Managing regulatory risk in the planning phase of renewable energy investment projects utilizing corporate power purchase agreements in Polish law

Abstract

PURPOSE: This article investigates the key regulatory risks affecting Corporate Power Purchase Agreements (cPPAs) in Poland. It aims to define the primary risk factors, assess their implications, and propose legal and contractual solutions to mitigate them.

DESIGN/METHODOLOGY/APPROACH: A qualitative, theoretical analysis is employed, based on a critical review of Poland’s legal and economic framework relevant to the implementation of cPPA projects. The research applies document analysis and legal interpretation methodologies to assess the regulatory landscape.

FINDINGS: The study identifies that cPPAs are exposed to multifaceted legal risks due to their embeddedness in dynamically evolving national and EU-level energy policies. These include risks related to grid access and infrastructure use, regulatory compliance, licensing, public fees, and legal unpredictability. The absence of a dedicated legal framework for cPPAs exacerbates uncertainty, compelling market actors to rely on private law instruments.

PRACTICAL IMPLICATIONS: The findings suggest that the optimal response to these regulatory challenges lies in the precise contractual structuring of cPPAs. Tailored legal provisions and risk allocation clauses can effectively address uncertainties and protect stakeholders.

ORIGINALITY/VALUE: This paper offers a novel perspective on cPPAs in the Polish context, where legislative support remains limited. By foregrounding contract law as a strategic tool for risk mitigation, the study contributes to the broader discourse on private sector participation in the energy transition.