Today in our "Lawyer on the Farm" series, we continue our discussion of funding for high-efficiency cogeneration projects based on renewable energy sources—specifically biomass (excluding forest biomass), biogas, and biomethane. We'll discuss the practical aspects of obtaining funding and the most common challenges farmers face.
How does this affect the real life of an investor?
Behind every investment lies a specific individual: a mayor seeking to free the municipality from expensive coal-fired heating, a housing cooperative president seeking a way to lower tenant bills, or an entrepreneur who, instead of paying for waste disposal, can convert it into biogas. For them, the investment decision is often a "make or break" decision regarding a project for the next 15-20 years – the success of the application process determines whether financing for a modern installation will be possible or whether a more expensive and more emission-intensive technology will be adopted. A formal error, a single missing annex, an incorrectly described legal title to the property, or an imprecise description of the technology in light of the statutory definition of cogeneration – all of these can result in the rejection of an application or the imposition of a severe correction after the investment is completed. In practice, this poses a real risk to the municipal or company budget, and in extreme situations, even liability for misuse of public funds.
Where do problems most often occur?
First, at the project concept stage, it's necessary to verify whether the planned installation meets the definitions of "high-efficiency cogeneration" and renewable energy sources, and whether its technical parameters and fuel source comply with the Renewable Energy Act and the Energy Law. Without this verification, it's easy to create a project that is technically attractive but falls outside the scope of the FEnIKS program or future biogas and biomethane programs. Second, formal issues pose a challenge: legal title to the property, compliance of the investment with planning documents, environmental decisions, building permits, and agreements with the electricity or gas system operator. These elements are not always described in detail in the call for proposals, but their absence or irregularity quickly becomes apparent during application evaluation or project inspection. Third, the correct recognition of eligible costs and the proper allocation of expenses to the scope of support (cogeneration source, energy storage, supporting infrastructure) are crucial. An incorrectly structured project budget may result in a reduction in the awarded subsidy or the recognition of some costs as ineligible.
How can our office help?
The role of a lawyer in renewable energy and cogeneration projects is not to "write two paragraphs," but to provide comprehensive investor protection—from concept, through application, to project settlement.
During the planning phase, our law firm can assist in selecting the appropriate support instrument (e.g., FEnIKS, future biogas programs, other NFOŚiGW instruments) and verify whether the planned installation will meet legal and program requirements. The next step is to prepare or verify the documentation for the funding application: technical descriptions in light of statutory definitions, public aid declarations, documents regarding property title, and compliance with spatial planning and environmental law. One of our lawyers can also review agreements with technology suppliers, contractors, and grid operators to ensure their provisions do not conflict with program terms and do not pose a risk of financial adjustments. During the project implementation and settlement phase, support includes assistance with amending funding agreements, reporting on material and financial progress, and with any potential audits by intermediary institutions or the NFOŚiGW. In the event of a dispute regarding the eligibility of expenses or the application of financial corrections, the law firm may represent the beneficiary in appeal and administrative court proceedings.
Why is it worth thinking about law today?
The energy transition in Poland is accelerating, and the share of renewable energy sources and distributed installations in the energy mix is steadily growing. The FEnIKS – High-Efficiency Cogeneration Sources program is one of the key tools designed to help businesses, local governments, and cooperatives transition from costly, emission-intensive energy sources to modern, low-emission installations, including biogas and biomethane plants. Whether this opportunity is seized depends not only on a sound technological concept but also on conscious and safe navigation through the dense network of national and EU regulations.
Therefore, in projects financed from European funds, legal assistance is not a formality, but real support in protecting multi-million investments and the peace of mind of those responsible for them.
This article is for informational purposes only and does not constitute legal advice.
The law is current as of December 18, 2025.
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