Energy Newsletter. Amendment to the Energy Law (drafts: UC84 and UDER35)

On 24 March 2025, a bill amending the Energy Law and certain other acts (UC84) was published on the website of the Government Legislation Centre (Rządowe Centrum Legislacji), which aims to increase the resilience of the electricity market to crises and price volatility, streamline the grid connection process, including more efficient use of existing infrastructure, and facilitate the integration of renewable energy sources into grids to support the energy transition and implementation the Union's climate-neutrality objective. The proposed regulations provide for the implementation of a reform of the system of connection to power grids. It includes, the following:

• extending the cable pooling formula by allowing all types of installations to share connections;
• introduction of a mechanism for monitoring compliance with the agreed connection capacity, through the possibility of temporarily suspending the consumption or input of energy by the connected entity;
• simplification of formal requirements for the connection of certain installations to the grid;
• abolishing the deadline for completing the process of connecting RES installations by operators within 48 months from the date of conclusion of the connection agreement.
• mechanisms aimed at releasing capacity from unrealized connection agreements and adjusting fees to market conditions – in particular, shortening the validity period of connection conditions from 2 years to 1 year and conducting auctions for released connection capacity;
• the obligation to set up public information platforms containing up-to-date data on available connection capacity, submitted and rejected applications (with justification) and the technical criteria used;
• increase of the advance payment for the grid connection fee to PLN 60/kW of connection power;
• introduction of a non-refundable fee for examining an application for the issuance of grid connection conditions;
• introduction of the obligation to provide security for the obligations of the connected entity resulting from the conditions of connection to the grid.

According to the proposed amendment, it will be possible to conclude temporary connection agreements in areas with limited network capacity, allowing for temporary restrictions in the consumption or return of energy without liability on the part of the operator.

Currently, the bill is at the stage of giving its opinion. The content of the project can be read: Project

On 21 May 2025, another draft of the Act amending the Energy Law and certain other acts was published. The proposed changes are aimed at enabling the creation of Sustainable Industry Development Zones (SRZP) in the areas of strategic intervention (OSI), which will allow companies, especially energy-intensive ones, to access cheaper energy. The bill aims to simplify the regulations, including, for example, by shortening the time for issuing building permits to 45 days, as well as shortening the deadline for issuing grid connection conditions for entities classified as connection group I or II to 60 days. The draft is at the stage of arrangements before the Standing Committee of the Council of Ministers. Project

Amendment to the Energy Law – what will RES bring to investors?

Anna Szczodra, Co-Managing Partner, Attorney-at-Law, Leader of Advisory for the Energy Industry in Poland and EMA at KPMG Law, spoke to PAP about the upcoming amendment to the Energy Law. The co-managing partner of KPMG Law positively assessed the initiative to increase the transparency of the grid connection process through the obligation to provide up-to-date data on the available connection capacity. He believes that this will help to reduce the submission of applications "just in case" by investors. In addition, the ability to submit and process applications electronically is beneficial. However, she expressed doubts about the introduction of fixed deadlines in connection agreements, an increase in the advance payment for the connection fee, the introduction of a non-refundable fee for the consideration of the application and an auction for the released connection capacity. She noted that such solutions may hinder the implementation of some RES investments, especially due to the shortening of the validity of connection conditions to one year, which may prevent the implementation of installations, especially wind installations.

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OZE kontra rząd. Branża krytykuje projekt ustawy - Bankier.pl

The list of legislative works of the Council of Ministers includes drafts of two amendments to the Environmental Protection Law of 27 April 2001, drafted by the Ministry of Climate and Environment. The first one (UC99) provides for changes in the rules for issuing integrated permits, e.g. by abandoning or clarifying the scope of the analysis carried out after the publication of BAT conclusions, or unifying the requirements for the obligation to have a water law permit for the discharge of industrial wastewater into the sewage system. The second (UDER44) concerns industrial emissions and provides, for example, the introduction of an obligation to perform an analysis to determine the strictest achievable emission limits (BAT AELs), the creation of an application for compensation in the event of damage to health in connection with the improper operation of an industrial installation. The regulations are to be adopted by the government in the fourth quarter. 

