Financing energy projects Basic tips & tricks

 Operational Programme Infrastructure and Environment  16 Regional Operational Programmes  Rural Areas Development Programme Energy projects funding within EU funds in PL 2

 Operational Programmes - National level Renewable energy projects of value over PLN 20 million (approx. EUR 5 million) Energy production including CHP projects of value over PLN 10 million (approx. EUR 2,5 million)  Specific Programme - Rural Areas Development Maximum grant value PLN 3 million (approx. EUR 0,75 million) Projects based in rural areas (rural communities; rural and municipal communities excluding cities over 5 thousand inhabitants; municipal communities below 5 thousand inhabitants) Energy projects funding from EU funds - demarcation

 Operational Programmes - Regional level Renewable energy projects of value below than PLN 20 million (approx. EUR 5 million); minimal project value/ eligible cost depending on the Regional Operational Programmes provisions, e.g. Lower Silesia minimal project value : PLN 300 thousand (approx. EUR 75 thousand) Energy production and CHP projects of value below than PLN 10 million (approx. EUR 2,5 million); minimal project value/ eligible cost depending on the Regional Operational Programmes provisions, e.g. Lower Silesia minimal project value : PLN 500 thousand (approx. EUR 125 thousand) Energy projects funding from EU funds - demarcation

Energy projects funding from EU funds - Regional Aid Map

 Operational Programme for the low-carbon economy, environment protection, prevention of and adaptation to climate change, transport and energy security (national level) - ERDF, CF  Operational Programme for Rural Development (national level, specific programme) - EAFRD  16 Regional Operational Programmes (15 regional programmes for less developed regions, 1 regional programme for transition/ more developed region - Mazovia region) - ERDF, CF Energy projects funding within EU funds in PL 6

Major principles:  Attempt to define one level of intervention for a given investment priority or type of action  Abandon the application of quota criterion causing many problems in a perspective  Apply maximum two distribution criteria simultaneously, e.g. beneficiary, scale of intervention impact Energy projects funding from EU funds - distribution of intervention

 Financial instruments: Non-refundable Grants (low profitability projects) Refundable financing instruments (economically viable projects) Mixed financing instruments (combining non- refundable grants and refundable instruments) Projects funding within EU funds 8

 RES and CHP support system - certificates: Green certificates - renewable energy sources Yellow certificates - CHP units that generate electricity in highly efficient cogeneration fired by gaseous fuels (irrespective of the capacity installed) or with total electrical capacity installed at source below 1 MW Purple certificates - CHP units fired with methane released and captured during underground mining work in active, liquidated or closed down hard coal mines, or with gas obtained from biomass processing, regardless of their capacity installed Red certificates - CHP units with total capacity installed above 1 MW or those fired with fuels other than gaseous fuels, mining methane or biogas from biomass Energy projects - market and regulatory conditions 9

 Factors influencing relatively long project preparation period Environmental impact assessment (report and public consultation procedure) Administrative construction permit reguired also for small units Connecting to distribution network (National Energy Distribution Network) 10 Energy projects - market and regulatory conditions

 Obligation to obtain a concession, from the Energy Regulatory Office, for energy production: Electricity producers whose units’ total installed capacity exceeds 50 MW e Heat producers whose units’ total installed capacity exceeds 5 MW t All CHP units irrespective of their installed capacity All renewable energy generation units regardless of their installed capacity, except of energy production units based on agricultural biogas that require listing into register led by the Agricultural Market Agency  Localisation of renewable energy generation units with installed capacity over 40 kW requires special provisions in local area development plan 11 Energy projects - specific requirements

 Instability of regulatory environment Changes in energy policy in PL: support for renewable energy sources support for CHP production facilitations for small energy generation units (generation power below 40 kW)  Seasonability in EU funds distribution: Distribution based on call of proposals with specified deadlines Prolonged project preparation process vs. relatively short period between announcement of call of proposals and its deadline 12 Energy projects - specific problems

13 Thank you for your attention! INERCON Sp. z o.o. Wiązowa Wrocław Poland Tel