Commission approves €1.2 billion Polish State aid scheme to support investments in strategic sectors to foster the transition to a net-zero economy

This article is brought to you in association with the European Commission.

The European Commission has approved an around €1.2 billion (PLN 5 billion) Polish scheme to support investments in strategic sectors to foster the transition towards a net-zero economy. The scheme was approved under the State aid Temporary Crisis and Transition Framework (‘TCTF’) adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and on 2 May 2024.

The Polish measure

Poland notified to the Commission, under the TCTF, an around € 1.2 billion (PLN 5 billion) scheme to support investments in strategic sectors to foster the transition towards a net-zero economy.

Under the scheme, the aid will take form of direct grants. The measure will be open to companies producing relevant equipment, namely batteries, solar panels, wind turbines, heat-pumps, electrolysers, equipment for carbon capture usage and storage, as well as key components designed and primarily used as direct input for the production of such equipment or related critical raw materials necessary for their production.

The Commission found that the Polish scheme is in line with the conditions set out in the TCTF. In particular, the scheme (i) will incentivise the production of relevant equipment for the transition towards a net-zero economy; (ii) will respect the maximum aid ceilings; and (iii) will be granted no later than 31 December 2025.

The Commission concluded that the Polish scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities, which are of importance for the implementation of the Green Deal Industrial Plan, in line with Article 107(3)(c) Treaty on the Functioning of the EU and the conditions set out in the TCTF.

On this basis, the Commission approved the aid measure under EU State aid rules.

Background

On 9 March 2023, the Commission adopted the TCTF to foster support measures in sectors which are key for the transition to a net-zero economy, in line with the Green Deal Industrial Plan.

The TCTF provides for the following types of aid, which can be granted by Member States until 31 December 2025 in order to accelerate the green transition:

• Measures accelerating the rollout of renewable energy (section 2.5). Member States can set up schemes for investments in all renewable energy sources, with simplified tender procedures.
• Measures facilitating the decarbonisation of industrial processes (section 2.6). Member States can support investments in the decarbonisation of industrial activities with a view to reduce dependency on imported fossil fuels, in particular through electrification, energy efficiency and the switch to the use of renewable and electricity-based hydrogen which complies with certain conditions, with expanded possibilities to support the decarbonisation of industrial processes switching to hydrogen-derived fuels.
• Measures to further accelerate investments in key sectors for the transition towards a net-zero economy (section 2.8). Member States can grant investment support for the manufacturing of strategic equipment (namely batteries, solar panels, wind turbines, heat-pumps, electrolysers and carbon capture usage and storage), as well as for production of key components and for production and recycling of related critical raw materials. Support is capped at a certain percentage of the investment costs up to specific amounts, depending on the location of the investment and the size of the beneficiary. Higher support is possible for small and medium-sized companies, as well as companies located in disadvantaged regions to ensure that cohesion objectives are duly taken into account. Furthermore, in exceptional cases, Member States may provide higher support to individual companies, where there is a real risk of investments being diverted away from Europe, subject to a number of safeguards.

More information on the TCTF can be found here.

The non-confidential version of today’s decision will be made available under the case number SA.109581 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.

Quote(s)

Today, we have approved a € 1.2 billion Polish measure to support investments in strategic equipment, namely batteries, solar panels, heat-pumps, wind turbines, electrolysers and carbon-capture usage and storage. This will help accelerate the transition to a net-zero economy, in line with the objectives of the Green Deal Industrial Plan and the EU’s climate neutrality target. At the same time, competition distortions remain limited.

Margrethe Vestager, Executive Vice-President in charge of competition policy