In April 2025, information was published on the draft amendment to the Act on the provision of information on the environment and its protection, public participation in environmental protection and on environmental impact assessments and certain other acts (the "EIA Act") was published in the list of legislative works of the Council of Ministers. According to the assumptions, the act aims to improve the quality of procedures related to environmental impact assessments (EIAs), tighten and streamline the system, and increase transparency and public participation in the issuance of environmental decisions and environmental impact assessments. The key areas requiring changes include:

1. With regard to the parties to the proceedings: the need to clarify the subjective scope of the proceedings, improve the effectiveness of notifying the parties to the proceedings and information obligations regarding changes in ownership of real estate and changes in the length of the deadline for submitting comments and applications as part of public participation in proceedings for the issuance of an environmental decision;
2. With regard to applications for environmental decisions: the need to digitalize and reduce paper documentation in proceedings for the issuance of environmental decisions, as well as to standardize environmental data and adapt EIA reports to EU requirements;
3. With regard to the investigating authorities: the need to review the competence of the authorities in order to eliminate conflicts of interest in issuing opinions and to improve cooperation between authorities;
4. With regard to the course of the proceedings: the need to clarify the provisions on the conditions, requirements and obligations set out in environmental decisions and to improve the provisions on the suspension of execution of decisions;
5. With regard to the use of the environmental decision: the need to clarify the mechanism for extending the validity of environmental decisions, the introduction of derogations from the obligation to attach environmental decisions to applications for waste processing permits, the extension of the group of entities obliged to comply with the decisions and to ensure their continuity despite changes in project owners, and the clarification of the provisions on the transferability of decisions, as well as the inclusion of the stage of implementation of projects in the provisions on administrative enforcement of decisions;
6. With regard to the strategic and cross-border EIA: the need to clarify deadlines and procedures, including the need for prior consultations and to improve the information of other countries about the assessments carried out.

The proposed changes also assume, among, increasing the role of EIA databases and clarifying the provisions on the suspension and discontinuance of proceedings. A number of changes are also envisaged in the content of special acts, aimed at unifying and clarifying the provisions on investment decisions and the competence of authorities.

However, a full assessment of the proposed changes will be possible only after the publication of the draft amendment. The government plans to adopt the draft prepared by the Minister of Climate and Environment in the third quarter of this year.

Draft amendment to the Act on Access to Information on the Environment and Its Protection, Public Participation in Environmental Protection, Environmental Impact Assessments, and Certain Other Acts – Gov.pl

KPMG Law expert commentary on the proposed amendment: Changes to be made to the issuance of environmental decisions

Work is underway on a bill amending the Act on investments in wind farms (paper 1130). The amendment aims to accelerate the development of onshore wind energy by abolishing the 10H rule and reducing the minimum distance from residential buildings to 500 meters (compared to the current 700 meters). The proposed regulations introduce new restrictions on the location of power plants in MRT and MCTR airspaces and in the vicinity of national roads, with the possibility of exceptions approved by the General Director for National Roads and Motorways. The changes also include the rules of distance from power grids and allow for parallel environmental and planning procedures. The draft also introduces simplified rules for repowering, i.e. replacing older turbines with new, more efficient ones. The project aims to develop onshore wind energy and diversify energy sources in Poland.

Currently, the draft bill is at the stage of parliamentary work, after the first reading at the parliament session. According to the declarations of the Ministry's representatives, it will be necessary to wait until autumn for the adoption of the act. The draft bill is available on the parliament’s website.

