On 29 July 2026, the Sejm held the first reading of a draft amendment to the Renewable Energy Sources Act and certain other acts (Sejm paper no. 2821). The core element of the draft is the introduction of an auction-based support scheme for installations generating biomethane with an installed electrical capacity of more than 1 MW. The draft also provides simplifications regarding direct pipelines, the siting of biogas plants, and the fulfilment of auction obligations by installations using biogas and biomass. It is estimated that the new measures could pave the way for the launch of around 50 new biomethane installations in Poland in the coming years, significantly strengthening the country’s green gas potential.
New auction-based support scheme for biomethane above 1 MW
A key element of the draft is the introduction of a separate, competitive support scheme for installations generating biomethane with an installed electrical capacity of more than 1 MW, which is ultimately intended to operate alongside the existing feed-in premium (FIP) mechanism. Biomethane auctions are to be announced, conducted and concluded by the President of the Energy Regulatory Office (URE), with prior completion of a pre-selection procedure as a condition for participation. In turn, the conditions for biomethane to benefit from the support scheme include: its production from biogas, agricultural biogas or a mixture thereof; compliance with sustainability criteria (KZR); and its first injection into the gas grid only after the auction has closed. Additionally, a condition for selling biomethane under the auction scheme is that it must be produced in a renewable energy installation where the devices used to produce biomethane, installed during construction, were manufactured within the 48 months immediately preceding the date of first biomethane production in that installation and have not previously been depreciated, within the meaning of accounting regulations, by any entity.
Support will be granted in the form of a contract for difference, based on the price offered by the producer in the auction, with reference prices set for two capacity bands of installations. The right to support is to be granted for a maximum of 20 years, with an obligation to start biomethane production within four years of the announcement of the auction results. As in the case of FIP, biomethane receiving support under this scheme will not be eligible for counting towards the National Indicative Target (NCW).
Direct pipeline for biogas and biomethane
Equally important are the assumptions of the draft concerning the rules for construction and operation of such direct pipelines, i.e. pipelines built for the purpose of directly supplying gaseous fuels to a customer’s installation while bypassing the gas system (Article 3(11e) of the Energy Law), where they are used to deliver biogas, agricultural biogas or biomethane. For such pipelines, the draft provides for an exemption from the criteria currently set out in the Energy Law for granting consent to construct a direct pipeline. The President of URE will therefore no longer take into account the level of utilisation of the transmission capacity of the existing gas network or any prior refusal by the operator to provide transmission or distribution services. In practice, this will enable applications for consent without the need to first obtain a refusal of access to the existing network, which should significantly simplify the implementation of such projects. The construction of the pipeline itself will, however, continue to require the consent of the President of URE.
The entity holding legal title to the pipeline will be obliged to notify the President of URE of the start of biogas, agricultural biogas or biomethane deliveries within 30 days. Information on the cessation of operation or decommissioning of the pipeline will have to be submitted within 14 days. Given the variable composition of biogas, the draft also introduces an obligation to ensure compliance with, and measure, the applicable fuel quality parameters. These parameters, together with the method for their measurement and recording, will be set out in a regulation, and failure to meet them will result in the suspension of fuel offtake until the required quality has been restored.
The simplified procedure for obtaining consent to construct direct pipelines may significantly increase their practical availability and strengthen the role of local sales models for biogas and biomethane, particularly to industrial plants, district heating plants and other consumers with a stable demand for gaseous fuel. In this context, a direct pipeline becomes an alternative to costly expansion of the public gas network or transport of the fuel in other forms, facilitating its delivery to consumers located away from the production site, especially where grid injection would be impossible or economically unjustified.
Lower fulfilment threshold for auction bids for biogas and biomass
The draft also provides for a modification of the rules governing the RES auction support scheme with respect to installations generating electricity from biogas or biomass.
Under the current rules, producers are required to achieve a minimum level of sales of the electricity volume declared in the winning auction bid. Failure to meet the required volume may result in financial penalties. For fuel-based sources, however, production levels may depend, among other factors, on the availability and quality of feedstock, technological failures and the course of biological processes.
The draft proposes lowering the minimum threshold for delivery of the electricity volume specified in the auction bid from 85% to 65%. According to the drafters, the limited flexibility of the current rules and the related risk of sanctions discourage participation in auctions or cause producers to subsequently withdraw from the support scheme.
The change should reduce the risk associated with failing to meet declared production levels and increase the attractiveness of auctions for producers using biogas and biomass. It does not, however, remove the obligation to correctly estimate the energy volume at the bid preparation stage, nor does it affect other obligations arising from participation in the support scheme.
