EU state aid regulators have approved a PLN40bn ($11.2bn) Polish support scheme for renewable energy.
The regulators said that the approval will help the EU to meet energy and climate objectives.
The European Commission has also approved a reduced levy to finance the scheme for energy-intensive users.
Commissioner Margrethe Vestager, who is in charge of competition policy, said: "We want to make progress towards green energy for the sake of our environment but also for European economic growth.
“The Polish support scheme will increase the share of green energy in Poland's energy mix and help the country's energy transition. It will also preserve the global competitiveness of companies that are heavily energy dependent."
The scheme will support renewable energy producers, who will be selected by means of competitive auctions.
While the first two rounds took place in December 2016 and June 2017, additional auctions are planned to be organized until 30 June 2021.
Under the scheme, a feed-in tariff will be offered for small installations with a capacity of up to 500kW. Installations with a capacity of over 500kW will be given a premium on top of the market price of electricity.
The Commission said that the Polish scheme will encourage the development of different renewable technologies.
The scheme, which is financed by a surcharge levied on electricity consumers, will also help Poland to attain its 2020 environmental and climate change objectives, according to the Commission.
An evaluation will be conducted to assess the impact of the scheme. The evaluation results will be submitted to the Commission by December 2020.
Image: The regulators said that the approval will help the EU to meet energy and climate objectives. Photo: Courtesy of Steve Ralston/FreeImages.com.