Amendment draft

On 30 April 2025, the Act of 23 April 2025 amending the Act on special solutions for the protection of electricity consumers in 2023 and in 2024 in connection with the situation on the electricity market entered into force¹. The amendments to the act provide for several key postponements of the deadlines. Firstly, the new date of entry into force of the amended electricity tariffs has been postponed from 1 July 2025 to 1 October 2025. Secondly, energy companies will have until 31 July 2025 to submit their tariff applications, instead of the originally planned deadline of 30 April 2025. In addition, the act specifies a new date for updating the publication of average electricity prices, which result from the tariffs of sellers acting as ex officio sellers. This update will take place after the approval of the new tariffs for households in the fourth quarter of 2025.

Amendment draft

¹Journal of Laws of 2025, item 565

On 1 April 2025, the Act of 21 February 2025 amending the Act on Biocomponents and Liquid Biofuels and Certain Other Acts (Journal of Laws of 2025, item 303) entered into force. The Act aims to transpose the provisions of the RED II¹ Directive into the national legal system. The new regulations are to allow for the development of alternative fuels (e.g. biomethane), as well as electricity from RES.

The most important solutions of the Act include:

• Act on Biocomponents and Liquid Biofuels:
  • Determination of the levels of the National Indicative Target (NIT) for the years 2025-2029 (9.2% in 2025 and 10% in subsequent years, respectively);
  • changing the definition of the NIT by extending the catalogue of fuels that can be used to meet the NIT, in particular biomethane, including biomethane introduced into the gas network, which has been delivered to stations for final consumption, e.g. bioCNG.
  • Determination of the minimum share of advanced biocomponents in transport, which is to be 1% from 2025 to 2029, and from 2030 to increase to 3.5%;
  • Setting the maximum share of first-generation biocomponents (i.e. biocomponents produced from food or fodder crops) in final energy consumption in road and rail transport at the level of 6.1%;
  • Setting the maximum share of biocomponents made from used cooking oil and animal fats at the level of 3.4%;
  • gradual phasing out of the mechanism for partial achievement of the NIT by means of a substitution fee, by setting a new minimum level of NIT realisation for which it is possible to pay the substitution fee in 2026: 88%, in 2027 - 90%, in 2028 - 92% and in 2029 - 95%, respectively.

The amendments also concern sustainability criteria, including greenhouse gas emissions, which must be met regardless of the geographical origin of biomass, and the determination of thresholds for meeting the criterion of greenhouse gas emissions by biocomponents and gaseous fuels from biomass, if they are generated in installations in operation, respectively:

The Act also introduces modifications and new definitions, including definitions of biomass, forest biomass, agricultural biomass and biocomponents, both liquid and gaseous, as well as liquid biofuels. For the purposes of the Act, it also defines the concept of direct connection to an installation generating electricity from renewable energy sources. The Act also introduces changes related to the functioning of the registers of biocomponent manufacturers, the register of entities importing fuels and reporting obligations.

• The amendment to the Act of August 25th 2006 on the Fuel Quality Monitoring and Control System will include the repeal of the obligation to meet the National Reduction Target as of 2025, while maintaining the reporting obligations for 2024.
• In accordance with the amended Act of 20 February 2015 on Renewable Energy Sources, the obligation under the REDII Directive to meet the sustainability criteria (ESG criteria) and to reduce greenhouse gas emissions for biomass fuels in RES installations depends on the total nominal thermal power of these installations². Meeting the criteria is a condition for including energy from RES in gross final energy consumption and for using the support system. The RES Act also introduces a minimum threshold for reducing greenhouse gas emissions for bioliquids³ and biomass fuels⁴.

The discussed changes are of key importance for producers and importers of liquid fuels and biofuels, as well as entrepreneurs with RES installations. The main part of the Act entered into force on 1 April 2025, with the exception of the obligations related to the implementation of the NIT, which will come into force on 1 January 2026, and the changes to the settlement of the negative balance, which will enter into force on 1 July 2025 3 months from the entry into force of the Act.

¹This applies to biomass gas installations with a capacity of 2 MW or more, commissioned after 31 December 2023, and fixed biomass installations with a capacity of 20 MW or more, commissioned after 31 December 2020.

