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Poland has just rolled out one of Europe’s most ambitious energy storage programmes – a €980 million initiative that’s set to transform the country’s grid infrastructure. The Polish Ministry of Climate and Environment has finalised this landmark subsidy scheme, targeting over 5 GWh of new storage capacity by 2028. The National Fund for Environmental Protection and Water Management (NFOŚiGW) will administer the programme. With applications now open through May 2025, the initiative represents a major step forward in Poland’s renewable energy transition, helping the grid adapt and thrive as the country rapidly scales up solar and wind power.
Poland’s ambitious energy storage push
The programme aims to improve the stability of Poland’s National Energy Network (KSE) and bolster the country’s energy security by supporting the construction of medium to large-scale electricity storage facilities. Eligible projects must have a capacity of at least 2 MW/4 MWh, connected to the distribution and transmission network at all voltage levels.
The scheme has been brewing since 2024, with the final regulation published in the Journal of Laws of the Republic of Poland in March this year. It received European Commission approval, which authorised state aid of €1.2 billion in state aid to support at least 5.4 GWh of new electricity storage facilities. The Supervisory Board of the National Fund for Environmental Protection and Water Management signed off on the final criteria, including one that rewards applicants who commit to not selling the supported project for at least five years after completion.
Growth in renewable capacity drives storage demand
Poland’s shift toward renewable energy has accelerated significantly in recent years, creating an urgent need for energy storage solutions. According to the Energy Market Agency, Poland’s installed solar capacity reached approximately 20.7 GW by the end of November 2024 – a 28% year-on-year increase.
Projections from the Polish transmission system operator PSE’s grid development plan for 2025-2034 are that up to 45 GW of photovoltaics and about 18 GW of offshore wind power could be operating within the next decade, plus additional gigawatts of offshore wind and nuclear capacity. But this dramatic increase in intermittent renewable generation has, of course, heightened the risk of grid imbalances.
As we know, the changing structure of electricity generation creates more chances of oversupply or shortages in the electricity system. Battery energy storage systems (BESS) will soak up surplus electricity during high production periods and release it when generation dips, providing essential grid stabilisation services as Poland moves away from conventional power sources.
Funding and eligibility
The budget is divided between non-returnable grants (€865 million/PLN 3.735 billion) and repayable loans (€96 million/PLN 415 million). The percentage of total investment costs covered by government funding support varies by company size:
- Large enterprises, up to 45%
- Medium-sized enterprises, up to 55%
- Micro and small enterprises: up to 65%
Eligible beneficiaries include businesses registered in Poland, excluding financial sector entities, and eligible investments include:
- Construction of electricity storage facilities (mandatory)
- Connection to the network and associated infrastructure (optional)
- Storage configuration and adaptation (optional)
Application basics
Applicants must demonstrate that without public aid, they would not undertake the investment or would implement it in a significantly limited way. They also need to contribute at least 15% of the costs from their own funds in the form of share capital covered by a cash contribution. Cost-effectiveness is the key evaluation metric, with points awarded as follows:
- 3 points for projects requesting less than €185,000/MWh (PLN 0.8 million/MWh)
- 2 points for projects with costs between €185,000-€347,000/MWh (PLN 0.8-1.5 million/MWh)
- 1 point for projects exceeding €347,000/MWh (PLN 1.5 million/MWh)
Market potential and investment opportunities
The energy storage sector in Poland showed significant momentum even before the launch of this new subsidy programme. Through power market auctions for 2021-2028 and supplementary auctions for 2021-2025, contracts for energy storage with a total capacity of 9.5 GW were already wrapped up. The Polish Economic Institute noted that in December 2024’s power market auction alone, approximately 2.5 GW of storage capacity was contracted – a 44% jump over the 1.7 GW contracted in 2023. This growth trajectory looks set to continue as renewable penetration ramps up and grid stabilisation becomes more critical.
This scheme opens up a real opportunity for developers and investors in Poland’s energy storage market. The generous subsidy rates, particularly for small and medium-sized enterprises, help lower capital barriers and take some risk out of investments. Clear eligibility criteria, significant grant funding, and Poland’s pro-EU policy approach create a welcoming environment for both domestic and international players.
As the country continues its transition away from fossil fuels, investors can expect strong demand for storage technologies and long-term growth prospects in this emerging sector.
