Loan (National Fund for Environmental Protection and Water Management – “Efficient Heating and Cooling”)

Updated: 10.01.2019

Author: Krzysztof Ignaciuk

Part 3 of the priority programme “Support for low-emission and resource-efficient economy” earmarks funds for loans to support projects increasing the efficiency of heating and cooling systems in existing enterprises, including construction or modernisation of generating units as well as connection to the heat distribution or transmission network.

The duration of the scheme is 2016-2023 (4. “Efficient heating and cooling systems”), whereas new support will be granted to 2022.

Eligible technologies

All RES except geothermal energy are eligible. Support is granted to projects implemented in existing enterprise regarding the construction or modernisation of generating units with connection to the distribution / transmission network aimed at upgrading the heating system in which they operate to meet the definition of an efficient heating system, in which heat or cooling generation uses at least: 1) 50% energy from renewable sources, or 2) 50% waste heat, or 3) 75% heat from cogeneration, or 4) A combination of such energy and heat is used in 50%.

Aerothermal energy

Eligible, no specific provisions

Hydrothermal energy

Eligible, no specific provisions

Biogas

Eligible, no specific provisions

Biomass

Eligible, no specific provisions

Geothermal energy

Not eligible

Solar thermal energy

Eligible, no specific provisions

Amount

The overall budget of the programme is PLN 3,000 million (€ 699 m) for the timeframe 2015-2023 (3. “Efficient heating and cooling systems”). The loan shall cover a maximum of 85% of eligible investment costs (7.2 “Efficient heating and cooling systems”). The loan can range from PLN 1 million to PLN 400 million (EUR 93.13 m) (7.3.1 “Efficient heating and cooling systems”). Interest rate of the loan is: WIBOR (Warsaw Interbank Offered Rate) 3M + 50 base points but not less than 2% (7.3.2 “Efficient heating and cooling systems”). The maximal duration of loan support is 15 years (7.3.4 “Efficient heating and cooling systems”).

Addressees

Eligible for the loan support are entrepreneurs under Art. 4 of the Freedom of Economic Activity Act (7.4 “Efficient heating and cooling systems”) conducting business activity in the form of an enterprise under Art. 551 of the Act of 23 April 1964 Civil Code, with the main purpose of generation of thermal energy for communal utility purposes (at least 30% of the generated heat stream).

Procedure

Process flow

Applications are to be submitted to the National Fund for Environmental Protection and Water Management

Applications are accepted on a rolling basis.

Competent authority

National Fund for Environmental Protection and Water Management

Distribution of costs

Distribution mechanism

Costs are borne by consumers.