²Same as for biocomponents and biomass gaseous fuels;

³Respectively: 70% for the use of biomass fuels in RES installations commissioned in the period from 1 January 2021 to 31 December 2025; and 80% from 1 January 2026.

⁴Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources, as regards legislation on transport fuels.

May 27, 2025 The President of ERO has published the Auction Rules for obtaining the right to cover the negative balance for electricity generated in offshore wind farms (OWF). The Regulations specify among others:

• the way the auctions are organized;
• the method of submitting bids;
• the course and manner of the auction settlement;
• the method of ensuring the safety and correctness of the auction;
• technical requirements for access to the online auction platform;
• conditions for suspending access to the auction platform;
• technical conditions for handling ownership changes in the online auction platform system.

The right to cover the negative balance is the first phase of support for electricity generators in the OWF. In the second phase, support will be provided through an auction organized by the President of the Energy Regulatory Office. The first auction for the IMF is scheduled for 2025. The maximum total installed capacity of the OWF for which the right to cover the negative balance this year can be granted is 4 GW.

Offshore: The President of the Energy Regulatory Office publishes the Rules for auctions to obtain the right to cover negative balances for electricity generated by offshore wind farms

On 26 February 2025, the European Commission announced the "Omnibus" package, aimed at reducing sustainability reporting (SD) and due diligence requirements. The changes proposed in the Omnibus package include increasing the thresholds for reporting DM to the levels of the CSDDD and covering only large enterprises with more than 1000 employees and annual revenues exceeding EUR 450 million. The Omnibus also provides for the introduction of voluntary standards for SMEs, simplifications in taxonomy, CSDDD and CBAM, with a focus on reducing the burden on small and medium-sized enterprises. A key element that has already passed the EU legislative path is the postponement of the obligation to report the DM for companies from the so-called second and third "waves" (i.e. those that are required to report for the first time for 2025 or 2026) by two years and postponing the deadlines for the transposition and application of the CSDDD by one year. On 16 April 2025, Directive (EU) 2025/794 of the European Parliament and of the Council, the so-called "stop-the-clock"^1, was published. The longer implementation deadline is to allow for refinement and agreement on key changes to these regulations.

On 7 May 2025, a bill amending the Accounting Act, the Act on Statutory Auditors, Audit Firms and Public Oversight and Certain Other Acts (UC 93) appeared on the website of the Government Legislation Centre, aimed at implementing the "stop the clock" directive into the Polish legal system. The draft is currently at the opinion stage. The adoption of the act is planned for the second quarter of this year. The draft can be found at: Draft law postponing reporting requirements of the ZR

More about the Omnibus package: "OMNIBUS" package - KPMG Poland

¹Directive (EU) 2025/794 of the European Parliament and of the Council of 14 April 2025 amending Directives (EU) 2022/2464 and (EU) 2024/1760 as regards the dates from which Member States are to apply certain corporate sustainability reporting requirements and certain corporate sustainability due diligence requirements (Text with EEA relevance) OJ L L, 2025/794, 16.4.2025.

Simplification of the CO2 Border Adjustment Mechanism (CBAM) is also part of the Omnibus package, which aims to offset the cost of CO2 emissions for EU and imported products and to encourage more ambitious climate action in non-EU countries.

On 22 May 2025, the European Parliament approved the Commission's proposal as part of the Omnibus I package. This would exempt the vast majority (90%) of importers – mainly small and medium-sized enterprises and individuals – importing only small quantities of goods covered by the CBAM. CBAM's environmental targets would remain achievable, as 99% of total CO2 emissions from imports of iron, steel, aluminum, cement and fertilizer would still be covered by the regulations.

On 27 May 2025, the Council of the European Union adopted its negotiating position on the CBAM mechanism, in which it supported the threshold and introduced additional amendments aimed at further simplifying the rules. The next step is to start negotiations between the Council and the Parliament to agree on the final wording of the rules.

