New incentive scheme for electricity generated in high-efficiency CHP units

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On 14 December 2018 Sejm (lower chamber of polish Parliament) adopted the act on promoting electricity from high-efficiency cogeneration (“Act”) which is envisaged to incentivize generation of electricity from the high-efficiency combined heat and power units (“CHP Units” and “CHP Electricity”). The Act entered into force on 25 January 2019, while implementation of certain incentive mechanism will be dependent upon EC decision approving the state aid scheme provided in the Act.

[Previous legal framework] Since 1 July 2007, generation of the CHP Electricity has been incentivized with the support scheme based on different types of the certificates of origin (so-called “red”, “yellow” and “violet” certificates). The foregoing scheme expired at the end of 2018 (with settlement for the year 2018 to be completed by end of June 2019).