1. Primary Energy Efficiency Law

In October 2016, the Energy Efficiency Bill (Journal of Laws 2016 Item 831) entered into force. The Energy Efficiency Bill ("Bill") transposes into national legislation Directive 2012/27/EU regarding energy efficiency, amending the Directives 2009/125/EC and 2010/30/EU, and repeals Directives 2004/8/EC and 2006/32/EC.

The main purpose of the Bill is to regulate the development of national legislation and set out guidelines which will allow Poland to achieve the goal of energy efficiency as established by EU law.

Comparison

The Bill fully transposes Directive 2012/27/EU into national law. According to Article 1 of the Bill, it regulates: (i) principles for the development of the national action plan on energy efficiency; (ii) tasks of the public sector in energy efficiency; (iii) rules for implementing the obligation to obtain energy savings; and (iv) procedures for conducting an energy audit of a company.

Under obligations derived from Directive 2006/32/EC of the European Parliament and Council of 5 April 2006 on energy end-use efficiency and energy services and repealing Council Directive 93/76/EEC, Poland has introduced the following Action Plans:

The first National Energy Efficiency Action Plan of 2007 ("NEEAP") fulfilled the provisions of Article 14(2) of Directive 2006/32/EC of the European Parliament and Council of 5 April 2006 on energy end-use efficiency and energy services. The funds and measures proposed under the first NEEAP were aimed at achieving the target for energy savings as required by Directive 2006/32/EC, (i.e. nine percent (9%), in 2016 and achieving an intermediate target of two percent (2%) in 2010). The estimated value of the target for Poland amounted to 53,452 GWh, with electricity intended to constitute sixteen percent (16%) of this value.

The second National Action Plan of 2011 on energy efficiency has been prepared in connection with the transmission of the European Commission's reports under the Directive on energy end-use efficiency and energy services 2006/32/EC and the Directive on the Energy Performance of Buildings 2010/31/EC. This document contained a description of the planned energy efficiency improvement measures aimed at final energy use in various sectors of the economy. The second National Action Plan also provided information on the progress of the national target for efficient energy management and actions taken to remove obstacles to achieving this goal. In 2010, Poland's energy consumption savings amounted to 35,320 GWh in total. Savings in the household sector amounted to 13,816 GWh, in industry 11,851 GWh, and in the services sector 9,653 GWh.

The third National Energy Efficiency Action Plan of 2014 was prepared pursuant to Article 6(1) of the Act of 15 April 2011 on energy efficiency and in accordance with Article 24(2) and Annex XIV of Directive 2012/27/EU. The third National Action Plan included a description of measures intended to improve energy efficiency, focusing on energy end-use efficiency by sectors, and calculations concerning energy end-use savings achieved in 2008-2012 and expected in 2016, as required by Directive 2006/32/EC.

All three National Energy Efficiency Action Plans introduced a selection of Programmes in the residential sector, the services sector, the transport sector and in the industry sector, all aimed at improving energy efficiency in Poland.

Thermomodernisation and Repairs Fund

The programme was first introduced by the First National Plan and has been continuously ongoing since 2007. This is a systemic measure and there are no provisions providing a fixed time framework. The objective of the programme is financial aid for investors who implement projects involving thermomodernisation, repairs, and renovation of individual houses, using credit obtained from commercial banks.

The programme was first introduced by the First National Plan and has been continuously ongoing since 2007. This is a systemic measure and there are no provisions providing a fixed time framework. The objective of the programme is financial aid for investors who implement projects involving thermomodernisation, repairs, and renovation of individual houses, using credit obtained from commercial banks.

The programme covers actions aimed at:

-improvements which result in a reduction in demand for energy delivered for heating and service water heating purposes;

-improvements which result in reducing primary energy losses in local heating grids and local heat sources;

-building a technical connection to a centralised heating source to be used instead of a local heating source which results in a reduction in the cost of acquiring heat; and

-a complete or partial change of energy sources to renewable sources or using high-efficiency cogeneration.

