Tax Alert: Launch of the consultation on the aid scheme for construction of energy storage facilities

Funding under the Program will be granted to entrepreneurs (within the meaning of the Polish Entrepreneur’s Law).

It will be available for the construction of energy storage facilities, with a capacity of at least 2 MW and capable of storing no less than 4 MWh of electricity, having EU CER and fire safety certification and approval (e.g., battery containers, inverter stations, transformer, installation of battery modules, supporting systems, such as detection systems, fire detection systems, air conditioning systems, DC/DC or DC/AC converters, or active and inactive protection mechanisms) connected to the distribution grid at all voltage levels.

Funding will also be available for financing the construction of a grid connection and associated infrastructure, as well as the configuration and adaptation of a storage facility (BMS, EMS, mapping in monitoring systems, creating remote access to devices and/or data, certification and approval of the energy storage facility according to EU standards, etc.).

The proposed program assumes a sustainability period of up to 5 years from the date of completion of the investment.

A budget of PLN 4 billion will be allocated under the Scheme. Importantly, it will be possible to obtain funding in the form of grants of as much as PLN 3.6 billion, while PLN 400 million will be available in loans. Subsidies in the form of grants are to cover a maximum of 45 percent of the total investment cost.

The aid intensity can be increased by 20 percentage points for small enterprises and by 10 percentage points for medium-sized ones.

Funding in the form of loans, granted on preferential or market terms, can cover as much as 100 percent of eligible costs.

The interest rate on the concessional loan will be WIBOR 3M + 50 base points, but not less than 1.5 percent per annum. In turn, the interest rate on loans granted on market terms, i.e., loans that do not constitute public aid, will be set at the reference rate in accordance with the Communication from the Commission on the revision of the method for setting the reference and discount rates.

The loan can be granted for a period of up to 20 years, calculated from the date of the scheduled disbursement of the first tranche to the date of the scheduled repayment of the last principal instalment.

Subsidies will not be provided for investment project costs that have been covered with domestic or foreign public funds. This, however, will not apply to energy storage facilities in the capacity market.

Call for applications under the Scheme “Energy storage facilities and related infrastructure for improving the stability of the Polish electricity grid” will be launched already this year. Subsidy contracts are to be entered into by the end of 2025, while the period for spending the funds ends with 2028.

Some of the conditions of the Program can still be modified. The consultation process ends on 6 August. Remarks can be submitted to: magazyny.przemysl@nfosigw.gov.pl. The following must be included in the e-mail subject: Konsultacje społeczne „Magazyny energii elektrycznej”.

The official communication (in Polish) can be accessed at: Ruszyły konsultacje społeczne ws. magazynów energii elektrycznej. W planie budżet 4 mld zł na zwiększenie bezpieczeństwa energetycznego kraju - Narodowy Fundusz Ochrony Środowiska i Gospodarki Wodnej - Portal Gov.pl (www.gov.pl)

The KPMG Team remains at your disposal for any further information you might require.