Grid Act (UC84) adopted by the Council of Ministers

On December 15, 2025, the President of the Republic of Poland signed an amendment to the Act on the Functioning of Hard Coal Mining, which will enter into force on January 1, 2026. The act organizes the process of phasing out coal extraction, strengthens protections for employees, and introduces new rules for mine closures and asset transfers, with a view to developing post-mining areas. This Act was described in detail in Newsletter 4/2025 and Newsletter 2/2025.

Ustawa z dnia 4 grudnia 2025 r. o zmianie ustawy o funkcjonowaniu górnictwa węgla kamiennego oraz niektórych innych ustaw

The Act passed by the Polish Parliament on December 18, 2025, has been submitted to the President for signing. The bill provides for an increase in funding limits for mines and institutions that perform safety and drainage work in mining facilities, which will allow for the continuation of work such as the liquidation of old workings, site security, and groundwater pumping. The maximum limits for state budget expenditures for 2026 and 2027 are increased.  In 2026, the limit is to be increased by PLN 9,813,500.00, while in 2027, the limit is expected to increase by PLN 38,829,652.00.

The subsidy covers, among others, the Wieliczka Salt Mine, the Bochnia Salt Mine, the Coal Mining Museum in Zabrze, the Machów Sulphur Mine in liquidation, and the Mine Restructuring Company (Bolko Pumping Station).

Druk nr 2072 - Sejm Rzeczypospolitej Polskiej

The Ministry of Climate and Environment has submitted to the Council of Ministers a draft update of the National Energy and Climate Plan (KPEiK) for 2030, with a perspective extending to 2040. The document constitutes a key element of the national energy and climate policy, aligned with the EU’s objectives of achieving climate neutrality by 2050. The plan maintains two scenarios: WAM, for accelerated transformation including mobilizing mechanisms, and WEM, for a balanced transformation utilizing existing mechanisms. By 2030, the share of renewables in electricity production is to reach—according to both the previous and current plan—from 51.6% (WEM) to 53.2% (WAM). In the heating sector, the share of renewables will be lower, ranging from 32% to 36%. The WAM scenario is understood as an active transformation scenario, aimed at achieving the assumptions and objectives of Fit for 55. It assumes the implementation of new climate and energy policy instruments—beyond those currently in force—in order to accelerate development, improve the competitiveness of the economy, and gradually move towards climate neutrality. The detailed assumptions of the KPEiK were presented by KPMG experts in the August edition: Newsletter 2/2025.

Projekt Krajowego Planu w dziedzinie Energii i Klimatu do 2030 r. z perspektywą do 2040 r. - wersja przekazana do dalszego procedowania na poziomie Rady Ministrów - Ministerstwo Klimatu i Środowiska - Portal Gov.pl

On Wednesday, January 8, at its first meeting in 2026, the Council of Ministers adopted the long-awaited amendment to the Energy Law (UC84). The draft focuses primarily on a thorough reform of the connection process, responding to the demands of the energy industry and the challenges associated with the transformation of the energy market in Poland. Work on the draft took over a year. The draft bill, the first version of which was published in March 2025, as we reported in Newsletter 1/2025, has undergone numerous modifications over the past few months. The amended regulations are intended to accelerate investments and support the development of renewable energy sources, energy storage facilities, and biogas plants. It has been pointed out that the new regulations will increase the availability of connection capacity, and end users will gain greater control over costs. The draft provides, among other things, for: shortening the validity of connection conditions from 24 to 12 months, increasing the advance payment for the connection fee from PLN 30 to PLN 60 for each kW of connection capacity, introducing a non-refundable fee for processing a connection application (PLN 1 per kilowatt of power, not more than PLN 100,000), and the provision of security (PLN 30 per kW up to 100 MW, above this power PLN 60 per kW, but not more than PLN 12 million) for connection applications. Other changes include extended cable pooling, allowing connections to be shared not only by renewable energy installations, but also by energy storage facilities and other installations, and the introduction of new types of connection agreements: flexible and configurable, which will allow for temporary or variable connection conditions, depending on network operating parameters. Operators will be required to maintain public information platforms with data on available capacities and the status of applications, and the application process itself will be simplified. The amendment aims not only to increase market transparency and efficiency, but also to adapt the Polish system to EU requirements and dynamic changes in the energy sector. The draft law has been negatively received in the renewable energy sector, mainly due to provisions related to the provision of collateral, which, according to experts, will block access to the market for smaller projects. The draft act is expected to be considered by the Sejm in January.

