National Contact Point for Renewable Energy Sources

Flowing inland waters are the property of the State Treasury and are therefore classified as public waters. They are not subject to civil law transactions, except in cases specified by statute. Obtaining legal title to use land under waters for the purpose of constructing and operating a hydropower plant is subject to the provisions of the Water Law Act.

The procedure for managing State Treasury property administered by Regional Water Management Authorities, which are organizational units of the State Water Holding "Polish Waters", is detailed in an ordinance issued by the President of the State Water Holding "Polish Waters".

Land covered by waters and owned by the State Treasury, necessary for the implementation of hydropower projects, is made available for use in exchange for an annual fee. The land is made available on the basis of a land use agreement. The law does not provide for any form of transfer of rights to manage land covered by waters other than land use. The provision of land is based on Article 261 of the Water Law Act. A prerequisite for the conclusion of a land use agreement is that the prospective user holds a water law permit (either a water law decision or notification), if required.

The conclusion of the agreement is preceded by the submission of an application by the interested entity for the conclusion of a land use agreement for land under flowing waters.

The Water Law Act, with certain exceptions, stipulates that the disposal of real estate not classified as land covered by flowing surface waters must be carried out through a tender procedure. The rules for conducting such tenders are set out in the Water Law Act and the regulation on the procedure for conducting tenders for the disposal of real estate owned by the State Treasury.

In the case of investments in small hydropower, a non-tender procedure is usually applied, which, in accordance with the Water Law Act, is applicable in situations such as:

• when the disposal of property is made in favor of an entity that manages existing infrastructure constructed on the property in accordance with the provisions of the Construction Law Act;
• when the disposal of property is related to the construction or operation of a water facility, provided that a water law permit has been issued or a promise to issue such a permit has been granted;
• when a subsequent agreement is concluded concerning the same property.

For investments in hydropower plants, the subject of agreements under the procedure concerning real estate not classified as land covered by flowing surface waters most often includes:

• water facilities or parts thereof managed by Polish Waters;
• land under waters located beyond the shoreline of a natural watercourse;
• land located within a cadastral parcel that also includes inland flowing waters owned by the State Treasury.

The purpose of the decision is to obtain legal title to the property on which the hydropower plant is to be located.

The decision should be obtained prior to commencing the investment involving the construction of a hydropower plant.

Obtaining the decision is possible only after receiving water law consent, which means that, in the case of hydropower plants, the land use agreement does not constitute the first stage of the investment process.

The application template is specified in the annex to the Procedure for Managing State Treasury Property. A link to download the annex is available on the website:

Rules for Managing State Treasury Property (wody.gov.pl)

Documents required for the application to be considered and for the agreement to be concluded (originals or copies certified as true to the original), in accordance with the procedure for managing State Treasury property, include:

• a cadastral or base map with the area intended for use clearly marked;
• an original and up-to-date (not older than 6 months from the date of application) extract from the land register for the State Treasury plot intended for use;
• a final water law permit, legalization decision, or confirmation of effective submission of a water law notification, if the type of activity conducted on the land requires it;
• a current extract from the relevant register of business entities – National Court Register (KRS), not older than 3 months before the application date;
• a power of attorney or other document confirming the authority to act on behalf of the applicant.

The area of land requested for use should also include the protective zone required for the operation of facilities related to the project, as defined by separate regulations (including industry standards), which causes or may cause any restrictions on further use of the land by other entities or by the water owner.

In the case of infrastructure located in or beneath the bed of a watercourse, as well as transmission infrastructure — including overhead power lines running above land covered by flowing water — if the protective zone is not defined in industry standards or separate regulations, it shall be designated at a minimum distance of 0.5 meters from the outer edges of the infrastructure. This zone is intended to ensure protection during maintenance works on the watercourse or the installation of other water facilities and technical infrastructure.

The competent authority conducts a substantive and formal review of the application. If the application is complete, the authority may conclude a land use agreement for land under flowing waters.

Additionally, each application for the conclusion of an agreement must be reviewed by the Director of the Catchment Management Board of the State Water Holding "Polish Waters". The request for an opinion is submitted to the Director by the appropriate unit within the structure of the State Water Holding "Polish Waters".

The agreement is concluded in writing. If the annual fee for land use exceeds PLN 5,000, the agreement must be executed in the form of a notarial deed.

The Director of the Regional Water Management Authority has up to 120 days to review the application. This period is counted from the date of submission of a complete application, but it also depends on the timeline for obtaining the required consents.

The application should be submitted to the Director of the Regional Water Management Authority.

Land covered by flowing surface waters may be made available for use for a fixed period, but not longer than 10 years. In the case of agreements concluded in the form of a notarial deed, the maximum period is 15 years. If the agreement is concluded due to public interest, it may be valid for up to 20 years, but not longer than the validity period of the water law permit.

In situations where the use of the property is linked to a water law permit for water use, the duration of the agreement may not exceed the validity period of that permit.

The annual fee for granting land use rights for land covered by waters depends on the type of ongoing or planned project and the corresponding annual rate specified in the Regulation of the Council of Ministers of 28 December 2017 on the amount of the unit annual fee for granting land use rights for land covered by waters. It also depends on the area necessary for the implementation of the project.

The fee is calculated as the product of the land area and the rate specified in the regulation. The amount of the annual fee and any exemptions are non-negotiable. The fee is determined proportionally to the duration of the activity. The area intended for use must be provided in full square meters, rounding up each started meter.

For hydropower-related projects, the unit annual fee rate for land use (per 1 m²) is as follows:

a) For construction facilities of a hydropower plant, including the span of the dam structure containing the water intake for the plant – PLN 8.90 per m²;
b) For dam and spillway structures, fish passes, and other construction facilities and equipment – PLN 2.00 per m².

The amount of the fee for using the property is subject to annual indexation based on the average annual consumer price index for goods and services, as announced by the President of the Central Statistical Office (GUS) in the Monitor Polski for the previous year. Exceptions apply to fees subject to indexation under the Act of 15 November 1984 on agricultural tax or the Act of 12 January 1991 on local taxes and fees. Indexation is not applied if the current index is below 100.

The annual rent for the use of dam structures or their parts used for hydropower purposes shall be no less than 7% of the total annual revenue from the electricity produced (as declared in a statement, the template of which is attached to the agreement). However, the rent must not be lower than the amount calculated based on the surface area of the leased facility, using the following rates:

• PLN 15 per m² for the area occupied by construction facilities of the hydropower plant;
• PLN 4 per m² for the area of the dam structure owned by the lessor, along with other related construction facilities and equipment used for energy purposes by the lessee.

The annual rent for the use of other construction facilities or their parts used for hydropower purposes shall also be no less than 7% of the total annual revenue from the electricity produced (based on the submitted statement). However, it must not be lower than the amount calculated using the following rates:

• PLN 15 per m² for the area occupied by construction facilities of the hydropower plant;
• PLN 4 per m² for the area of the dam structure owned by the lessor, along with other related construction facilities and equipment used for energy purposes by the lessee.

Not applicable.

Electronic submission of applications is not available.