Following a public consultation initiated in July 2024, Poland's Ministry of Climate and Environment has officially approved a subsidy program aimed at expanding the country’s energy storage capacity by more than 5 GWh.

The finalized regulation, published in the Journal of Laws on March 7, sets the groundwork for the National Fund for Environmental Protection and Water Management to launch the long-anticipated financial support scheme. The program is expected to begin by the end of the first quarter or early in the second quarter of 2025.

With a total budget of PLN 4 billion, the initiative will provide PLN 3.6 billion in grants and PLN 400 million in loans. The funding will be sourced from the EU’s Modernization Fund and the post-COVID Recovery and Resilience Facility, following the European Commission’s approval of Poland’s Recovery and Resilience Plan.

In October 2024, the European Commission greenlit the scheme with a budget of €1.2 billion, targeting at least 5.4 GWh of new energy storage capacity. The program will finance projects with a minimum power output of 2 MW and a storage capacity of at least 4 MWh, connected to medium- or high-voltage grids.

Only newly constructed storage systems will qualify, though facilities awarded a capacity market contract and launched after March 2023 may also apply. However, projects receiving investment aid through this scheme will see a corresponding reduction in remuneration for meeting capacity obligations due to public funding accumulation rules.

The financial assistance will be available in the form of non-repayable grants and repayable loans. The combined support cannot exceed 45% of the total investment cost, though medium-sized businesses may receive up to 55%, while small companies could be eligible for 65%. Loans may cover up to 100% of eligible costs.

To qualify, all contracts must be finalized by December 31, 2025, and projects must be operational by December 31, 2028. Delays will result in financial penalties—aid will be reduced by 5% per month for delays of three to six months, and 10% per month for any additional delays beyond that period.

This initiative marks a significant step in strengthening Poland’s energy storage infrastructure, reinforcing its commitment to energy security and the clean energy transition.