Government greenlights landmark bill for biogas and prosumer energy storage

After months of delay, the Polish government has finally approved a long-awaited bill that aims to revolutionise the biogas, biomethane and prosumer energy storage sectors. The project, known as UD332, was adopted on 14 July 2026 and removes key barriers that have held back investment in renewable energy.

The draft law, prepared by the Ministry of Climate and Environment (MKiŚ), deliberately omits wind power provisions that led to a presidential veto in August 2025. By focusing exclusively on areas with broad political support, the ministry hopes to avoid another veto from President Karol Nawrocki.

At the heart of the proposal is a new auction-based support mechanism for biomethane installations above 1 MW. Producers will be able to sign 20-year contracts for difference (CfD), guaranteeing stable revenues and improving project bankability. The government estimates the scheme could support the production of nearly 300 million cubic metres of biomethane annually – equivalent to around 3,100 GWh.

Billions in investment needed for biomethane boom

To reach the projected scale, the ministry calculates that around 50 new biomethane plants with an average capacity of 2.8 MW would need to be built. The total capital expenditure for such a programme is estimated at 9.25–10 billion złoty, with additional operating support of 7.5–8 billion złoty over the first decade.

– Średnie koszty tego rodzaju instalacji wynoszą ok. 33–40 mln zł w przypadku jednostki produkcyjnej o wydajności 2 mln m3 biometanu rocznie – czytamy w Ocenie Skutków Regulacji. The document notes that larger units require additional gas connections and compression stations, driving up costs.

Alongside the auction system, the bill simplifies permitting for direct biogas and biomethane pipelines connecting producers to end-users. It also clarifies quality standards for biomethane, closing interpretational loopholes that have hindered the sector.

Prosumers get green light for bigger energy storage

One of the most far-reaching changes concerns prosumers – households and businesses that both produce and consume electricity. Currently, the capacity of a solar installation and a battery storage system are summed together, meaning that a 40 kW solar array with a 20 kW battery exceeds the 50 kW prosumer threshold and loses its special status.

Under the new rules, these capacities will no longer be added together. Prosumers can install storage of up to 2.2 times the capacity of their generation unit – for example, a 10 kW solar system could have a 22 kW battery – as long as the total power fed into the grid does not exceed the generation unit’s own capacity. This change is expected to unlock widespread investment in behind-the-meter storage.

The bill also adjusts rules for energy cooperatives, lowering the maximum capacity threshold from 400 kW to 200 kW for exemption from commercial balancing costs. Additionally, the definition of biomass is broadened to include industrial residues of biological origin and products from waste recovery, ending years of legal uncertainty.

Źródło: wnp.pl, Fot. Ralf Geithe / Shutterstock

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