The draft also covers other changes in the RES sector
Although the development of the biomethane and biogas market is the main focus of the draft, Sejm paper no. 2821 also introduces a number of changes affecting other segments of the RES market. These include, in particular:
- changes concerning the siting of onshore wind farms, including an explicit regulation of the rules for applying an integrated investment plan (ZPI) to such projects and adjustment of the ZPI procedure to the specific planning and consultation requirements applicable to wind farms;
- exclusion of the capacity of an energy storage facility from the installed capacity of a micro-installation, provided certain conditions are met regarding the capacity ratio and the maximum power injected into the grid;
- clarification of the information to be presented on prosumer invoices and the rules for settling the prosumer deposit following a change of supplier;
- streamlining procedures for the establishment and operation of energy cooperatives;
- an increase in the purchase price under the continuing operational support scheme from 90% to 100% of the reference operational price;
- relaxation of support conditions for modernised RES installations;
- enabling electricity generated and sold during periods of negative prices to be taken into account when complying with obligations arising from RES auctions.
What does the draft mean for businesses?
The adoption of the draft by the Council of Ministers and its referral to the Sejm is a significant milestone for investors developing biomethane projects. The support scheme currently in place for biomethane, modelled on the FIP mechanism, is based on a premium added to the market price and requires a certificate from the President of URE, with a support period of up to 20 years. The new auction-based model may be particularly relevant for investors planning larger biomethane projects, enhancing the predictability of future revenues, providing a basis for securing those revenues over the long term, and facilitating access to financing, including the combination of operational and investment support.
Investors should, however, pay close attention to the access conditions for the system, including the obligation to undergo pre-selection, the requirement to inject biomethane into the gas grid, the rules on cumulation of state aid and the four-year deadline for starting production. The parameters of individual auctions will also be crucial, in particular reference prices, the biomethane volumes covered by support and the segmentation of installations into auction baskets.
For projects geared towards supplies to local off-takers, the new rules on direct pipelines may be of particular relevance. In turn, the extension of the special siting procedure may increase the number of projects that can be developed on the basis of a municipal council resolution.
Producers of electricity from biogas and biomass should analyse the impact of the reduced minimum threshold for fulfilment of auction bids on existing and planned projects. The change may limit exposure to sanctions, especially for installations whose output is sensitive to fluctuations in feedstock availability or disruptions in technological processes.
The current wording of the draft reflects far-reaching changes made in the course of the legislative process, which initially focused on regulations for wind installations. The clear separation of biomethane regulations within the draft is not merely a technical exercise, but also a signal of the direction of regulatory policy. On the one hand, it responds to calls from the industry, which has long pointed to the need to carve out and accelerate work on the legal framework for biomethane, independently of disputes and delays affecting other RES technologies. On the other hand, it may indicate that the development of the biomethane market has been given a separate legislative priority – the draft treats biomethane as a distinct, strategic segment of the energy market, linked both to the transformation of the gas sector and to climate policy and rural development.
In practice, this means a higher likelihood of swift adoption and implementation of measures supporting biomethane, regardless of the pace of work on regulations for other technologies. It is estimated that the amendment (the so‑called Biomethane Act) will contribute to the commissioning of around 50 new biomethane installations in Poland over the next few years, which will not only significantly strengthen the country’s green gas potential and the role of biomethane in the energy mix, but also represent a tangible step towards tapping Poland’s so far underutilised feedstock and agricultural potential in this segment.
Scope of support offered by KPMG Law
KPMG Law offers comprehensive legal support for businesses active in the biogas, biomethane and wider renewable energy markets. We advise both on the preparation and implementation of new investments and on the use of support schemes, project financing and ongoing regulatory matters. Our services include, in particular:
- due diligence of biogas and biomethane projects, including analysis of regulatory, contractual and environmental risks relevant to investment decisions and financing;
- legal support throughout the investment process, including assistance in obtaining the necessary administrative decisions, grid connection conditions for gas and electricity networks, and ensuring project compliance with environmental and construction regulations;
- drafting and negotiation of agreements for the sale of biogas, biomethane and electricity, as well as fuel supply contracts using direct pipelines;
- analysis of producers’ regulatory obligations and representation of clients before the President of URE and other public authorities;
- assessment of the eligibility of installations for support schemes, including preparation for participation in RES auctions and the planned biomethane auctions;
- advice on the rules for combining operational support with investment aid and on the impact of public funding received on settlements within support schemes.
