“Energy for the countryside” – Extension of the call for applications

The goal of the Rural Energy program is to increase the use of renewable energy sources in rural and rural-urban municipalities. The deadline for the first call for applications, according to the Ministry of Agriculture and Rural Development website, has been extended to February 29, 2024. Due to high interest, the program’s budget was increased from PLN 100 million to PLN 1 billion. The Rural Energy Program will contribute to the achievement of the national climate and energy framework objectives and the long-term goals of the Paris Agreement.

Beneficiaries of the “Energy for Villages” program.

The Energy for Villages program is designed for:

1. energy cooperative or its member (as defined in the Law on Renewable Energy Sources of February 20, 2015);
2. emerging energy cooperative – a cooperative within the meaning of the Law of September 16, 1982. Cooperative Law or farmers’ cooperatives as defined by the Law of October 4, 2018. on farmers’ cooperatives, the object of which is the generation of electricity, biogas or heat in renewable energy source installations and balancing the demand for them exclusively for own consumption;
3. farmer – a natural person, an unincorporated organizational unit and a legal entity that carries out agricultural activities for at least 12 months:
4. farm within the meaning of the provisions on agricultural tax, located within the framework of homestead development within the meaning of the provisions on the protection of agricultural and forest land or
5. special division of agricultural production.

In the case of an individual, if the RES installation will be used to carry out a business activity in the production of energy from renewable sources, the beneficiary of the program can be a farmer with registered the activity in question.

The scope of funding under the “Energy for the countryside” program.

A farmer who takes advantage of the “Energy for the Countryside” program will be able to subsidize:

• Photovoltaic and wind power installations with a capacity of more than 50 kW, but no more than 1 MW;
• Hydroelectric power plants and agricultural biogas plants with a capacity of more than 10 kW, but no more than 1 MW;
• Energy storage, provided it is integrated with the source being implemented as part of the investment.

An existing energy cooperative, its member or an emerging energy cooperative using the program will be able to subsidize:

• Photovoltaic installations, wind installations, hydroelectric power plants and biogas plants with a capacity of more than 10 kW and no more than 10 MW;
• Energy storage, provided it is integrated with the source being implemented as part of the investment.

Size and forms of funding

The forms of funding under the “Energy for the Countryside” program are:

1. A loan of up to PLN 25 million per beneficiary;
2. A grant of up to PLN 20 million per beneficiary.

Intensity of funding:

• Photovoltaic and wind installations are supported by a loan of up to 100 percent. eligible costs;
• Hydroelectric power plants and biogas plants are supported with subsidies of up to 65 percent. of eligible costs and/or a loan of up to 100 percent. eligible costs;
• Energy storage facilities are supported by subsidies of up to 20 percent. eligible costs.

Due to recent changes made to the “Energy for the Countryside” program, the allocation of the first call for funding applications is PLN 1 billion, including:

• up to 515,000. PLN for funding in the form of a loan;
• Up to 485,000. PLN for funding in the form of grants.

Source of funding for the “Energy for the Countryside” program

The program is implemented by the National Fund for Environmental Protection and Water Management (NFOŚiGW), and its implementation period is 2022-2030. The funding source for the program is the Modernization Fund.

Deadlines and method of submission

The application period began on January 25, 2023. and runs through February 29, 2024. Or until funds are exhausted. Applications must be submitted only electronically through the Grant Application Generator (“GWD”) and using the signature referred to in § 2 paragraph. 4 of the Regulations on the call for applications for investment funding from the National Fund for Environmental Protection and Water Management. The deadline for submission of an application is determined by the date on which it is sent by the GWD to the NFOŚiGW’s inbox located on the Electronic Platform for Public Administration Services (ePUAP). Applications received after the deadline or in the wrong form will be rejected. Applicants will be informed of the outcome of the evaluation by a separate letter.