Commission approves €1.2 billion Polish state aid scheme to support investments in electricity storage facilities to foster the transition to a net-zero economy

The European Commission has approved a €1.2 billion Polish scheme to support investments in electricity storage facilities to foster the transition to a net-zero economy. The scheme was approved under the State Aid Temporary Crisis and Transition Framework (‘TCTF’), adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and on 2 May 2024.

Poland notified to the Commission, under the TCTF, a €1.2 billion scheme to support the installation of at least 5.4 GWh of new electricity storage facilities to foster the transition to a net-zero economy. The scheme will be financed (i) partly by the Modernisation Fund, and (ii) partly by the Recovery and Resilience Facility (‘RRF’) following the Commission’s positive assessment of Poland’s Recovery and Resilience Plan and its adoption by the Council.

The scheme aims at reducing the reliance of the Polish electricity system on fossil fuels and at facilitating the smooth integration of variable renewable energy sources in the national electricity system, by supporting the construction of electricity storage facilities. The scheme will support only newly installed storage facilities with a capacity of at least 4 MWh.

Executive Vice President Margrethe Vestager (pictured), in charge of competition policy, said: “With this €1.2 billion scheme Poland can deploy additional electricity storage capacity. By facilitating the integration of renewables into the electricity system, the scheme will make the Polish energy mix greener and reduce its reliance on imports of fossil fuels from Russia, in line with the EU climate and energy targets, while minimizing any potential distortions to competition.”

A press release is available online.

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