Innovation, Grants & Incentives Alert: Supporting energy transition

The call is aimed at two groups of beneficiaries and available for two types of projects, namely:

• entrepreneurs conducting business activity in the field of energy generation, with an installed thermal and/or electric capacity of energy sources of at least 50 MW.

Beneficiaries in this group can obtain support for investments related to the construction and/or reconstruction of generating units with a total installed capacity of not less than 10 MW. The co-financing is eligible for installations from which no more than 30% of the usable heat generated in a cogeneration unit will be fed into the public heating network.

• all enterprises

Beneficiaries in this group can obtain support for investments related to the construction and/or reconstruction of generating units with a total installed capacity of not less than 0.5 MW. The co-financing is eligible for installations from which no more than 50% of the usable heat generated in a cogeneration unit will be fed into the public heating network.

Under both project types, support will be available for units operating in conditions of high-efficiency cogeneration (excluding energy generated in a coal-fired cogeneration unit) including connecting them to the grid in which energy is produced by using: waste heat, energy from renewable sources, gaseous fuels, gas mixtures, synthetic gas or hydrogen. The investment may include connection to the power grid or an energy storage.

The total amount allocated for this call is almost PLN 3.5 billion (including almost PLN 1.5 billion in the form of grants). The financing can also take form of a loan for up to 100% of eligible costs, while the financing in the form of a grant is to cover from 30% to 65% of eligible costs. Applications are accepted from 22 April 2024 on a continuous basis, until the funds are exhausted. Applications are to be submitted to the National Fund for Environmental Protection and Water Management.

The call is dedicated to energy companies conducting licensed business activity in the field of heat transmission and distribution. Investments covered by support are:

1. Construction and/or reconstruction of automation, telemetry and telemechanics systems involving the implementation of modern IT/OT tools and solutions for, among others, supervision, control, monitoring and analysis of qualitative and quantitative parameters of the heating system operation and heat/cold transmission, as well as failure location. 
2. RES installations generating energy solely for the needs of devices related to the telemetry and telemechanics system, where an energy storage facility may be an element of the RES installation, provided that it is integrated with the RES source.
3. Projects for the use of waste heat from the control room operating for the purposes of managing the heating network. Co-financing is possible provided that the installation will operate in conditions of high-efficiency cogeneration. An element of the project may be a connection to the distribution network.

The total amount allocated for this call is over PLN 280 million (including almost PLN 85 million in the form of grants). The financing can also take form of a loan for up to 100% of eligible costs, while the financing in the form of a grant is to cover up to 50% of eligible costs. Applications are accepted from 13 May 2024 to 30 September 2024 on a continuous basis, until the funds are exhausted. Applications are to be submitted to the National Fund for Environmental Protection and Water Management.

The call is aimed at businesses conducting economic activity in the field of heat generation or combined heat and electricity generation.

It is to support the use of storages and other devices for network stabilization, including through preparation and adaptation of the distribution network to new working conditions (e.g. comprehensive modernization of substations and/or high/medium/low-voltage switchgears, etc.), provided that it shown that the works are necessary to be carried out (optional project scope); construction of a storage system as an integrated element of the distribution network (e.g. battery containers, inverters, transformers, assembly of battery modules, supporting systems) along with tests and acceptance of storage facilities, and building connections with the (electric power and ICT) network and DSO systems (obligatory project scope), as well as warehouse configuration and adaptation (BMS, EMS, mapping in monitoring systems, creating remote access to devices and/or data, etc.)(optional project scope).

The total allocated amount for this call is PLN 200 million. The financing will be available in the form of grants covering up to 60% of eligible costs. Applications are accepted from 1 July 2024 to 30 June 2025. Applications are to be submitted to the National Fund for Environmental Protection and Water Management.

The beneficiaries of the program are Distribution System Operators (DSOs).

Under the program, support will be allocated to projects related to electric power infrastructure used for the development of electric vehicle recharging stations, including construction of new/expansion/modernization of transformer and distribution stations (power substations) at all voltage levels; expansion/modernization of switchgear bays or improvement of the supervision and control system (including monitoring) of these transformer and distribution stations; construction/reconstruction of HV, MV, LV power lines as well as increasing the degree of network automation, development of measurement systems, communication systems and IT systems enabling or improving the conditions for monitoring and visualizing the network operation in order to adapt it to the increased saturation with distributed generation sources and electric vehicle charging stations, used to provide energy distribution services on an equal basis to all consumers and energy sales entrepreneurs.

The total allocated amount for this call is PLN 230 million. The financing will be available in the form of grants covering up to 60% of eligible costs. Applications are accepted from 3 June 2024 to 30 November 2024. Applications are to be submitted to the National Fund for Environmental Protection and Water Management.

The beneficiaries of the program are Distribution System Operators (DSOs).

Under the call, support will be allocated to activities that aim at purchasing and installing remote reading meters (AMI) as well as modernization/adaptation of energy infrastructure for the purpose of servicing, managing, and correct using of such meters purchased. The projects are intended to create software for network performance analysis, reports on savings, statistics, losses, and to allow the system to be aligned with the newly created central energy market information system, used to provide energy distribution services on an equal basis to all consumers and energy sales entrepreneurs.

