Poland Launches Energy For The Countryside Program

• Poland has announced PLN 1 billion scheme to promote renewable energy and storage in the rural and rural-urban regions
• Energy for the Countryside will be open to farmers and energy cooperatives to seek loans or grants for their installations
• Initial call will be opened on January 25, 2023 with a budget of PLN 100 million, followed by more calls till December 15, 2023

Poland has launched a new state aid program called Energia dla wsi or Energy for the Countryside to award PLN 1 billion ($230 million) to encourage the use of renewable energy resources, including solar, with energy storage in rural and rural-urban communes.

The 1^st call will be launched on January 25, 2023 with an initial budget of PLN 100 million ($23 million), and subsequent calls will be issued till December 15, 2023.

Aid will be available either as a grant or loan for farmers and energy cooperatives to secure part of the finance required for renewable energy installations. Applicants can apply for subsidy with a maximum value of PLN 20 million ($4.6 million), while loans can be sought for up to PLN 25 million ($5.7 million).

For PV installations or wind turbines, a loan of up to 100% of eligible costs can be applied for, while for biogas and hydropower plants, it is possible to apply for a subsidy of up to 65% of eligible costs.

Funds for the Polish program will come from the European Union (EU) Modernization Fund, set up to support 10 member states to meet their 2030 energy targets and part of the European Green Deal Investment Plan. More about the Energia dla wsi program is available on the Polish government website.

"We want RES investments in rural areas to have a local dimension, use locally available resources and meet local needs," said Poland's Minister of Climate and Environment Anna Moscow.

The program was prepared by Poland's Ministry of Agriculture and Rural Development increase generation of renewable energy in the countryside while opening up a means of additional income for farmers and reducing energy costs for locals that have shot up in the wake of Russian invasion of Ukraine, added Deputy Prime Minister Henryk Kowalczyk.

"The program is an opportunity for a significant energy transformation in rural areas. We want it to run in a sustainable manner – without limiting the development of agricultural production and food production," added Moscow.

Poland was among the top 3 solar markets in the EU in 2022 with an estimated 4.9 GW installed last year, according to the SolarPower Europe's EU Market Outlook for Solar Power 2022-2026 (see European Union To Exit 2022 With Over 41 GW Solar Installed).