The second call for applications is underway under the priority program “Cogeneration for Energy and Industry” announced by the National Fund for Environmental Protection and Water Management. This is the largest support program for the cogeneration sector in Poland, with a budget of up to PLN 3.5 billion. The program aims to promote the use of high-efficiency cogeneration for industry and represents a significant step toward modernizing Polish energy.
Program Objectives and Significance
The “Cogeneration for Energy and Industry” program is part of Poland’s energy transformation strategy and complies with EU legislation, including Directive 2003/87/EC and Commission Implementing Regulation (EU) 2020/1001 on the Modernisation Fund. Its implementation will contribute to achieving climate and energy targets set at the national level and long-term goals contained in the Paris Agreement.
Cogeneration, which is the simultaneous production of electricity and heat in one technological process, allows for a significant increase in energy efficiency compared to traditional energy production in separate sources. Thanks to this, the technology plays a key role in reducing CO2 emissions and saving primary energy.
Ambitious Program Goals
The program assumes achieving impressive indicators:
• Additional energy generation capacity: at least 1,300 MW of power in high-efficiency cogeneration
• Number of installations: at least 130 new cogeneration units
• CO2 emissions reduction: at least 5.6 million tons of CO2 annually
• Primary energy savings: at least 16.8 million GJ annually
These figures show the scale of the planned transformation – the program could contribute to emissions reductions comparable to taking approximately 2.4 million passenger cars off the road annually.
Budget and Financing Forms
The program has a budget of up to PLN 3.5 billion, divided into:
• PLN 2 billion for grants (non-repayable form)
• PLN 1.5 billion for loans (repayable form)
Beneficiaries can receive co-financing in the form of:
• Grants up to 50% of eligible costs
• Loans up to 100% of eligible costs on preferential terms (WIBOR 3M + 50 bp, minimum 1.5% annually)
• Combination of both financing forms
The maximum loan amount can be up to PLN 300 million, and the financing period – up to 15 years with the possibility of a grace period of up to 12 months.
Who Can Apply for Support?
The program is divided into two categories of beneficiaries:
Large Units (≥10 MW)
Beneficiaries: Entrepreneurs conducting business in energy generation, having installed thermal and/or electrical power of energy sources of not less than 50 MW. Type of investment: Construction or reconstruction of generation units with power of not less than 10 MW, where a maximum of 30% of useful heat can be fed into the public heating network.
Smaller Units (≥0.5 MW)
Beneficiaries: All entrepreneurs as defined by the Entrepreneurs Law.
Type of investment: Construction or reconstruction of units with power of not less than 0.5 MW, where a maximum of 50% of useful heat can be fed into the public heating network.
Supported Technologies
The program finances cogeneration installations using:
• Waste heat from industrial processes
• Energy from renewable sources (biomass, biogas, geothermal energy)
• Gas fuels, gas mixtures, synthetic gas
• Hydrogen as the fuel of the future
Coal-fired units and installations co-firing solid fossil fuels with other fuels are excluded.
Complementary Investment Elements
The program provides for the possibility of financing complementary elements:
• Grid connections belonging to the project beneficiary
• Energy storage integrated with the generation unit implemented under the project
The inclusion of energy storage in the cogeneration program is an innovative approach that allows for optimal use of produced energy and increases the flexibility of the energy system.
Application Process
The call for applications is conducted continuously from April 22, 2024, to December 19, 2025, or until the allocation of funds is exhausted. Applications are submitted exclusively electronically through the Co-financing Application Generator (GWD) via the ePUAP platform.
Key dates:
• Eligible costs period: January 1, 2021 – December 31, 2030
• Undertaking commitments: until December 31, 2025
• Spending funds: until December 31, 2030
• Investment sustainability period: 5 years from completion of implementation
Eligible Costs and Limitations
The program provides a flexible approach to eligible costs, with the following limits:
• Investment preparation costs: up to 10% of eligible costs
• Real estate acquisition costs: up to 10% of eligible costs
• Investment management costs: up to 10% of eligible costs
• Intangible assets and rights: up to 20% of eligible costs
Particular attention is paid to VAT – it is an eligible cost only when the beneficiary cannot deduct it in accordance with tax regulations.
Benefits for Polish Energy
The “Cogeneration for Energy and Industry” program is a strategic investment in the future of Polish energy. High-efficiency cogeneration is characterized by efficiency at the level of 80-90%, while traditional power plants achieve efficiency of around 35-45%.
Main program benefits:
• Significant improvement in energy efficiency of Polish industry
• Reduction of greenhouse gas emissions
• Increased energy security
• Support for energy transformation
• Development of hydrogen technologies and renewable energy sources
Challenges and Perspectives
Program implementation may encounter certain challenges, such as the availability of qualified contractors, lengthy administrative processes, or fluctuations in energy raw material prices. However, the potential benefits significantly outweigh these difficulties.
The program also represents an excellent opportunity for the development of Polish technology and engineering companies specializing in cogeneration. It can contribute to creating new jobs and strengthening Poland’s position as a leader in energy efficiency in the region.
Contact and Support
The program coordinator is Dawid Karasek (kogeneracja.przemysl@nfosigw.gov.pl), who provides detailed information on participation conditions.
The “Cogeneration for Energy and Industry” program is a historic opportunity for Polish enterprises to modernize their energy sources with significant financial support from the state. In the context of rising energy prices and tightening climate requirements, investments in high-efficiency cogeneration are becoming not only profitable but essential for maintaining the competitiveness of Polish industry.
Source: https://www.gov.pl/web/funduszmodernizacyjny/kogeneracja-dla-energetyki-i-przemyslu-2nabor-wnioskow
Anna Faltus
An entrepreneur who conducts her business in the renewable energy industry. Owner of brands such as: RES Training, RES Academy, within which she organizes specialized training in the field of renewable energy sources and connects contacts in the RES industry. Initiator and creator of the RES Portal Magazine project – an online educational and informational magazine promoting access to expert knowledge in the field of RES. Organizer of the international conference combined with the ONLINE PV Conference&Expo exhibition fair aimed at the photovoltaic industry, the PV SALES LAB conference, and the RES Portal Partners Day event series. She collaborates with a wide group of experts from the RES industry, focusing on reliable and substantive transmission of theoretical and practical knowledge. Advisor in the field of entrepreneurship, business development, and marketing strategy development.