On May 22, 2025, the European Commission issued an implementing regulation to the EUDR Regulation containing a list of countries with low or high risk of deforestation. Belarus, the Democratic People's Republic of Korea, Myanmar/Burma and the Russian Federation were identified as high-risk countries. Among the low-risk countries  were China, India, Bangladesh, Congo, Germany, Poland, Italy, Madagascar. For countries not listed in the annex to the Implementing Regulation, the standard risk level applies. The classification is intended to support operators in carrying out a risk assessment carried out as part of the due diligence process, to determine the compliance of the relevant products with the EUDR Regulation, and to enable competent authorities to effectively monitor and enforce compliance. The origin of the product concerned from a country with a standard or high risk does not exclude the possibility of placing it on the Union market, but they will be subject to increased control by the authorities in terms of the correctness of the risk assessment carried out.

A little earlier, on 15 April 2025, the European Commission published a package of simplifications and updated interpretative guidelines to make it easier for companies to comply with the requirements of the EUDR Regulation. On 13 May 2025, public consultations on the draft delegated act amending Annex I to the EUDR Regulation also ended. Key changes and simplifications include, among others:

• clarifying the scope of the EUDR by excluding (i) product samples, (ii) additional materials attached to the product, such as user manuals, leaflets, catalogues and marketing materials, (iii) bamboo, rattan and other wood-based materials and related products made from them; (iv) clearly reusable packaging used solely to support, protect or carry another product placed on the market and presented with that product from the time of its use for such purpose and thereafter;
• the possibility to re-use due diligence statements (DDS) for products that are remarketed and the possibility to submit DDS once a year, instead of for each shipment or batch of relevant products, and to reduce the number of DDS required for repeat product deliveries;
• the possibility to refer in the DDS to the geolocation of parcels and scientific names of products that are available in statements made at an earlier stage.

EUDR Regulation – KPMG Poland

Amendments to EUDR Regulation – KPMG Poland

The first half of 2025 abounded in proposals for changes to the public procurement system. The most important of them include the planned changes in the following areas:

1. increasing the threshold from which the public procurement law will apply;
2. restrictions on entities from third countries, i.e. China or Turkey, applying for public contracts;
3. the introduction of a certification system for public procurement contractors.

The first issue does not raise too much controversy. Due to the increase in costs, the Polish legislator decided to increase the threshold from which the Public Procurement Law will apply from PLN 130,000 net to PLN 170,000 net.

The restriction of access to the European public procurement market for entities from third countries that are not a party to the GPA agreements from autumn 2024 raises a lot of emotions. On 22 October 2024, the Court of Justice of the EU issued a judgment in the Kolin case (C-652/22), which became an impulse for a debate on the need to limit access to the EU public procurement market for contractors from countries such as China and Turkey. Representatives of the Polish public procurement market, primarily from the construction industry, emphasized that contractors from these countries, due to the subsidies granted to them, can offer the execution of contracts at a lower price. Despite government support, entities from third countries offer to perform orders in a quality that does not meet European standards. As a result of the public debate, a bill amending the Public Procurement Law and the Act on Concession Contracts for Construction Works or Services was drafted, which introduced restrictions on the possibility of applying for public contracts by entities from third countries, and closed the way to legal remedies.

The last proposal for changes to the public procurement system concerns the certification of contractors operating on the public procurement market. The certificate issued by the relevant accreditation body is to enable contractors to use a single document confirming that there are no grounds for exclusion from the procedure and that they meet the conditions for participation in the procedure.

KPMG experts in Poland contributed to the creation of the Polish chapter of the third edition of the Legal 500 Country Comparative Guide, which includes a comprehensive legal and regulatory overview of the ESG landscape. Some of the areas covered in the guide include:

• Legal obligations for the implementation of a net-zero emissions strategy
• Regulations on the use of plastics, circularity of products and producer responsibility
• Mandatory reporting on diversity, equality and pay for women and men
• Human Rights Due Diligence in Supply Chains
• Legal risks associated with unsubstantiated sustainability claims

The guide is not only a useful resource for lawyers, but also for business leaders, compliance teams, and ESG executives who need to meet changing demands.

