ACT of 14 December 2018 on the promotion of electricity from high-efficiency cogeneration

The Act lays down the rules for granting support for electricity generated in high-efficiency cogeneration units and for issuing guarantees of origin of electricity from high-efficiency cogeneration.The Act of 14 December 2018 on Promotion of Electricity from High Efficiency Cogeneration (hereinafter referred to as the "CHP Act"), which introduces new support systems for cogeneration units replacing the existing mechanism in form of certificates of origin from cogeneration. The Act entered into force on 25 January 2019 and is intended to reduce adverse environmental effects while ensuring the security of heat and electricity supply and to improve the efficiency of energy carriers through the development of high-efficiency cogeneration.The above objectives are to be achieved through support in the form of bonuses paid to generators to the electricity price under the following schemes:1. auction support system - in the form of a cogeneration bonus for cogeneration units (new and significantly upgraded) with an installed electrical capacity of not less than 1 MW and less than 50 MW, which will win the auctions announced, conducted and resolved by the President of Energy Regukatory Office/Authority (ERO);2. the system of support in the form of a guaranteed bonus (the amount of the bonus is determined by the Minister of Energy in a regulation) for:- cogeneration units (existing and modernized) with installed electrical capacity not less than 1 MW and less than 50 MW;- small cogeneration units (new, significantly modernised, existing or upgraded), which are part of a source with a total installed electrical capacity of less than 1 MW;3. a support system in the form of an individual guaranteed bonus (the amount of the bonus is determined individually by the President of ERO) for cogeneration units (existing and modernised) with an installed electrical capacity of not less than 50 MW;4. support system in the form of intake - in the form of an individual cogeneration bonus for cogeneration units (new and significantly upgraded) with an installed electrical capacity of not less than 50 MW, which will win intakes announced and conducted by the President of ERO.Before receiving support, all cogeneration units will have to obtain a decision of the President of ERO to be admitted to the relevant system (proceedings in this case will be conducted at the request of the entrepreneur).

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