POLAND Trends and Developments Contributed by: Tomasz Młodawski, Krzysztof Cichocki, Łukasz Wyszomirski and Krzysztof Fasula, Sołtysiński Kawecki & Szlęzak
The distribution networks Electricity is delivered to end users through distribu- tion networks operated by a number of distribution system operators (DSOs), with five major DSOs being responsible for the development and operation of grids within specific geographical territories. The larg- est DSOs are subsidiaries of state-controlled energy groups but are required by law to operate indepen- dently from the generation and supply arms of their parent companies. The rapid growth of distributed generation has placed distribution networks under considerable strain. Pow- er now frequently flows in both directions as small- scale generators feed surplus electricity back into the local grid, creating voltage fluctuations and conges- tions. In response, DSOs are investing in network rein- forcement, digitalisation and smart grid technologies. Network access and tariff regulation remain central issues for market participants. Connection charges, network usage fees and cost allocation, as well as grid development, are all determined within a regulated framework overseen by an energy regulator. Recent legislative changes, including the introduction of deep connection charges and flexible connection agree- ments, apply across both the transmission and distri- bution levels, and are intended to ensure that network development costs are shared more equitably. Taken together, the transmission and distribution net- works represent one of the largest areas of required capital expenditure in Poland’s energy transition. Without timely investment in grid infrastructure, the country’s targets for renewable energy deployment, nuclear construction and coal phase-out risk being delayed. For developers, investors and service provid- ers, the modernisation of Poland’s electricity networks presents both a challenge and a significant commer- cial opportunity. Conclusion Poland’s energy sector is undergoing a massive trans- formation, as a system that was long dominated by coal is giving way to a diversified generation mix built around offshore wind, nuclear power, solar energy, battery storage and modern gas-fired capacity. The
generation investments within areas with limited pow- er demand. Apart from the above, Poland is at the edge of full implementation of a central system for the acquisition and management of power metering data. This is a critical piece of infrastructure that will enable smarter management of the grid, accelerating procedures for a switch of supplier and allowing new types of energy service to develop. Transmission and Distribution Poland’s electricity network consists of two layers: • the extra-high voltage transmission system; and • the distribution networks encompassing high, medium and low voltage grids. Both operate under separate regulatory regimes and face significant pressure to modernise as the gen- eration mix shifts towards renewable and low-carbon sources. The transmission system The national transmission grid is owned and oper- ated by PSE S.A., a state-owned company that holds the exclusive licence to operate the transmission sys- tem. PSE is responsible for maintaining the security and reliability of the high voltage network, managing cross-border interconnections, and balancing supply and demand in real time. As the sole transmission system operator, PSE also co-ordinates the connec- tion of new generation capacity to the national grid. The transmission network was originally designed around large coal-fired power stations in the south of Poland. The shift towards offshore wind on the Bal- tic coast, dispersed solar installations and a planned nuclear plant on the northern seaboard requires fun- damental grid reconfiguration. Cross-border inter- connections are also gaining importance: Poland is connected to Germany, the Czech Republic, Slovakia, Lithuania, Sweden and Ukraine, and several projects to increase interconnection capacity are underway, supported in part by EU funding. All investments in the transmission grid are carried out based on the ten-year network development plans developed by the TSO and agreed with the regulator.
283 CHAMBERS.COM
Powered by FlippingBook