Poland to raise energy subsidies for industry to up to 70%

Poland’s Council of Ministers has adopted a draft law that would allow energy-intensive industries to temporarily receive subsidies covering up to 70% of eligible electricity consumption costs, instead of the 50% originally envisaged.

The move follows Poland’s use of possibilities created by the EU’s temporary METSAF (Middle East Crisis Temporary State Aid Framework), adopted in response to the crisis in the Middle East.

A total of PLN 4.8 billion has been earmarked for the support scheme for 2027–2030, CE Report informs via the Ministry of Economic Development and Tecnology of the Republic of Poland's official website.

“The situation of energy-intensive industry requires a stronger response today. That is why we are using the possibility of temporarily increasing energy subsidies from 50% to as much as 70%. This provides additional protection for companies during a period of heightened cost pressures, while at the same time linking support to investments designed to permanently improve their competitiveness,” Finance and Economy Minister Andrzej Domański said.

From 50% to 70% – temporary increase in support

The original programme, based on the CISAF (Clean Industrial Deal State Aid Framework), allowed state aid to cover a maximum of 50% of eligible electricity consumption costs. The new solution would temporarily increase the aid intensity from 50% to 70%.

This is possible following the European Commission’s adoption of temporary state-aid rules related to the Middle East crisis, known as METSAF, which complement CISAF. The framework is exceptional and temporary, allowing member states to provide companies with greater protection during periods of particularly strong cost pressures while maintaining requirements for investment in the energy transition.

PLN 4.8 billion for energy-intensive industry

The draft law provides for a support scheme for energy-intensive companies for 2027–2030, with PLN 4.8 billion allocated for the programme:

PLN 800 million in 2027;
PLN 1.6 billion in 2028;
PLN 1.6 billion in 2029; and
PLN 800 million in 2030.

The aid will be temporary and linked to companies’ investments. Beneficiaries will be required to allocate at least 50% of the equivalent of the support received to measures including decarbonisation, improved energy efficiency, renewable energy development, energy storage and greater flexibility in electricity consumption.

The higher aid intensity therefore does not mean abandoning the principle that support should lead to a lasting improvement in companies’ competitiveness. Rather, the temporary protection is intended to give businesses room to make investments that will reduce their exposure to high energy prices.

Why is additional support needed?

Europe’s energy-intensive industries continue to operate amid high energy costs. In 2026, pressure linked to the energy transition has been compounded by geopolitical factors and deteriorating conditions in global fuel markets.

This is particularly significant for companies for which energy accounts for a substantial share of production costs and which compete with businesses outside the EU in jurisdictions with lower energy costs and less ambitious climate policies.

Potential plant closures could result not only in job losses but also in the loss of know-how and infrastructure that would be costly and time-consuming to rebuild. Maintaining domestic production capacity is also important for economic security, as it reduces the risk of disruptions in supplies of key products and exposure to sharp increases in the prices of imported goods.

Large industrial companies also generate demand for transport, maintenance, logistics and financial services. Their condition therefore affects other sectors of the economy as well.

Additional source of financing

The draft law also provides for amendments to the Corporate Income Tax (CIT) Act, involving a temporary increase in the tax rate for a defined group of taxpayers generating unusually high profits, particularly in connection with the current geopolitical and market situation.

The regulation would apply to companies with revenues exceeding €50 million. The change is intended to provide a source of financing for the planned support programmes for energy-intensive industry. The government’s draft legislation currently envisages temporarily raising the standard 19% CIT rate to 30% in 2027, 26% in 2028 and 23% in 2029, before returning to the standard rate in 2030.

Photo: Ministry of Economic Development and Tecnology of the Republic of Poland