EC approves EUR 5 bn aid for cogeneration in Poland

On Monday, the European Commission approved EUR 5 bn of Polish public aid to companies producing electricity and thermal energy by cogeneration, and discounts to the energy-intensive companies which are financing the programme.

"The approved aid programme will significantly contribute to achieving environmental and climate objectives by the EU without unduly distorting competition. We also have approved plans to preserve the competitiveness of energy-intensive enterprises in Poland by reducing their contributions to financial support for cogeneration," the Commissioner Margrethe Vestager, responsible for the competition policy, said on Monday.

She added that the EC still needs to assess whether in some specific cases the proposed discounts are in line with EU state aid rules.

The aid programme for high-efficiency cogeneration in Poland, that is, the simultaneous generation of electricity and thermal energy, has an annual budget of EUR 500 mln and will last until December 31, 2028.

Support will be granted for the construction of new, and the modernisation of existing, high-efficiency cogeneration plants, as well as for existing high-efficiency cogeneration plants using gas. The programme is financed from the fee charged to electricity consumers based on the level of consumption.