Projekt

Szybciej, prościej, skuteczniej. Rząd przyjął reformę o kluczowym znaczeniu dla transformacji energetycznej - Ministerstwo Energii - Portal Gov.pl

The Ministry of Climate and Environment has published and submitted to the Standing Committee of the Council of Ministers a draft amendment to the RES Act, replicating key elements of the so-called “wind turbine act” that was vetoed by the President in August 2025. The main assumptions of the draft act were presented in Newsletter 4/2025.

The new wind energy bill introduces a number of key improvements to the investment process for onshore wind energy. Above all, it allows for the simultaneous conduct of planning and environmental procedures, although the planning procedure must be completed before the environmental decision is issued. It also introduces the possibility to locate wind farms based on an integrated investment plan. Importantly, the draft does not provide for shortening the minimum distance between wind turbines and residential buildings, which was one of the most controversial points of previous proposals. The act organizes consultation requirements regarding local spatial development plans (MPZP) for wind power plants, transferring them to the Act of 27 March 2003 on spatial planning and development¹. It also allows for the construction of wind farms in areas where the MPZP does not provide for either wind turbines or residential buildings, provided that the current distance restrictions are maintained.

The draft abandons the obligation for investors to pay PLN 20,000 per year for each 1 MW of capacity to neighbors of the wind farm, which appeared in the final stage of work on the previous act. Instead, it expands the possibility for residents and municipalities to participate in up to 10% of the farm’s capacity as virtual prosumers.

The amendment also introduces an auction support system for biomethane plants above 1 MW, dividing them into two capacity categories. Supported biomethane must come from agricultural biogas or biomass meeting sustainability criteria. The first auction is planned for this year, and by 2030, the support is expected to enable the creation of 53 biomethane plants. The draft also simplifies the construction of direct pipelines for biogas and biomethane.

In the area of RES, the draft allows energy produced during negative price hours to be counted towards the volume obligation, but without financial support. It also proposes limiting the use of photovoltaic farm capacity in summer to 50%, and introduces facilitations for prosumers, such as the possibility to build larger energy storage facilities. The act clarifies the definition of biomass, including biodegradable industrial waste.

Projekt

¹Journal of Laws 2024m, item 1130.

The Government Legislation Centre has published a draft act amending the Act on Waste Electrical and Electronic Equipment and certain other acts (UC97), aimed at a comprehensive revision of the regulations concerning the management of waste electrical and electronic equipment, in line with the latest requirements of the European Union. A key element is the implementation of Directive 2024/884¹, which changes the existing rules for handling e-waste, including photovoltaic panels. The main assumptions of the draft act were presented in Newsletter 2/2025.

The new regulations include modifications to the cut-off dates that determine the allocation of responsibilities related to the processing of waste equipment—this change affects the classification of devices as “historical equipment” and specifies who is responsible for their management.

The draft also introduces the institution of an authorized representative. This solution is mainly addressed to foreign companies placing equipment on the Polish market—henceforth, they will be required to appoint such a representative, who will assume the obligations related to waste management. Penalties are also provided for failure to comply with this obligation.

The amendment includes changes to several acts: on waste electrical and electronic equipment, on vehicle recycling, on waste, and on packaging management. The goal is to streamline the system and ensure compliance with EU regulations, and the new provisions are to enter into force 14 days after their announcement.

Projekt

¹Directive (EU) 2024/884 of the European Parliament and of the Council of 13 March 2024 amending Directive 2012/19/EU on waste electrical and electronic equipment (WEEE)

The Ministry of Finance and Economy has published a draft act  amending the Act on Sureties and Guarantees Granted by the State Treasury and Certain Legal Persons (UD336). The amendment is of key importance for the directions of Poland’s economic development, as it provides that state support in the form of sureties and guarantees will be focused on projects addressing the challenges of the energy transition, implementing the climate policy objectives of the European Union—including zero- and low-emission projects—and supporting the country’s digitalization.

