As he pointed out, in cities with up to 50,000 residents, out of 164 district heating systems, only 10 met the effectiveness criteria according to the data of the Polish Chamber of Commerce for District Heating).

The new version of the “District Heating” programme will contribute to the improvement of living conditions of the residents, allow for the development of modern, environmentally friendly technologies, and consequently increase the quality of life of residents, he said.

As he added, local district heating systems have great potential for implementing technologies that use locally available renewable energy sources, as well as innovative combination of heat generation and storage.

The Minister of Climate also pointed out that energy storage in heating systems can be a low-cost alternative to stabilise the operation of the power grid in periods of increased energy production from large-scale RES plants, but also to increase electricity production in CHP plants during peaks in demand, when natural conditions limit generation from renewable sources.

About the programme:

"The aim of the “District Heating” programme is to reduce the negative impact of district heating companies on the environment, including air quality improvement.

The heating sector faces major challenges, which is why, together with the National Fund for Environmental Protection and Water Management, we want to support local heating plants that cannot afford an overhaul. Thanks to the “District Heating” programme, we offer local governments the opportunity to take advantage of the capabilities of CHP units to a greater extent, while reducing the costs of system maintenance, said Jacek Ozdoba, Vice-Minister of Climate.

The total budget of the programme amounts to 500 million PLN, of which 150 million is reserved for grants and 350 million was earmarked for returnable forms of co-financing.

One of the postulates raised by the representatives of the district heating sector and local government bodies was to extend the list of potential beneficiaries, which is why the new call is also open to companies where more than 50% of all shares are owned by local government. To date, the minimum local government shareholding was 70%, which limited the possibility of participation in the programme of entities with mixed ownership structure, the Vice-President of the National Fund for Environmental Protection and Water Management Artur Michalski pointed out.

Thanks to the reduction of the minimum loan value from 1 million to 500,000 PLN, entities with lower investment capabilities will also be able to apply for co-financing, which will enable them to gradually regain the status of effective heating systems, Minister Kurtyka added.

The “District Heating” programme offers support to a number of projects aimed at reducing or avoiding harmful emissions, increasing the efficiency of heating systems, as well as overhauling and expanding district heating networks.

Financing is also available for investments concerning new heating and energy sources, in particular those using RES, waste heat, heat from cogeneration, low-emission gaseous fuels, gas mixtures, synthetic gas or hydrogen for energy production.