The Importance of Local Investments Co-Financed by the European Union in the Field of Renewable Energy Sources in Rural Areas of Poland

Abstract

Local investments for the development of renewable energy sources (RESs) constitute an important element of sustainable rural development. They are conducive to the social and economic development of the said areas, and improve the environmental values and living conditions of their inhabitants. However, such advancement in rural areas is not possible without adequate financial support, including the funds from the EU budget. Therefore, the main objective of the research is to assess the scale, scope and importance of local investments in renewable energy sources in rural areas of Poland in 2014–2020, cofinanced from EU funds. The study covered 1117 projects, whose beneficiaries were rural and urban–rural municipalities. Evaluation of the municipal investment activities in acquiring EU subsidies in the area of environmentally friendly energy was conducted using selected methods of descriptive statistics and the analysis of variance. Subsequently, with the use of logistic regression, the study identified the main socioeconomic, financial and environmental conditions of the investment activities of the local government entities in RES in rural areas. Empirical studies allowed for the positive verification of the research hypothesis, which assumed that “The highest investment activity in the field of local projects co-financed from EU funds, related to the development of RES in rural areas, may be attributed to municipalities performing primarily agricultural functions, located in Eastern Poland”. The municipalities’ own income potential and investment activity are of major importance for the acquisition of EU funds used in RES financing. Municipalities at a lower development level demonstrated a greater activity in accessing these funds. They view the development of RES as an opportunity for accelerated growth.

Polish Cittaslow Local Governments’ Support for Renewable Energy Deployment vs. Slow City Concept

“…The principles of this collaboration assume that actions aimed at the deployment of renewable energy need to be implemented at the national, regional, and local levels. It has been proved that the effective deployment of renewable energy particularly needs to be supported at the local level [9], and many concepts and models have been proposed to achieve it. Networking within the slow city concept can be considered as one of them.…”

Smart Villages and Rural Development

“…Also, there is large importance of the role of local government units in animating rural development which is being analyzed by different authors: Satola [2015], Milewska and Jóźwik [2014] and Rutuja [2016]. It must be emphasized that economic growth and development is not possible without financial possibilities of the local administrations: Satola [2015], Kozera, Standar and Satoła [2020] and Standar, Kozera and Satoła [2021].…”

SWOT analysis of renewable energy sector in Mazowieckie Voivodeship (Poland): current progress, prospects and policy implications

“…79% of respondents believe that more financial incentives or tax remissions should be introduced for RE investors in Mazowieckie Voivodeship (Standar et al, 2021). The respondents emphasize that it is not just about introducing very high subsidies, but rather about clear accounting principles, market access, and trouble free connection to the power grid.…”