.
Funding will also cover the construction of a grid connection and associated infrastructure. Funds will also be able to be used for the configuration and adaptation of storage facilities, including BMS, EMS, integration with monitoring systems, the creation of remote access to equipment and/or data, as well as the certification and approval of energy storage facilities in accordance with EU standards.
The draft programme stipulates that the sustainability period of the investment will be a maximum of 5 years from the date of its completion
The programme's budget will be as much as PLN 4 billion, most of which will be available as non-refundable funding. PLN 3.6 billion has been earmarked for grants and PLN 400 million for loans.
Grant funding will be able to cover a maximum of 45% of the total investment costs. In addition, the intensity of support can be increased by 20 percentage points for small enterprises and by 10 percentage points for medium-sized enterprises.
Funding in the form of a loan, provided on preferential or market terms, will be able to cover up to 100% of eligible costs.
Loans will be available for a maximum of 20 years from the date of the scheduled disbursement of the first tranche to the date of the scheduled repayment of the last capital instalment.
The draft programme stipulates that costs related to investment preparation will be eligible up to 10% of the total eligible costs.
Call for applications
The call for proposals is expected to start later this year. Contracts are expected to be signed by the end of 2025 and disbursement of funds should take place by the end of 2028.
Some of the conditions may still change as the programme is currently in the consultation phase. The public consultation will run from 23 July to 6 August 2024. Comments can be sent to: magazyny.przemysl@nfosigw.gov.pl, writing in the title of the email: Public consultation "Electricity storage facilities".
Detailed information on application deadlines and rules will be available on the NFOŚiGW website.
Before launching the call for proposals under the priority programme, it is necessary to obtain a positive decision from the European Investment Bank (EIB) on the financing of the investment and to complete the public aid notification process.
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