Poland: Environmental, Social and Governance – Country Comparative Guides

On June 10-12, 2025, the PSEW2025 Conference was held in Świnoujście, which brought together leading experts, investors and representatives of the renewable energy sector from around the world. This event, which was the largest industry conference in Poland and Central and Eastern Europe, was devoted to issues related to the development of the energy market and the implementation and operation of RES technologies in Poland.

On the second day of the event, Anna Szczodra, Co-Managing Partner at KPMG Law Poland, took part in a discussion panel that focused on the analysis of the impact of current regulations on the implementation of onshore wind energy projects. Experts debated whether the implementation of OPRO will actually improve investment processes, drawing attention to the fact that the new regulations, instead of facilitating investments, have become too complicated and inflexible. During the panel, the biggest challenges faced by investors were discussed in detail, such as the certification of equipment, high costs of project implementation and lengthy administrative procedures related to the issuance of connection permits.

The conference was also an opportunity to raise the problem of disinformation, which can affect the public perception of investments in wind farms. Experts emphasized the need for education and transparency in communication with local communities to increase acceptance of RES projects. In addition, the potential of green hydrogen as an alternative to gas in Poland was discussed, which may be a key element of the country's energy transition.

During the conference, sessions were also held on innovative technologies and new business models in the RES sector. Participants had the opportunity to learn about the latest technological solutions that can contribute to increasing energy efficiency and sustainable development. In addition, analyses were presented on the impact of global trends on the local energy market, including the growing role of digitization and automation in energy management processes.

PWEA is the largest industry event in Poland and Central and Eastern Europe dedicated to wind energy.

PWEA2025 Conference | Gridaly

https://www.linkedin.com/posts/polskie-stowarzyszenie-energetyki-wiatrowej_psew2025-oze-activity-7339241379404861441-jtXU

Anna Szczodra, Co-Managing Partner, Attorney-at-Law, Leader of Advisory for the Energy Industry in Poland and EMA at KPMG Law, was a guest on the #EONtalks podcast. The conversation with Sara Buszko and Jakub Mędrala focused on energy efficiency in enterprises – a topic that is gaining importance in the context of European regulations and climate and energy transformation.

Why and how to improve a company's energy efficiency?

On 23 April 2025, Anna Szczodra, co-managing partner and Leader of advisory services for the energy sector in Poland and EMA at KPMG Law, took part in a discussion panel on renewable energy sources at the European Economic Congress. She emphasized that although energy balancing is associated with costs, in the long run RES reduce electricity prices. This is due to their emission-free nature and lack of variable costs, such as fuels, which dominate in conventional energy.

Anna Szczodra also drew attention to the potential of modern technologies, such as Power-to-X, which allow for the management of surplus energy from renewable energy sources and transforming it, among others, into synthetic fuels. This is not only a step towards a more sustainable energy mix, but also a real opportunity to increase the competitiveness of the economy and industry.

The panel was also attended by:

• Robert Adamczewski, European Energy
• Dawid Klimczak, Mercer Solar, GoldenPeaks Capital
• Ireneusz Kulka, EDP Energia Polska
• Anna Latuszek, Ministry of Climate and Environment
• Michał Orłowski, TAURON Group
• Adam Palacz, Szczecin Thermal Power Engineering

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As every year, KPMG Poland organized the KPMG conference: ESG Market Foresight 2025, dedicated to ESG issues. This year's edition of the conference focused on two thematic blocks:

• Industry transformation – presentation of specific experiences and proven approaches to decarbonization and implementation of ESG strategies.
• Regulatory changes and ESG reporting – discussion of the latest requirements and practical aspects of reporting.

The conference was also attended by Anna Szczodra, who presented regulatory issues and legislative trends that may affect the issues of sustainable development in the sector.

ESG Market Foresight 2025 - KPMG Poland