The draft assumes that State Treasury sureties and guarantees will primarily cover investments financed by credit, loans, or bond issues that contribute to the development and maintenance of infrastructure, environmental protection, technological progress, support for the defense industry, as well as the implementation of strategic government programs. This is a clear focus on projects of strategic importance for the economy and national security.

A novelty is the increase of the maximum threshold of the amount covered by a surety or guarantee—from 50% to 80% of the obligation—in the case of projects that do not meet the criterion of special importance for the economy or defense. The procedure will also be simplified: the requirement to make the effectiveness of a surety or guarantee conditional on the payment of a commission fee will be removed.

The drafters emphasize that the changes are primarily intended to organize and streamline the State Treasury surety and guarantee system, making it more flexible and adapted to the needs of a modern economy.

Projekt

On December 19, 2025, the Council Presidency and representatives of the European Parliament reached a preliminary agreement on amending the European Climate Law. The amendment process was described in Newsletter 4/2025. As part of the agreement, a new, intermediate, and binding EU climate target for 2040 was set, assuming a net reduction of greenhouse gas emissions by 90% compared to 1990 levels. The compromise adopted by the European Parliament includes not only the determination of the emissions reduction target, but also the possibility to use international emission units for up to 5% of the reduction, as well as postponing the introduction of the ETS2 system until 2028. Additionally, the agreement stipulates that every two years an assessment will be carried out to verify progress towards achieving the intermediate targets.

Climate target for 2040: Council and Parliament agree on 90% emissions reduction – Consilium

On December 17, 2025, the European Parliament approved amendments to the EUDR regulation¹, postponing its application by another year and introducing simplifications regarding obligations for operators and traders. This is a response to numerous concerns raised by Member States, businesses, and administrations regarding readiness to implement the new regulations and technical challenges related to the EU information system. The key objective of the regulation is to simplify the implementation process and postpone the start date of the regulations to give all interested parties time to prepare adequately.

The most important changes include postponing the entry into force of the new obligations to December 30, 2026 for large and medium-sized enterprises and 30 June 2027 for small and micro-enterprises. Responsibility for submitting the due diligence statement will rest solely with entities that first place the product on the market. Other participants in the supply chain will only be required to collect and store the reference number of the original statement, without the need to further transmit this data. For micro and small entities, a simplified, one-time declaration is provided, which is expected to significantly reduce their administrative burden.

An important element of the agreement is also the exclusion from the scope of the regulation of certain printed materials, such as books or newspapers, due to the marginal risk of deforestation associated with these products (HS code ex 49). The European Commission has been tasked with reviewing the implementation of the simplifications and presenting a report by April 30, 2026, in which it will assess the impact of the regulation on smaller entities and propose possible further improvements.

Link to alert: EUDR: The European Parliament adopts proposal for simplification measures and a one-year postponement of obligations

Link to alert: EUDR: The European Commission abandons the postponement and introduces simplifications and a transitional period

Deforestation: The Council approves simplification of the regulation and postpones its application – Consilium

¹Regulation - EU - 2025/2650 - PL - EUR-Lex

The European Parliament (EP) has tightened previous proposals regarding the withdrawal from Russian pipeline gas and LNG. Additionally, the European Commission (EC) intends to introduce a ban on the import of crude oil from Russia starting in 2027. The regulation, which will enter into force at the beginning of 2026, introduces a ban on Russian LNG on the spot market. Furthermore, as of September 30, 2027, a ban on the import of pipeline gas from Russia will take effect.

The EU is phasing out the import of Russian gas | News | European Parliament

On December 10, 2025, the Commission published the European Grids Package. This is a comprehensive set of regulations and guidelines, initiated by the European Commission, aimed at significantly accelerating the modernization and expansion of energy infrastructure across the European Union. The package is a response to challenges related to energy security, the need to increase the share of renewable energy sources, and the necessity to reduce dependence on fossil fuel imports. The key objective is to create an integrated, resilient, and efficient energy network that will enable the transmission of clean and affordable energy between Member States. In practice, the European Grids Package introduces a range of solutions to streamline the planning and implementation of infrastructure projects at both national and regional levels. Particular emphasis is placed on the development and strengthening of cross-border connections, which is intended to facilitate energy trade and increase market competitiveness. The package also provides for the acceleration of permitting procedures and greater public participation in decision-making processes, to build trust and reduce the risk of investment delays. An important element is the promotion of smart grids and modern technologies, which will allow for better energy flow management and the integration of diverse sources—from wind to photovoltaic installations. The package also emphasizes infrastructure security, both in physical and cyber terms, as well as the mobilization of private and public investment necessary for network expansion. Part of the published package are the 2w-CfD Guidelines, which provide Member States with guidance on designing two-way contracts for difference. The 2w-CfD Guidelines are for informational purposes only and are not binding for Member States. In practice, however, compliance with them may be a condition for obtaining approval for state aid.

