The Polish power system has reached a turning point. While the energy transition is gaining momentum and technological limitations are no longer an issue, connection capacity has become a problem. The UC84[1] draft law, commonly referred to as the Connections Reform, is the response to this crisis.
This amendment is a fundamental step towards resolving the structural issues within the Polish power system. It is seen as a turning point in operator-investor relations and a breakthrough that will be able to restore fluidity to investment processes in the energy generation and storage sector. One of the overarching goals of this reform is to recover ‘virtual’ megawatts and allocate them to investors who are actually constructing infrastructure.
No more ‘zombie projects’
According to the Ministry’s estimates, implementing the new regulations could unlock up to 150 GW of connection capacity. This is planned to be achieved, among other things, by reviewing connection conditions that have already been issued for projects in the early stages of planning, known as ‘zombie projects’. These are projects by entities which, despite having reserved capacity, have not made any progress with their implementation for a long time. Under the current legal framework, this restricts access to infrastructure for new projects that are ready to go and often more efficient.
What is the most important aspect of the Connections Reform?
The draft law introduces systemic changes to the process of connecting to the power grid in two key areas:
- Streamlining procedures for active investors
- Introducing strict disciplining measures designed to unlock connection capacity
Optimising and streamlining the connection process
The draft proposes a number of solutions aimed at maximising the use of existing infrastructure and reducing administrative barriers. These solutions include:
- Expanding Cable Pooling: opening shared connections to all types of energy generation and storage assets. This would simplify procedures for implementing hybrid projects
- Eliminating the 48-month barrier: eliminating the requirement to complete the connection within four years of the conclusion of the agreement (Article 7(2a) is repealed). This would remove a significant regulatory risk that is often identified as a red flag during due diligence processes
- Reducing documentation: replacing the obligation to attach extracts and excerpts from the local zoning plan (MPZP), land development conditions decisions (WZ) and documents confirming title to the property, by a statement from the investor. Operators (DSOs/TSOs) would only have the right to request these documents if necessary
- Limitations regarding impact assessment: significantly reducing the scope of the required system impact assessment when the issued conditions are modified (e.g. if a new type of plant is added) while the connection capacity remains the same
Disciplining measures and improved grid planning
The draft proposes new financial obligations and strict deadlines to help eliminate capacity blocking by inactive projects. This means:
- New advance payment parameters: an increase from PLN 30 to PLN 60 per kW of connection capacity, with a maximum value of PLN 6,000,000. Importantly, this obligation will also apply to entities that have already obtained connection conditions, who will need to top up the amounts they have paid to reach the new rate
- Non-refundable application fee: the cost of processing an application for determining connection conditions will be PLN 1/kW (up to a maximum of PLN 100,000)
- Mandatory financial security: investors will be required to provide a deposit, guarantee or suretyship of PLN 30/kW for capacities up to 100 MW, or PLN 60/kW for any surplus above 100 MW. The rules for returning these funds are strictly time-related: withdrawal from a project after 36 months from the conclusion of the agreement will result in the total loss of the security
- Shortened validity period of the conditions: from 2 years to 1 year. Additionally, the operator will be entitled to verify the technical conditions again immediately before signing the agreement
- Milestone system: agreements for plants connected to a grid with a voltage above 1 kV (including energy storage facilities) will expire if the investor fails to obtain a final building permit within the specified timeframe. The draft allows for a one-time extension to this deadline if the investor provides justification and documentation confirming the progress of the work, along with additional financial security
The connections reform will not please everyone
The new law introduces mechanisms that will affect every part of the market in some way. Inevitably, not everyone is happy with it.
Representatives of developers argue that the new regulations will negatively affect the dynamics of their business. Among their biggest concerns, they mention:
- Increased entry costs: raising advance payments to PLN 60/kW and the obligation to provide financial guarantees at an early stage will limit financial liquidity, especially for smaller businesses
- Threat to ongoing projects: the risk of losing profitability or even having to discontinue investments at an advanced stage of implementation that will be subject to new requirements retroactively (such as the need to supplement security amounts)
Conversely, entities with an established market position and grid operators highlight the market clean-up benefits of the draft, such as:
- ‘Cleaning up’ the connection portfolio: the proposed financial mechanisms are designed to effectively eliminate applications without genuine capital coverage that, in practice, block capacity
- Verification of investment intentions: thanks to high financial thresholds, connection capacity will go to determined and prepared investors who are ready to build, ultimately freeing up resources for projects that can actually increase Poland’s energy security
The status of legislative work and the need for change
The draft law is currently being debated in Parliament. The Sejm’s debate is particularly intense, which may demonstrate the legislature’s desire to find a ‘golden mean’ – solutions that will remove grid bottlenecks while not stifling the pace of the energy transition.
Despite the controversy surrounding individual financial instruments, the industry agrees on one thing: that reform of the connection system is absolutely necessary.
Maintaining the status quo would lead to further stagnation and prevent the connection of new energy sources. Therefore, it is crucial that the legislative process is handled swiftly, so that investors can operate in a predictable and stable legal environment as soon as possible.
See also: Energy Radar 2026: Your roadmap to energy transition
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[1] Sejm print no. 2150
