Changes in the Polish KPO

The National Plan for Reconstruction and Resilience Enhancement (NIP) is a development plan that sets out goals for rebuilding and building Poland’s socioeconomic resilience after the crisis caused by the COVID-19 pandemic, as well as reforms and investments to implement them. The European Commission recently issued a positive opinion on the revised NIP, which includes an updated chapter on the REPowerEU plan and increases the program’s budget. The revised plan has a total value of 59.8 billion euros (34.5 billion euros in loans and 25.3 billion euros in grants) and provides for 55 reforms and 56 investments.

REPowerEU plan in Polish KPO

The European Commission, in response to the difficulties and disruptions in the global energy market caused by Russia’s invasion of Ukraine, decided in May 2022. The decision to implement the REPowerEU plan. The plan aims to make Europe independent of Russian fossil fuels by saving energy, producing green energy and diversifying supplies. As part of the changes, a chapter on REPowerEU was introduced into the Polish NPO, which consists of seven new reforms, as many new investments and three investments carried over from the original plan (two of which were expanded).

As part of the revised NOP, the chapter on REPowerEU included. proposed by the Government Plenipotentiary for Rural Energy Transformation investments in the construction or modernization of electricity distribution networks in rural areas. This is to enable the connection of new RES sources. Some €972 million have been allocated for such a purpose. Investments in this area will also facilitate the formation of energy cooperatives.

Changes introduced in the Polish KPO

The changes made by Poland in the original plan are due to the need to take into account:

• objective circumstances that make it difficult to implement certain measures in accordance with the original plan, such as the high inflation recorded in 2022 and 2023 and disruptions to the supply chain caused by the war inside Ukraine;
• request for additional loans worth 23 billion euros under the Reconstruction and Resilience Facility (RRF);
• downward adjustments to the maximum RRF subsidy allocation from €23.9 billion to €22.5 billion. This adjustment is due to the June 2022 update of the RRF grant allocation key. and reflects Poland’s better economic performance in 2020 and 2021 than originally anticipated.

Environmental transformation in KPO

The revised plan places a strong emphasis on environmental transformation, with 46.6 percent. of the available funds were allocated to activities supporting climate goals (compared to 42.7 percent in the original plan). The reforms introduced in the NPP include measures to streamline permitting procedures for renewable energy activities, remove barriers to connecting renewable energy sources to the grid, and promote and develop the skills needed for the green transition.

In addition, the plan envisions providing support for energy efficiency in the residential sector and accelerating the phase-out of fossil fuels from home heating, as well as facilitating the development of local energy communities and promoting sustainable mobility. New investments include the development of electricity distribution networks in rural areas, support for the construction and modernization of energy storage systems, the creation of funds: to support the construction of offshore wind farms and to support a wider range of energy transition investments.

Digital transformation in KPO

The changes introduced in the KPO also contribute to the development of digital transformation. Under the plan, 21.3 percent. funds have been allocated for activities including investment in e-services in public administration, digitization of education, development of digital skills and cyber security. The revised plan also added a novelty – supporting the use of cloud technology by businesses.

When will the revised KPO be adopted?

The European Council, after receiving a positive assessment issued by the European Commission, should take a final decision on its approval within four weeks. Approval of the document by the European Council is necessary for Poland to receive advance payments of €5.1 billion in REPowerEU funds.