Over PLN 13 billion to support high-efficiency cogeneration in 2020

  • Reading time:3 mins read

May 26 the Ordinance of the Minister of Climate of May 5, 2020 amending the ordinance on the maximum amount and value of electricity from high-efficiency cogeneration covered by support and unit amounts of bonuses guaranteed in 2019 and 2020 entered into force.

The Minister of Climate has set the maximum amount of support that can be given this year to energy producers using high-efficiency cogeneration technology. This year, the maximum amount of electricity from high-efficiency cogeneration whose sales can be covered by the premium is 26.3 TWh, while the maximum value of this bonus is almost PLN 4.9 billion. The individual cogeneration bonus was provided for up to 72 TWh of energy from high-efficiency cogeneration. The value of the individual bonus was set at PLN 8.6 billion.

Support for high-efficiency cogeneration is to reduce adverse environmental phenomena, while ensuring security of heat and electricity supply, it is also to improve the efficiency of using energy carriers. To this end, the Act on the promotion of energy from high-efficiency cogeneration introduced four mechanisms consisting of support in the form of premiums paid to producers for the price of electricity under the following systems:

  1. Auction support system – in the form of a cogeneration bonus for cogeneration units (new and significantly modernized) with an installed electrical capacity of not less than 1 MW and less than 50 MW, which will be won by auctions announced, conducted and settled by the President of the ERO;

2. Support system in the form of a guaranteed bonus (the amount of the bonus is determined by the Minister of Energy in the regulation) for:

  • Cogeneration units (existing and modernized) with an installed electrical capacity of not less than 1 MW and less than 50 MW;
  • Small cogeneration units (new, significantly modernized, existing or modernized) that make up the source with a total installed electrical capacity of less than 1 MW;

3. Support system in the form of an individual guaranteed bonus (the amount of the bonus is determined individually by the decision of the President of the Energy Regulatory Office) for cogeneration units (existing and modernized) with an installed electrical capacity of not less than 50 MW;

4. Support system in the form of recruitment – in the form of an individual cogeneration bonus for cogeneration units (new and significantly modernized) with an installed electrical capacity of not less than 50 MW, which will be won by the calls announced and conducted by the President of the ERO.

Regulation of the Minister of Climate of May 5 this year

ERO messageE