The European Commission has approved a €1.2 billion Polish initiative aimed at boosting investments in electricity storage facilities. The scheme is part of Poland’s efforts to transition to a net-zero economy by integrating renewable energy sources into the national grid and reducing reliance on fossil fuels.

Funded partly by the Modernisation Fund and the Recovery and Resilience Facility (RRF), the plan will support the installation of at least 5.4 GWh of new electricity storage capacity across the country. Eligible projects must involve newly installed facilities with a minimum capacity of 4 MWh.

Poland will select projects through a call for proposals, with the support provided through a combination of direct grants and loans. The funding will cover up to 45% of the investment costs for supported projects, with higher support rates for medium-sized (up to 55%) and small companies (up to 65%).

The initiative falls under the State aid Temporary Crisis and Transition Framework (TCTF), adopted by the European Commission in March 2023, which is designed to facilitate the green transition during crises.