Bank Gospodarstwa Krajowego (National Economy Bank) is the main funding body, The Thermomodernisation programme operates on the basis of bonuses that are granted to investors who fulfil certain requirements. To obtain a thermomodernisation bonus the investor must take a loan from a commercial bank for the investment. The amount of the thermomodernisation bonus equals twenty percent (20%) of the amount of loan for the investment but not more than the lesser of (i) sixteen percent (16%) of the expenses incurred for the thermomodernisation investment, and (ii) twice the amount of expected annual energy savings, assessed on the basis of an energy audit. In the years 2007 to 2013 more than 20,000 thermomodernisation bonuses were granted, for a total amount of PLN 1 billion (approximately EUR 225 million).

Operational Programme Infrastructure and Environment for 2007-2013, Urban transport in metropolitan areas and Development of intelligent transport systems

The objective of the programme was to make the traffic management system more efficient by applying Intelligent Transport Systems in road, maritime, inland water and urban transport, to improve the inter- modal system and logistics, to purchase new vehicles, mainly city buses, and to promote eco-driving among vehicle users, contributing to a reduction of energy use for transport purposes. It lasted from 2007 until 2014 and EUR 2.89 billion of its funding came from contributions from the EU Cohesion Fund and EUR 524.6 million came from national public contributions (the funds of municipalities and towns).

Energy efficiency certificates scheme (white certificates)

The energy efficiency obligation scheme was introduced pursuant to the Act of 15 April 2011 on energy efficiency ("Act"), The Act was the regulation in effect prior to Directive 2012/27/EU and in accordance with the Act, the scheme was to operate from 1 January 2013 until 31 December 2016. Currently, due to the implementation of the Directive into national law, the Act will remain effective until 2020.

The programme imposes an obligation on entities selling electric power, heat, and natural gas to either obtain certificates of energy efficiency (white certificates) and submit them for redemption to the President of the Energy Regulatory Office, or to pay a substitution fee.

The objective of the programme is to support a mechanism for measures aimed at improving energy efficiency of the economy, increasing energy savings by end-users and by facilities using energy for their own needs, and reducing losses of electricity, heat and natural gas in transmission or distribution. The implementing body is the President of the Energy Regulatory Office who has approximately PLN 0.7 million (approximately EUR 170,000) per year of funding for the programme at his disposal.

Comparison

Through the last Third National Energy Efficiency Action Plan of 2014, Poland pledged to make significant progress in the implementation of the national target for efficient energy management, (i.e. towards achieving by 2016 a minimum final energy savings of nine percent (9%) of the 2001-2005 national average consumption). As a result of GDP growth being higher than the growth rate of energy consumption, primary and end-use energy consumption has generally decreased, with the exception of 2010. In the years 2006 to 2009, the rate of improvement exceeded five percent (5%) in the case of the primary energy consumption and almost four percent (4%) in the case of end-use energy.

The Bill modified previously introduced regulations that were supposed to ensure the reduction of energy usage to the amount required by Directive 2012/27/EU.

Energy efficiency certificates scheme (white certificates)

White certificates are certificates attesting to the saving of a certain amount of energy as a result of investments to improve energy efficiency. White certificates have property rights and are traded on a Power Exchange.

The obligation imposed on entities selling electric power, heat, and natural gas to final consumers is the need to:

-implement a project to improve energy efficiency for the final consumer, or

-obtain/purchase white certificates which they then submit for redemption to the President of the Energy Regulatory Office.

In special cases, the obligation may be settled with a replacement fee, but this method will be gradually eliminated. In 2016 only thirty percent (30%) of required energy savings were able to be settled by a replacement fee, then gradually to be reduced to twenty percent (20%) in 2017 and ten percent (10%) in 2018.

To obtain white certificates, an application for a certificate of energy efficiency combined with an energy efficiency audit should be submitted to the President of the Energy Regulatory Office.

