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Poland’s energy law reform to weed out “zombie” projects from the grid queue

Poland’s energy law reform to weed out “zombie” projects from the grid queue

On March 9, 2026, the Polish Senate adopted amendments to the Energy Act aimed at unlocking blocked capacity for connection to the electricity grid, according to an analysis by CMS Law Now. The reform introduces a mechanism for screening out so-called “zombie projects” — unrealized investments that block grid capacity and prevent the connection of mature and ready-to-implement projects.

One of the most significant changes is the introduction of a “milestone mechanism,” which aims to free up blocked network capacity caused by unrealized projects. Under the new provisions, contracts for connection to the grid with a nominal voltage above 1 kV are automatically terminated if the investor fails to prove within a specified period that they have obtained a final building permit.

The law sets different deadlines depending on the type of installation:

  • Photovoltaic installations and electricity storage facilities: 24 months from the date of conclusion of the contract. The investor must prove that they have a building permit covering at least 80% of the installed electrical capacity specified in the contract.
  • Consumption (load) facilities: the same 24-month deadline, but with a threshold of at least 50% of the installed capacity.
  • Wind turbines and installations for the production of electricity from biogas or agricultural biogas: 36 months, with a requirement for a permit covering at least 80% of the installed capacity.
  • Installations related to railway infrastructure: 60 months.

The law allows for an extension of the deadline in circumstances beyond the investor’s control — force majeure, natural disasters, interruptions in supply chains, or delays in administrative procedures. In such cases, the investor may submit a declaration describing the circumstances, accompanied by supporting documentation, requesting an additional period of no more than 24 months. The connecting entity may request a one-time extension of up to 24 months, provided that it justifies the need and submits documents confirming the progress of the investment. For this purpose, additional security in the amount of PLN 60/kW of connection capacity (but not more than PLN 12 million) is required.

Changes in connection fees

Some of the measures to free up network capacity are of a financial nature.

The advance payment for the connection fee has been increased to PLN 60/kW of connected capacity (from the previous PLN 30/kW). Accordingly, the maximum advance payment has been increased to PLN 6 million (from the previous PLN 3 million).

A non-refundable fee has been introduced for reviewing the application for determining the connection conditions: PLN 1/kW of connected capacity, up to a maximum of PLN 100,000. The fee is payable separately for each connection point specified in the application; otherwise, the application will not be reviewed.

The law establishes a mandatory security for the performance of obligations under contracts for connection to the grid with a nominal voltage above 1 kV. The amount is:

  • PLN 30/kW for the part up to 100 MW;
  • PLN 60/kW for the part above 100 MW.

The maximum amount of the security is PLN 12 million. The guarantee must be provided no later than 30 days before the conclusion of the connection contract, otherwise the connection conditions will be canceled. Acceptable forms are a deposit in an interest-bearing bank account, an insurance or bank guarantee, or a guarantee from a parent company within the capital group.

Shortening of the validity period of the conditions for connection

The validity period of the conditions for connection to the electricity network has been significantly shortened – from two years to one year from the date of their provision. The aim is to accelerate the implementation of investments by entities that actually intend to connect to the network and to eliminate capacity blocking by inactive projects.

The law provides for exceptions for railway facilities – validity of two years, and for offshore wind farms and nuclear energy facilities – validity of ten years.

The possibility of re-checking the conditions for connection upon conclusion of the contract has also been introduced. For facilities connected to a network with a voltage above 1 kV, the system operator (transmission or distribution) may refuse to conclude the contract if it finds that the technical and economic conditions are not met.

Simplification of the connection process

The law replaces the previous obligation to submit an extract from the local development plan (or zoning decision) and a document of ownership with a simplified declaration regime. The following shall be attached to the application for determining the conditions for connection:

  • A declaration of the admissibility of the installation in the relevant area in accordance with the local development plan (or zoning decision).
  • A declaration of the applicant’s legal right to use the property on which the investment is planned.

The applicant is not required to have these documents at the time of submitting the application, but the system operator reserves the right to request them additionally. In such a case, the operator shall set a deadline of no less than 21 days for the submission of the documents. The deadline for reviewing the application is suspended until the documents are received or until the specified deadline expires.

The rules for cable bundling or connection sharing are being expanded. Until now, only renewable energy installations could share a connection, but the new rules extend this option to all installations, including electricity storage facilities.

The law also introduces flexible connection agreements in cases of limited grid capacity, giving the operator the right to impose temporary restrictions on electricity consumption or supply (for no more than three years from the completion of the facility).

In addition, configurable connection agreements will be introduced, which may be of indefinite duration and will apply when unrestricted connection is not possible, despite planned network expansion.

Network operators will be required to allow applications for determining the conditions for connection to be submitted electronically with a qualified electronic signature. The possibility of submitting applications in paper format will also be retained.

The application of the new provisions to already issued connection conditions and concluded contracts raises legal uncertainty and is the subject of public debate.

Entities that have received connection conditions valid for at least six months after the entry into force of the law but have not yet concluded a contract have a six-month period to pay or supplement the advance payment. Entities whose applications have not yet been reviewed must supplement the advance payment within 60 days of the law’s entry into force or within 30 days of receiving the terms and conditions. Failure to pay or underpayment within the specified period will result in the loss of validity of the conditions for accession, unreviewed applications will be rejected.

The new mechanism will also apply retroactively. If the contracts were concluded no earlier than 48 months before the law came into force, investors have 30 and 42 months, respectively, to notify the operator that they have received a final building permit. If the contracts were concluded earlier than 48 months before the law came into force, investors have only three months to notify (six months for wind turbines).

The new provisions, with the amendments adopted by the Senate, must now be considered by the lower house (Sejm) of the Polish parliament, after which they will be presented to the president for signing.

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