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Poland Capacity Market Act

Poland Capacity Market Act: Poland Capacity Market: Security of Supply and Delivery Obligations

Maílis Carrilho
Written by Maílis Carrilho
Updated on June 3rd, 2026

Summary

Poland’s Capacity Market Act creates a parallel remuneration mechanism for electricity capacity to ensure security of supply. While participation is voluntary, contracted obligations are strictly enforced, with penalties for non-delivery. The regime has material implications for generators and demand-side resources and interacts closely with EU state aid and decarbonisation rules.

Details

Jurisdictions
  • Poland
Mandatory for

Legally binding for:

Capacity providers participating in auctions.

Entities receiving capacity remuneration.

Exemptions

Participation is voluntary, but obligations become binding once a capacity agreement is signed.

Certain technologies may face eligibility constraints depending on emissions thresholds and EU rules.

Deep dive

3 min read
Updated Jun 3, 2026

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What's Required

Organizations participating in the Polish capacity market may need to:

  • Qualify capacity units through the certification process.

  • Participate in capacity auctions or secondary market transactions.

  • Enter into capacity agreements if awarded obligations.

  • Maintain declared capacity availability during delivery periods.

  • Respond to system stress events or capacity market performance tests.

  • Provide operational, technical and metering data to the transmission system operator.

  • Comply with emission performance standards where applicable.

  • Meet financial security, settlement and reporting obligations.

  • Notify authorities or the transmission system operator of outages, deratings or availability changes.

  • Pay penalties where contracted capacity is unavailable or obligations are not met.

The capacity market is administered by Poland’s transmission system operator, Polskie Sieci Elektroenergetyczne, under regulatory oversight.

Important Deadlines

  • The Capacity Market Act was adopted in 2017.

  • The first main capacity auction was held in 2018.

  • Capacity delivery periods began in 2021.

  • Certification, auction, secondary trading, testing and settlement deadlines recur annually or according to auction schedules.

  • Capacity obligations apply throughout the relevant delivery period under each capacity agreement.

Specific deadlines depend on the auction year, delivery year, certification stage and rules issued by the transmission system operator.

Current Status

The Poland Capacity Market Act is currently in force.

The capacity market remains an operational part of Poland’s electricity market design. It has been approved under EU State aid rules, subject to conditions related to competition, cross-border participation and emissions limits.

The framework is legally binding for entities that participate and receive capacity obligations. It is not a voluntary pledge or reporting-only framework. Participation in auctions may be voluntary, but once a capacity agreement is awarded, the provider must comply with availability, testing, reporting and settlement obligations.

The system is also affected by EU electricity market rules, including emissions performance limits for capacity mechanisms. These rules restrict support for high-emission generation over time and may influence the eligibility of coal-fired units.

Penalties for Non-Compliance

  • Statutory fines

Non-compliance may lead to financial, contractual and regulatory consequences.

Potential consequences may include:

  • Capacity payment reductions.

  • Penalties for failure to deliver capacity during system stress events.

  • Penalties for failing performance tests.

  • Loss of financial security.

  • Termination or reduction of capacity agreements.

  • Exclusion from future capacity market participation in serious cases.

  • Regulatory enforcement by the Energy Regulatory Office.

  • Repayment obligations where capacity payments were improperly received.

  • Increased monitoring, testing or reporting requirements.

Because the framework operates through capacity agreements and market participation, the main compliance consequence is financial: loss of capacity payments or penalties for non-performance.

Examples of Known Violations

As of May 2026, we were not able to find a centralized public database of specific penalties imposed under the Poland Capacity Market Act against named organizations.

However, capacity market participants may face settlement penalties, payment reductions or contractual consequences if they fail to meet availability, testing or delivery obligations during contracted delivery periods.

Resources


Maílis Carrilho
Added by:
Maílis Carrilho
Sustainability Research Analyst
Maílis Carrilho is a Sustainability Research Analyst (Intern) at Net Zero Compare, contributing research and analysis on climate tech, carbon policies, and sustainable solutions. She supports the team in developing fact-based content and insights to help companies and readers navigate the evolving sustainability landscape.
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Added on Jun 2, 2026 by Maílis Carrilho · Updated on Jun 3, 2026