Energy Audit

According to the Bill, energy audits of an enterprise are intended to cover detailed and validated calculations for the proposed measures which are designed to improve energy efficiency, and to provide information on potential energy savings.

An energy audit is to be carried out by an independent entity which has knowledge and professional experience in performing this type of audit. If the energy audit of an enterprise is carried out by experts from the audited enterprise, they may not be directly involved in auditing the other activities of that enterprise.

The requirement to carry out an audit applies to entrepreneurs who in at least one of the prior two (2) fiscal years:

-employed on average not less than 250 employees, or

-achieved an annual net turnover from the sale of goods, products, services and financial transactions exceeding the PLN equivalent of EUR 50 million and/or the total assets of their balance sheet at the end of one of those years exceeded the PLN equivalent of EUR 43 million.

An entrepreneur is released from this obligation if it:

-owns an energy management system specified in the Polish Standard PN-EN ISO 50001 on energy management systems, requirements and recommendations of use; or

-owns an environmental management system, referred to in Article 2 Section 13 of the Regulation of the European Parliament and Council Regulation (EC) No. 1221/2009 of 25 November 2009 on the voluntary participation by organisations in a Community eco-management and audit scheme (EMAS); and

-proves that under one of those schemes an energy audit of the company was conducted.

The Third National Action Plan of 2014

The Third National Action Plan is the first plan that was drafted on the basis of Directive 2012/27/EU. It was prepared in order to continue measures taken in accordance with Directive 2006/32/EC of the European Parliament and Council of 5 April 2006 on energy end-use efficiency and energy services and repealing Council Directive 93/76/EEC.

The following assumptions were taken into account for the National Action Plan:

-the policy aimed at increasing energy efficiency of the economy will be continued, resulting in reducing energy consumption;

-the envisaged measures will be based as much as possible on market mechanisms, and budget funding will be limited to a minimum; and

-the objectives will be achieved following the principle of minimum cost, that is the national potential for energy efficiency will be achieved by maximising the use of existing mechanisms and organisational infrastructure.

The Third National Action Plan, which was adopted by the Council of Ministers on 20 October 2014, prepared more than 20 programmes divided into five sectors: services sector, residential sector, public sector, industry sector and transportation sector.

Comparison

Poland has introduced White Certificate programmes as well as energy audits in order to ensure that entrepreneurs and energy companies comply to achieve a goal of at least one point five percent (1.5%) of energy reduction every year. The Bill includes guidelines for large companies on how to efficiently adopt provisions set out by the Directive and how to ensure energy efficiency in all aspects of the energy industry.

The terms for carrying out energy audits are set out in the Bill. According to the provisions of the Bill, entrepreneurs within the meaning of the Act of 2 July 2004 on the Freedom of Economic Activity (Journal of Laws of 2013 Item 672, as amended 23), with the exception of those running small and medium-sized enterprises within the meaning of Articles 104 to 106 of that Act, are obliged to carry out, (if this is economically justifiable), an energy audit every four (4) years, or to have such an audit performed.

Enterprises that are implementing an energy or environmental management system in compliance with the relevant European Standards are exempted from this requirement. An energy audit must be carried out by an independent entity which has knowledge and professional experience in performing this type of audit. If the energy audit of an enterprise is carried out by experts from the audited enterprise, they may not be directly involved in auditing the other activities of that enterprise. Energy audits of an enterprise must cover detailed and validated calculations for the proposed measures which are designed to improve energy efficiency, and to provide information on potential energy savings.

An energy audit of an enterprise:

-must be carried out on the basis of up-to-date, measured, and traceable data on energy consumption and, for electricity, load profiles;

-should comprise a detailed review of the energy consumption profile of buildings or groups of buildings, in industrial installations, and in transportation; and

-should be based, whenever possible, upon life-cycle cost analysis (LCCA) instead of Simple Payback Periods (SPP) in order to take into account  long-term savings, residual values of long-term investments and discount rates.

