On 30 April, a major amendment to the Energy Act (UC84) came into force. It fundamentally changes the rules governing grid connection. Among the new regulations is, amongst other things, the requirement for security in respect of the connection agreement. Once a connection agreement has been concluded, investors will be required to provide security of up to 12 million zlotys. This may take the form of a deposit, a bank or insurance guarantee, or a surety from the parent company. Failure to provide such security will result in the termination of the connection agreement.
The new regulations also apply to projects currently in progress. Investors will be required to provide security for these projects within a specified timeframe as well. The difference will lie in the amount of security required, as for projects currently in progress this will be one quarter of the standard amount.
The requirement to apply security deposits provided for projects currently in progress towards the connection fee may give rise to significant problems. The Act mandates that any security deposit provided must be applied towards this fee. This will give rise to significant uncertainties and complications where the security is provided in the form of a bank or insurance guarantee.
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Practical legal commentary, selected regulatory changes, and experience from projects that have a real impact on business decisions.
Practical legal commentary, selected regulatory changes, and experience from projects that have a real impact on business decisions.