The Polish Ministry of Energy (ME) has been working on a set of changes to the Renewable Energy Sources Act and certain other acts including the Wind Energy Investments Act. The wording of the proposed changes is to be presented this week.
According to the ME and various press releases, the proposals aim to clarify some issues that arose as a result of implementing legislation applicable to the area of RES and to support the development of the wind energy sector. The ME is suggesting implementing a system of Feed-in-Tariffs and Feed-in-Premiums for micro and small-scale renewable energy installations as well as changes with respect to the construction of new houses near existing wind farms. However, the most interesting information coming from the ME is that the amendments are also designed to eliminate doubts with regard to the calculation of taxes imposed on RES installations. The Wind Energy Investments Act defines a wind farm as a structure consisting of a foundation, a tower and various technical elements (e.g. turbines). This definition has created difficulties and it has been claimed that it influences the way in which real estate tax is calculated. Namely, some municipalities are charging real estate tax on the value of the whole wind farm (including the value of the turbines). Prior to the introduction of the Wind Energy Investments Act, real estate tax was only charged on the construction elements of the windfarm and was therefore significantly lower.
According to the ME, the proposed changes will restore this position and expressly state that real estate tax should only be charged on the construction elements of wind farms. This could be of great importance both to investors and to the developers of existing wind farms. The ME plans to enact the proposals in September 2017 after they have been subject to public consultations. As soon as the details are revealed, we will provide you with further information.