Comparison

Due to the recent adoption of Directive 2012/27/EU into the Polish legal system in the form of the Bill in October 2016, Poland is still in the process of preparing a new National Energy Efficiency Action Plan which will set guidelines and regulations for energy audits. Specifically, the Bill requires that every three (3) years, the Minister for Energy Efficiency must prepare a National Plan until 31 January and then the Council of Ministers passes the Plan as a resolution. Once the Plan is passed, it is forwarded to the European Council, by no later than 30 April of that same year. Since the last Plan was passed in 2014, the New National Plan should have been prepared by the Minister until 31 January 2017 and thereafter passed and in effect by 30 April 2017. However, as of the date of publication of this Guide, the Minister has advised that the New National Plan will probably not be prepared until the end of March 2017.

Strategies dealing with energy efficiency were introduced in Poland over a period of years as part of the National Energy Efficiency Action Plans.

Measures in respect of energy efficiency of buildings

Green Investment Scheme – Energy management in public utility facilities

Thermomodernisation of public utility facilities, including equipping facilities with appliances of the highest, economically justified energy efficiency standards, directly related to the thermomodernisation of the facilities, in particular:

-insulation of buildings;

-replacement of windows;

-replacement of external doors;

-alterations in the heating system (including changing the source of heat);

-replacement of ventilation and air conditioning systems;

-preparation of technical documentation for the investment;

-the use of energy management systems in buildings;

-the use of technologies of renewable energy sources; and

-replacement of internal lighting by an energy efficient one (as additional work performed together with thermomodernisation).

Energy efficiency measures in public institutions

Operational Programme PL04 – "Energy savings and promotion of renewable energy sources" under the EEA Financial Mechanism in 2009-2014 (c 5 – energy efficiency, and area No. 6 – renewable energy).

The objective of the programme is to reduce emissions of greenhouse gases and air pollution, and to increase the share of energy originating from renewable sources in the total balance of energy use. Thermomodernisation of public utility buildings is necessary to achieve a lower consumption level for electricity necessary for use in buildings. Examples include modernisation or replacement of existing energy sources (together with replacement or renovation of outdated local networks); supplying public utility buildings with modern, energy efficient and ecological sources of heat or electricity with a nominal rating up to 5 MW, including: those originating from renewable energy sources or from heat and electricity sources generated in a combined manner (cogeneration/three-generation). Another example is the installation, modernisation, or replacement of district heating with a total nominal rating of up to 3 MW and using it to supply public utility buildings.

Energy efficiency measures in industry and SMEs

Support for operators with regards to low-emissions and resource saving business and the increase of energy efficiency.

The objective of the programme is to increase the energy efficiency of enterprises. It will consist of investment measures, covering the support mechanism and leading to an efficient use of energy, or to measurable energy savings. Investment measures accessing co-financing must be based upon the recommendations of an energy audit, where the energy effect may not be lower than seven percent (7%).

The material scope of investments will include:

Implementation of energy management systems and quality management systems and implementation of management of electrical energy grids in business facilities. Technologies providing rationalisation of the use of electricity by means of:

-energy efficient drive systems;

-drive control systems;

-energy efficient engines;

-inverters for pumps and fans;

-energy efficient compressors and compressor control systems;

-internal energy transmission grids, including limiting passive power flows;

-energy efficient lighting systems;

-network drive rectifiers; and

-higher efficiency transformers in local electric energy systems and internal distribution networks.

Technologies providing rationalisation of the use of heat by means of:

-insulation and dewatering of steam systems;

-renewable energy sources, including geothermal systems, solar collectors, heat pumps;

-thermomodernisation of industrial and office buildings;

-recuperation and heat recovery from processes and devices;

-modernisation of internal heating networks;

-using energy from waste generated in industrial processes; and

-construction/modernisation of internal energy sources, including cogeneration.

Energy efficiency measures in transport

The Operational Programme Infrastructure and Environment 2014-2020

The objective of interventions in the operational programme will be the development and greater use of low-emission urban transport, serving the inhabitants of functional areas of cities.