The total allocated amount for this call is PLN 238 million. Funding in the form of grants of up to 100% of eligible costs will be provided for activities related to the installation of meters, adaptation of the necessary energy, telecommunications or technical infrastructure required for the proper functioning of this meter at the end user, as well as software costs (including metering systems and remote reading systems). Funding in the form of grants of up to 50% of eligible costs will be provided for activities related to the purchase (excluding installation costs) of remote reading meters - AMI smart meters. Applications are accepted from 22 April 2024 to 30 September 2024. Applications are to be submitted to the National Fund for Environmental Protection and Water Management.

The beneficiaries of the program are micro-, small and medium-sized enterprises.

Funding will be granted to support projects aimed at implementation of environmental technologies related to promote circular economy in enterprises, which will result in better material management, increased energy efficiency and enterprises’ transition towards the elimination of waste. Projects must meet jointly the conditions below, including the requirement related to the applicable implementation periods: 1) the start of implementation of the project must not be scheduled later than within 6 months from the submission of the application for support; 2) the completion of the project must not extend beyond 31 March 2026.

The total allocated amount is PLN 325 million. The maximum aid amount is PLN 3.5 million. The maximum co-financing in the form of a grant is up to 85% of the eligible costs. The aid intensity depends on the type of expense, company size, and the investment project location. Applications are accepted from 25 June 2024 to 20 August 2024. The call is handled by the Polish Agency for Enterprise Development. 

The call is aimed at companies (SMEs, small mid-caps, and mid-caps).

Its goal is to support activities to promote transition towards increased energy efficiency of businesses, including thermal modernization of buildings and modernization/replacement of the existing infrastructure for improved energy efficiency. The modernization must result in a reduction of primary energy consumption in the upgraded area by at least 30% compared to current consumption.

The total allocated amount for this call is PLN 660 million. The subsidy will take form of an environmental bonus, i.e., a refund of a part of the principal of a green loan intended to cover eligible investment costs. The aid intensity depends on the type of expense, company size, and the investment location, amounting up to as much as 80%. The maximum total eligible costs, however, cannot exceed PLN 50 million. Applications are accepted from 22 April 2024 to 25 July 2024. Another call under the program is scheduled for the period 17 October 2024 - 30 December 2024. The call is handled by Bank Gospodarstwa Krajowego.

The call is aimed at entrepreneurs conducting business activity in the field of heat generation or heat and electricity generation, implementing the project as part of a district heating system, with the ordered thermal power, as at the date of submission of the application, below 50 MW. Support will be granted for investments related to the construction and/or reconstruction of generating units with a total installed capacity of not less than 1 MW, operating in conditions of high-efficiency cogeneration (excluding energy generated in a coal-fired cogeneration unit) and connecting them to the grid in which energy is produced by using:

• waste heat,
• energy from renewable sources,
• gaseous fuels,
• gas mixtures,
• synthetic gas or
• hydrogen.

The financing can also take form of a loan for up to 100% of eligible costs, while the financing in the form of a grant is to cover 50% of eligible costs. The call is scheduled for the period July - December 2024. Applications are to be submitted to the National Fund for Environmental Protection and Water Management.

The beneficiaries of the program will be entrepreneurs conducting business activity in the field of energy generation, with an installed thermal and/or electrical capacity of energy sources of at least 50 MW, implementing a project as part of a heating system, with the ordered capacity, as at the date of submission of the application, not less than 50 MW. Support will be granted for investments related to the construction and/or reconstruction of generating units with a total installed capacity of not less than 10 MW, operating in conditions of high-efficiency cogeneration (excluding energy generated in a coal-fired cogeneration unit) and connecting them to the grid in which energy is produced by using :

• waste heat,
• energy from renewable sources,
• gaseous fuels,
• gas mixtures,
• synthetic gas or
• hydrogen.

The financing can also take form of a loan for up to 100% of eligible costs, while the financing in the form of a grant is to cover 50% of eligible costs. The call is scheduled for the period July - December 2024. Applications are to be submitted to the National Fund for Environmental Protection and Water Management.

The calls that are still open for applicants include: “RES – heat sources for district heating (Modernisation Fund)” and “CEF 2 Transport - Alternative Fuels Infrastructure Facility” – see the Alert on calls available in Q2 2024 for more information.

In addition, there is an ongoing call for entrepreneurs with legal title to installations covered by the ETS, as part of the “Energy-intensive industry – RES” and “Energy-intensive industry – improving energy efficiency” programs. The funding provided for calls under each program has not been used up and the National Fund for Environmental Protection and Water Management is encouraging entities to apply for funding.

Under the above-described calls, support is offered to a wide array of enterprises of various size. Due to high allocation of funds and substantial variety of support offered, the programs can prove attractive to KPMG clients in various industries. Importantly, the schedule for 2024 offers other calls promoting energy transition.

Entities interested in obtaining support should immediately start working on developing concepts for projects planned to be submitted as part of applications for funding.

KPMG experts from the Innovation, Grants & Incentives group posses vast experience in advising on the effective acquisition of financial support in the form of grants, incentives, and subsidies.

Our team will help you prepare the project, from the initial concept stage, through the preparation of the application for support, the evaluation stage, to the correct settlement of the incurred expenses.

We encourage you to contact us regarding the above calls, as well as other ventures (including projects related enterprise development or R&D activities).