The European Commission has approved a Polish scheme to support high-efficiency co-generation of heat and power (CHP), considering that this scheme is state aid but complies with EU state aid rules since it furthers efficient energy production.The scheme will run until 2018 with an annual budget of over PLN 1 billion (€232m).
Poland introduced the CHP certificates support system in 2007. The certificates are colour coded (yellow, purple or red) and are allocated to the beneficiaries depending on the source of fuel and the capacity of the CHP plant. The system then requires electricity suppliers and certain entities to purchase from the beneficiaries a specific number of CHP certificates, in proportion to the amount of power supplied to end users or purchased.
Poland considered that its CHP certificates system did not constitute state aid but notified the measure to obtain legal certainty. The Commission concluded that the CHP support system and its financing involve state resources and contains all the elements to qualify as state aid. However, the system was found to be in line with state aid rules, as Member States are allowed to grant State aid for high efficiency CHP subject to certain conditions that Poland meets.
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