Budget for green energy and reduction of energy intensity amounts to PLN 62.2 billion
The National Reconstruction Plan (KPO) for green energy and reduction of energy intensity totals 62.2 billion PLN. Thanks to the KPO, offshore wind farms on the Baltic are to become the foundation of the Polish renewable energy sector, the Ministry of Funds and Regional Policy said on Thursday.
The Ministry of Funds and Regional Policy said on Thursday that climate target projects will account for 42.7 per cent of the value of the National Recovery Plan (KPO), which implements the EU Council’s recommendations for Poland in 2019 and 2020. They are included in the KPO, among others, in the programme “Green energy and reduction of energy intensity”. The budget for the grant part is PLN 25.5 billion and for the loan part PLN 36.7 billion.
The MFiPR also indicated that the project implementation will be the responsibility of Ministry of Climate and Environment, Ministry of Infrastructure, Ministry of State Assets, Ministry of Culture and National Heritage, Ministry of Development and Technology, Ministry of Agriculture and Rural Development, Ministry of Funds and Regional Policy.
The ministry also listed the reforms and investments that will be implemented under the project “Green energy and reduction of energy intensity”. These include the amendment of the Law on Energy Efficiency, the reform of the housing financing system, and the update of the National Air Protection Programme.
It added that the government’s Clean Air Programme, launched in 2018, initiated the elimination of the so-called “fossil fuels” and the replacement of heat sources with ecological solutions. The MFiPR pointed out that thanks to the KPO funds in the amount of PLN 14.3 billion, it will be possible to replace an even greater number of heat sources that have a negative impact on air quality. This measure includes the replacement of inefficient sources of space heating and hot water preparation, thermo-modernisation of residential buildings, and installation of photovoltaic panels and solar collectors.
PLN 1.3 billion will be spent on replacement of heat sources and energy thermomodernisation with application of modern installation solutions for educational buildings. Another PLN 0.3 billion will be spent on comprehensive energy modernisation of libraries and cultural centres across the country – calculated the MFF.
It was emphasised that thanks to the NIP, offshore wind farms in the Baltic Sea could become the foundation of the Polish energy sector. It was recalled that already in February 2021, the Act on the Promotion of Electricity Generation in Offshore Wind Farms came into force. It was pointed out that the financial resources reserved for this purpose from the NIP in the amount of almost PLN 15.6 billion clearly show the scale of the undertaking. The 1500 MW capacity planned to be launched by 2026 will be the largest source of renewable energy in Poland – the MFF said.
The ministry assumes that thanks to the NIP funds for green energy and reduction of energy intensity, 33.9 thousand new water supply infrastructure connections will be created, offshore wind farms with a capacity of 1500 MW, 791.2 heat sources in single-family buildings will be replaced, 332 buildings of educational institutions will undergo energy modernization, 320 km of electricity grid will be modernized or built, and 2.5 million hectares of agricultural and forest land will benefit from improved water retention.
The Ministry said that the reforms and investments planned in the NIP are intended to put the Polish economy after the Covid-19 pandemic on a new track of development to meet demographic challenges, climate change and the challenges of creating and using new technologies. The non-returnable funds negotiated with the EC under the NIP amount to PLN 106.9 billion and PLN 51.6 billion in preferential loans – it was noted.