https://energy.ec.europa.eu/document/download/869c0537-3fcb-4d0a-bd05-e8b0c3696c12_en?filename=COM_2025_1005_1_EN_ACT_part1_v6.pdf

The assumptions for the draft amendment to the Act on Amendments to the Accounting Act, the Act on Statutory Auditors, Audit Firms and Public Oversight, and certain other acts, published on Monday, December 22, implement the provisions of the Directive of the European Parliament and Council amending Directives 2006/43/EC, 2013/34/EU, 2022/2464, and 2024/1760 with regard to certain requirements for corporate sustainability reporting and due diligence. The Directive narrows the scope of entities required to prepare ESG reports to those employing more than 1,000 people and with net sales revenues exceeding EUR 450 million. Additionally, it allows Member States to exempt such entities from the first stage of reporting, which fall outside the new scope of entities required to report, from ESG reporting for the financial years 2025 and 2026. The anticipated amendment aims to implement the exemption option as soon as possible, so that entities can benefit from it before the deadline for preparing the activity report for 2025, which falls at the end of March 2026.

Projekt ustawy zmieniającej ustawę o zmianie ustawy o rachunkowości, ustawy o biegłych rewidentach, firmach audytorskich oraz nadzorze publicznym oraz niektórych innych ustaw - Kancelaria Prezesa Rady Ministrów - Portal Gov.pl

In a judgment issued on December 2, 2025 (case ref. P 10/16), the Constitutional Tribunal made a groundbreaking assessment of the existing practice of transmission companies (or the State Treasury) acquiring land easements corresponding to transmission easements through acquisitive prescription.

In considering the legal question in this case, the Constitutional Tribunal questioned the constitutionality of the interpretation of Article 292 of the Civil Code in conjunction with Article 285 § 1 and 2 of the Civil Code, which allowed the period of possession of the property by a transmission company prior to the introduction of the transmission easement institution into the Civil Code to be taken into account for acquisitive prescription. The Tribunal clearly indicated that such a practice—whereby transmission companies acquired easements corresponding to transmission easements by prescription, in the absence of a prior administrative decision interfering with the right of ownership and without compensation to the owner—contravenes the Constitution (Article 21(2) and Article 64(2)) and Article 1 of Protocol No. 1 to the European Convention on Human Rights.

The judgment is significant for property owners whose land has, for years, hosted power lines, gas pipelines, or other infrastructure—transmission companies can no longer invoke acquisitive prescription of easements in situations where there was no formal decision interfering with property rights and no compensation was paid. On the other hand, the judgment opens the way for property owners to claim compensation for unauthorized use of their land and to establish transmission easements, especially with regard to installations constructed before 2008.

At the same time, the ruling does not automatically invalidate all existing legal titles—it does not constitute a uniform resolution for all property owners with transmission infrastructure on their land. Each case may require an individual decision. However, the Constitutional Tribunal's judgment sets new interpretative guidelines for common courts and, in practice, requires a more rigorous assessment of interference with property rights in the maintenance and expansion of transmission infrastructure.

Trybunał Konstytucyjny: Zasady nabycia w drodze zasiedzenia służebności gruntowej odpowiadającej treścią służebności przesyłu przez przedsiębiorcę przesyłowego lub Skarb Państwa

Connection fees to the electricity grid of a wind farm
 

The Director of National Tax Information issued an individual interpretation (ref. 0111-KDWB.4010.182.2025.1.HK) concerning the tax classification of connection fees to the power grid. The interpretation provides an important clarification for taxpayers involved in the generation of electricity from renewable sources, especially in the context of the growing number of investments in wind farms.
 

