Poland Advances Grid Stability With 183 Energy Storage Projects Backed by EU Funds

Poland’s National Fund for Environmental Protection and Water Management (NFOŚiGW) has shortlisted 183 energy storage projects for grants and loans, drawing on PLN 4.15 billion ($1.14 billion) from the EU Modernisation Fund. NFOŚiGW said the budget for the April-launched scheme—titled “Electricity Storage Facilities and Related Infrastructure to Improve the Stability of the Polish Power Grid”—is now fully exhausted.

The call drew 480 positively evaluated proposals in total, but only the 183 top-ranked projects are eligible for support.

Heavy oversubscription signals strong market appetite

NFOŚiGW said interest was exceptionally strong among businesses (excluding financial-sector entities). The submitted project pipeline exceeded PLN 70 billion in total value. Funding requests reached nearly PLN 28 billion for storage facilities totaling more than 20 GW of power and 122 GWh of energy capacity—almost seven times the program’s available budget.

Eligible projects and what the support covers

Planned investments must include systems of at least 2 MW and 4 MWh. The required project scope includes battery containers, inverters, transformers, battery module assembly, auxiliary systems, plus testing and acceptance of the storage facilities. Support can also optionally cover grid connections and related infrastructure, as well as warehouse configuration and adaptation.

Funding split and aid intensity

Of the total allocation, PLN 3,735,000,000 is set aside for grants and PLN 415,000,000 for loans.

• Grants can cover up to 45% of total investment costs, rising to 55% for medium-sized companies and 65% for small companies.

• Loans can cover up to 100% of eligible costs.

How this interacts with Poland’s capacity market

NFOŚiGW noted that investment aid under this program can be combined with capacity market aid, but under current rules, investment aid received for the same capacity market unit reduces the capacity market remuneration—regardless of when the contract is signed or how the tender result lands.

This reduction principle has applied since the capacity market began and is rooted in Article 62 of the Capacity Market Act, intended to prevent excessive public support and ensure compliance with Polish and EU rules.

Next steps and timing

Selected applicants must now accept the funding terms, after which NFOŚiGW’s Management Board can proceed with disbursements. The final funding approval will be issued by the NFOŚiGW Supervisory Board. Agreements with beneficiaries are expected to be signed by end-2025.

NFOŚiGW also stressed that appearing on the ranking list does not legally obligate the Fund to award financing.