In recent times, the Polish solar market has experienced significant legislative changes that have both intrigued and concerned investors. The implementation of a price cap has been one of the central discussions within the renewable energy sector. This article aims to explore the recent legislative developments in the Polish solar market, focusing on the price cap, and compare Poland’s solar investment landscape to other Central and Eastern European countries.
The Price Cap in the Polish Solar Market
One of the most notable legislative changes in the Polish solar market has been the introduction of a price cap. This measure was implemented to regulate the prices of electricity generated from solar installations. The main objective behind the price cap was to protect consumers from potential electricity price fluctuations and to ensure more stable energy costs in the long run.
However, the price cap has been a subject of debate among industry stakeholders. Some argue that it may hinder the growth of the solar sector by potentially reducing investor interest due to capped returns. On the other hand, proponents believe that the measure will increase market predictability and contribute to wider renewable energy adoption.
The European Investment Bank recently firmed up a EUR 400 million financing agreement to support the development and modernisation of the Polish distribution network, to furnish the system with investments through 2025. NICL has approached the operators looking for proactive solutions, including the use of battery storage systems, but we haven’t been successful. The challenge is not at the country level but more a regional level.
The trend seems to be that the Polish PV market has accelerated and grown far quicker than the grid operators expected or have been able to keep up with. According to SolarPower Europe’s end-of-year report, Poland installed 4.9GW of solar PV capacity in 2022, the third highest in Europe after market leaders Germany and Spain.
SolarPower Europe said in the report that in November 2019 the country had around 2GW of solar installed; November 2022 saw almost 12GW total capacity!
How Poland compares with other CEE leaders in PV development