Background
 

A limited liability company, a Polish tax resident subject to unlimited corporate income tax liability, carried out an investment involving the construction and commissioning of a wind farm. During the project, the company incurred a number of expenses necessary to ensure the proper functioning of the installation. The key expense was the connection fees required under an agreement concluded with an energy company in accordance with Article 7 of the Energy Law.

The company argued that connecting the farm to the power grid was a prerequisite for the installation to function. The grid enables both the reception of electricity required to power the system (especially during periods of insufficient wind) and the feeding of generated electricity into the grid. The taxpayer questioned whether the connection fees could be included in the initial value of the fixed assets comprising the wind farm or whether they should be treated as current costs.

The taxpayer referred to earlier interpretations of the Director of the Tax Chamber in Warsaw of 14 January 2016 (ref. IPPB6/4510-402/15-2/AK) and of 25 January 2016 (ref. IPPB6/4510-452/15-2/AK), which granted the right to include connection fees in the initial value of fixed assets, pointing to their integral connection with the process of constructing a wind farm.
 

Position of the DKIS
 

The Director of National Tax Information issued a negative opinion on the applicant's position.

The DKIS indicated that connection fees cannot be included in the initial value of fixed assets created as a result of the investment. The interpreting authority conducted a detailed analysis of the provisions of Articles 15 and 16 of the CIT Act, indicating that the costs incurred for the acquisition or production of fixed assets may be included in the initial value only under the conditions specified in Article 16g of the CIT Act.

The provisions of Article 16g(4) of the CIT Act define the cost of production as the value of tangible fixed assets and external services used for production, remuneration and related costs, and other costs that can be included in the value of the fixed assets produced. The DKIS stated that this list does not include expenses indirectly related to the investment, such as administrative or connection fees incurred in the course of the project.

The DKIS's position was based on the assumption that expenses can be included in the cost of production only if they are directly related to the physical production of assets, and not if they relate to administrative formalities or technical conditions enabling the use of a fixed asset.
 

Significance of the interpretation
 

The interpretation represents a change in the position of the tax authorities compared to previous guidelines issued by the Director of the Tax Chamber. It explains that connection fees, although necessary to start up the installation, do not meet the conditions set out in the Act for inclusion in the initial value of fixed assets.

The decision is of great importance for the renewable energy industry, especially for entities implementing wind and solar farm projects. The DKIS's position will serve as a reference point for tax authorities when verifying taxpayers' settlements. The interpretation demonstrates a change in approach – previous positions of the tax authorities recognised connection fees as part of the cost of production, while the DKIS now takes a more restrictive approach.

This change indicates an evolution in the views of tax authorities on the demarcation of investment expenditure, and in particular a deepening interpretative practice in administrative case law.
 

Practical consequences
 

Taxpayers planning investments in wind and solar farms must take into account that connection fees cannot be included in the initial value of fixed assets. These expenses should be treated as tax-deductible costs in the year in which they are incurred, provided that they meet the conditions set out in Article 15 of the CIT Act, i.e. they must be related to the business activity and actually incurred.

In practice, this rule means that taxpayers may deduct connection fees directly in the year in which they are incurred as current costs, which may prove more advantageous than depreciation spread over a period of several years. At the same time, taxpayers should have appropriate documentation confirming the nature and purpose of the expenditure incurred.

For companies that have already included connection fees in their initial value (especially based on earlier interpretations from 2016), the interpretation provides a reference point for verifying previous settlements. They may consider submitting a CIT return correction for periods not yet time-barred if justified by the changed position of the tax authorities.

Taxpayers should also consider the possibility of raising objections to previous decisions of the tax authorities issued on the basis of the DKIS position contained in this interpretation.

Tax consequences of a positive balance in the RES auction support system
 

The Director of National Tax Information issued a favourable individual interpretation (ref. 0111-KDIB1-1.4010.560.2025.1.RH of 1 December 2025) concerning the tax classification of a positive balance arising in the auction system for supporting renewable energy sources. The interpretation provides an important clarification for taxpayers involved in the production of electricity from renewable sources, particularly wind and photovoltaic farms participating in the auction system.
 

Background
 

A limited liability company, a Polish tax resident subject to unlimited corporate income tax liability, participated in an auction conducted under the Act on Renewable Energy Sources of 20 February 2015. The auction concerned the sale of electricity from renewable energy sources. A company participating in the auction system receives support in the form of the right to cover the negative balance – the difference between the auction price and the market price of energy when the market price is lower than the guaranteed price offered in the auction.

