Rejection of application for connecting a renewable energy system to the grid in Poland – an appeal, connecting the system to the grid on open market terms, and other options

These figures clearly show that the increased pace of the development of renewable energy and the grid infrastructure will take place simultaneously in Poland. This changes the perspective when looking at the problem of rejected grid connection applications. With the planned grid infrastructure investments in mind, the grid operator's rejection of an application for connecting a renewable energy system to the grid does not have to be final. This is because there are legal options that can make the project implementation possible. 

Appealing against the rejection of the grid connection application

Polish law allows appealing against a grid operator’s rejection of the grid connection application. Such a dispute is then decided by the President of the Energy Regulatory Office and that decision can be appealed against to the Competition and Consumer Protection Court, and further to the Court of Appeal. 

Is it worth appealing against a rejected grid connection application? Of course, everything depends on the project specifics, especially in the context of the operator's grid expansion plan. Our clients’ experience shows that it is worth making such a move.

Rejections of grid connection applications are often insufficiently justified. Grid operators sometimes only generally say that there are no appropriate technical or economic conditions enabling the grid connection. Meanwhile, as the President of the Energy Regulatory Office has said, the ‘absence of appropriate technical conditions’ for connecting a system to the grid should be interpreted narrowly, taking into account only technical obstacles of a permanent nature that cannot be removed despite attempts to do so. The operator should therefore demonstrate that there are objective and non-removable obstacles preventing the connection of the system to the grid [3].

For systems with a capacity of over 2 MW, the operator is obliged to carry out an expert study on the impact of the connection on the national electricity system. Importantly, after rejecting a grid connection application, grid operators often do not provide the applicant with the entire expert study but only a summary of its key findings. This significantly limits the applicant’s rights and should be invoked in the dispute before the President of the Energy Regulatory Office. In the proceedings, it is very important to engage specialists and experts who will opine on whether it is actually feasible to connect the system to the grid.

According to the statistics of disputes about rejected grid connection applications, published by the Supreme Audit Office (NIK), the Energy Regulatory Office received 708 applications for resolving a grid connection dispute between 2018 and 2022. A large number of these proceedings are still ongoing. The rejection was upheld in only 35 of them [4]. It is worth noting that, in addition to cases that end in the President of the Energy Regulatory Office ordering concluding the grid connection agreement, there are also cases where the appeal leads to a grid connection agreement signed as a result of negotiations or mediation between the parties, particularly in view of updating the electricity grid expansion plans and of the progressing expansion of the grid infrastructure. Such practices are available and legitimate.

Bringing a dispute before the President of the Energy Regulatory Office is not the only solution to the grid connection problem. It is very important to meticulously check why the grid connection application has been rejected. 

If it is due to economic reasons, the investor should consider connecting the system on open market terms 

What is the connection on open market terms about?  It is about connecting the power producer to the grid on terms other than basic public law rules that force the operator to share the grid connection costs.

It should be emphasised that, according to the 'basic procedure', when connecting a renewable energy system with a capacity of no more than 5 MW or an energy storage facility, the investor pays only half of the actual grid connection costs and the other half is paid by the operator.  The grid expansion necessary to have a power producing system connected may thus be beyond the grid operator’s financial capacities. A recent amendment to the energy law makes this rule more flexible. The grid operator may conclude a grid connection agreement setting an individual grid connection fee, allowing the connected entity to cover the greater part of it. This is what is known as a connection on open market terms.

Connecting a system on open market terms offers another attractive solution where the grid operator may engage the connected entity to build and extend the grid, allowing its system to be connected. In this way, connecting a power station can prove quicker and at the same time more attractive to the grid owner, who, by connecting a new generating system, ensures that a part of the power line is upgraded.

The President of the Energy Regulatory Office sees the potential and appreciates the option of connecting a system on open market terms. In his most recent stance, he clearly indicates that  "operators should give special consideration" to any such initiative [3]. This sends an important signal from the regulator, showing that determined entities willing to more closely collaborate with grid operators have a chance to connect their projects, even if their grid connection application was initially rejected.

If a grid connection application is rejected, it is worth considering also other ways that enable the supply of electricity generated from a renewable energy system. 

First of all, the investor should analyse how the statutory deadlines for connecting a renewable energy system to the electricity grid coincide with the grid expansion plans published by grid operators. Sometimes, grid connection conditions cannot be issued precisely because of strict deadlines for supplying energy under the grid connection agreements, which lapse before the project envisaged in the grid operator's grid expansion plan is to be implemented. 

Based on market observations, it can also be hypothesised that investors will be more likely to have their grid connection application approved if their projects include energy storage that stabilises the production profile. 

Another mechanism to increase the chances of having a renewable energy system connected to the grid is the use of cable pooling, i.e. the sharing of connection infrastructure.  The regulations enabling cable pooling are relatively young and have been in force in Poland since 1 October 2023. They allow using a single electricity connection point to connect several renewable energy systems. This solution is primarily intended for renewable energy systems that are complementary in terms of their energy production profile to enable more stable and efficient energy production. According to preliminary estimates, the introduction of cable pooling into the Polish legal system is expected to ensure the relatively easy connection of at least 5 to 7 GW of additional capacity from solar and wind sources. 

The Polish system allows challenging the rejection of a grid connection application in the case of renewable energy systems. Investors may use solutions such as the appeal and the connection of a renewable energy system on open market terms. It is also important to take steps aimed at increasing the stability of the generation source through cable pooling.  It is worth emphasising that in the light of the government's plans to expand the potential of renewable energy sources in Poland, the rejections of applications for connecting a renewable energy system to the grid undermine the state's energy policy. What is important, therefore, is the determination of investors, who have the instruments to steer operators to make their projects happen. ​