Programme actions:

-infrastructural investments: adaptation, construction, reconstruction, development of the urban transport network (linear infrastructure), including rail systems, road system, energy network and tramway sub- stations, construction, reconstruction, and development of hubs;

-investments concerning rolling-stock: purchase, modernisation of rolling stock (trams) and bus fleets, together with the necessary infrastructure for  maintenance (e.g. technical support for servicing and maintenance of the bus fleet, places and facilities for refuelling with alternative fuel);

-comprehensive investments covering infrastructural elements and bus fleets;

-arrangements in the area of ITS, improving the functioning of public transport, as elements of an infrastructural, fleet-related, comprehensive project, including: light signalling systems, activated by buses, trams, ticket distribution and identification systems, satellite navigation systems for improved traffic efficiency and increased safety of public transport, information systems for travellers – electronic bulletin boards, including on-line systems, security monitoring systems, installed at stops, platforms, stations, hubs, parking lots, and on-board carriages or vehicles; and

-preparatory work for investments under the measure. The possibility to implement projects integrating the above-mentioned types of projects.

Efficiency in energy generation and supplies

The Operational Programme Infrastructure and Environment 2014-2020 (Investment Priority 4.v). Promoting low-emissions strategies for all kinds of territories, in particular for urban areas, including support for sustainable multi-modal urban mobility and adaptive measures with mitigating influence on climate changes, by reduction of losses in the heat/cold distribution process in order to ensure an "efficient heating and cooling system".

Programme actions:

-construction, development, or reconstruction of heating and cooling networks which, following the implementation of the project, will meet the requirements of an "efficient heating and cooling system", in order to connect new customers to the network; and

-modernisation of heating/cooling networks to reduce energy losses in the heat distribution process, also through the implementation of heat and cold management systems, together with the supporting infrastructure.

Comparison

Poland chose to address several sectors in which, (in its national view), energy efficiency is in most demand. All of these actions have led to a strategy of achieving energy efficient targets. Programmes are carried out according to the Directive and aimed at fulfilling long-term strategies, including renovations of buildings in the both the private and public sectors.

Poland, like other Member States of the European Union, is under the obligation to transpose EU Directives into national legislation and to fulfil the requirements imposed by EU regulations.

Energy Efficiency Bill 2011

Introduction of the Bill in 2011 allowed Poland to fully transpose provisions of Directive 2006/32/EC of the European Parliament and of the Council of 5 April 2006 on energy end-use efficiency and energy services, repealing Council Directive 93/76/EEC, into Polish law.

Energy Law Act

Amendments made on 11 September 2013 to the 1997 Energy Law Act introduced resolutions of Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources, and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC, into Polish law.

Energy Efficiency Bill 2014

Repealing the 2011 Energy Efficiency Bill and introduction of a new Energy Efficiency Bill in 2016 consequently brought in regulations of Directive 2012/27/EU of the European Parliament and of the Council of 25 October 2012 on energy efficiency, amending Directives 2009/125/EC and 2010/30/EU and repealing Directives 2004/8/EC and 2006/32/EC.

By adopting all the relevant EU law that was introduced in the form of Directives, Poland has ensured that it is up to date with all ongoing procedures that lead to energy efficiency, and to consequently fulfil its obligations as a Member State. It has introduced strategies and legislation which launched a number of programmes financed by European funds and State budgets.

Comparison

The 2012/27/EU Directive establishes an indicative target of at least twenty percent (20%) energy efficiency for each Member State. Poland, in the Third National Action Plan of 2014, declared the adoption of a standard programme for implementation, i.e. one point five percent (1.5%) annually until 2020, which is a total of ten point five percent (10.5%), in accordance with Article 7(1) of Directive 2012/27/EU which corresponds to end-use energy savings by 2020 amounting to 3.675 Mtoe.

2. Specific Provisions of the Law

3. Obligations

4. Mandatory Audit of Large Industry

5. Strategies

6. Targets

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