In the opposite situation, when the market price of electricity is higher than the auction price, a positive balance arises (a difference in favour of the producer). In accordance with the provisions of the RES Act, the positive balance is to be used primarily to cover future negative balances. If the positive balance is not fully settled by the end of a given settlement period (lasting every 3 years), it must be returned to the renewable energy settlement operator.

The settlement practice consists of the producer reporting data on a monthly basis to calculate the positive or negative balance. However, as the taxpayer emphasises, this was not the final data. The final settlement takes place only at the end of each three-year settlement period, when the operator sends a summary containing precise and final data on the amount of the positive balance.

The taxpayer had doubts about two issues: firstly, whether the positive balance constitutes a tax-deductible cost within the meaning of the CIT Act, and secondly, at what point the taxpayer should recognise this tax cost.
 

Position of the DKIS
 

The Director of National Tax Information issued a positive interpretation, stating that the applicant's position was correct. The interpreting authority waived the legal justification under Article 14c § 1 of the Tax Ordinance, as the taxpayer's position was correct in its entirety.

In its assessment, the DKIS confirmed that:

1. The amount constituting a positive balance resulting from the sale of energy at a market price exceeding the auction price constitutes a tax-deductible cost for the taxpayer within the meaning of Article 15(1) of the CIT Act.
2. This cost should be recognised at the time it is incurred, i.e. when the liability to the operator is recognised in the accounting books on the basis of the final evidence documenting the amount of the positive balance.
3. A positive balance should be treated as an indirect tax-deductible cost (other than directly related to revenue) rather than a direct cost.
4. Correctly, the cost should only be recognised after the end of each three-year settlement period, when there is a final and unchangeable settlement of electricity sales and, thus, a final value of the positive balance.
    

Significance of the interpretation
 

The interpretation provides a clear explanation for the entire renewable energy industry in Poland, especially for the photovoltaic and wind farm sector participating in the auction system. The DKIS explanation dispels doubts that arose from various interpretations issued earlier in similar cases.

The interpretation is particularly important due to the scale of the phenomenon – according to data from the President of the Energy Regulatory Office, thousands of producers participated in auctions for small photovoltaic and wind installations (up to a certain capacity), and similarly in auctions for larger units. Each of these taxpayers needed certainty as to the correct settlement of the positive balance for income tax purposes.

The interpretation confirms the consistent line of DKIS rulings expressed in previous individual interpretations from 2023–2024 (found in the RES Act) and upholds the position that the positive balance is a cost incurred to maintain and secure a source of revenue. This clarification eliminates competing theories as to the nature of the positive balance and provides legal certainty to taxpayers.

The interpretation also sends an important signal to tax authorities conducting audits and verifications in the renewable energy sector – eliminating uncertainty regarding the settlement of positive balances reduces the risk of tax disputes.
 

Practical consequences
 

Taxpayers involved in the production of energy from renewable sources in the auction system can now treat the positive balance as a tax-deductible cost with complete certainty. This means that the expense related to the refund of the positive balance will not constitute income subject to CIT – the taxpayer will be able to deduct it as a cost.

In practice, this means that the positive balance should be recognised in the accounting books only after receiving the final settlement from the operator at the end of each three-year settlement period. Until then, monthly reports constituting supporting material for reporting may therefore be recognised in the accounting books only conditionally, without final classification as a tax cost.

Technically, the taxpayer should:

• Keep monthly accounts based on the operator's reports as supporting documentation
• After the end of the three-year settlement period, await the final summary from the operator
• Prepare an internal accounting document based on this final summary
• Record this liability as a tax-deductible cost at the time of final confirmation

For taxpayers who were already taxed on the positive balance at the time it arose (before the final settlement), the interpretation provides a reference point for verifying previous settlements. They may consider filing a CIT return correction for periods not yet time-barred if they settled differently.

The interpretation also sends a message to the renewable energy sector about the compatibility of the auction system with the income tax structure. It confirms that the legislator, by introducing the auction system as an investment incentive, assumed that the positive balance would be correctly settled for tax purposes as a cost rather than as taxable income.