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Change in the Jurisprudential Line Concerning the Location of Photovoltaic Installations on the Basis of Decisions on Development Conditions and Change in the Rules of Locating Photovoltaic Installations on the Basis of Local Plans

   | Feb 10, 2024

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Introduction

The subject of this publication is the recent changes caused by the shifting interpretation of the law by administrative courts, and the change in the content of the law by the legislator. This concerns the rules for the location of photovoltaic installations on the basis of decisions on land development conditions and local plans, respectively. In the first area, it is necessary to point to the judgment of the Supreme Administrative Court of June 29, 2022, ref. II OSK 1276/21. Under its influence, the position of administrative courts on the possibility of locating renewable energy investments, mainly the location of photovoltaic installations on the basis of decisions on development conditions in the context of the findings of the study, has changed significantly. In addition, the Act of March 9, 2023

Law of 9 March 2023 on amending the Law on Investment in Wind Power Plants and certain other laws (Journal of Laws of 2023 – (Polish: Dziennik Ustaw, hereinafter: Dz. U., item 553).

amending the Act on investments in wind power plants and certain other acts, effective April 23, 2023, introduced a number of changes regarding the location of photovoltaic installations on the basis of local plans. Therefore, the subject of the publication is to determine these changes and their impact on the possibility of locating photovoltaic investments.

Change of the jurisprudence line concerning the location of photovoltaic installations on the basis of a decision on development conditions

In the jurisprudence of the administrative courts of the first and second instance, as well as in the statements of some representatives of the doctrine, there was a wrong view according to which the location of photovoltaic installations of a capacity exceeding the thresholds of Article 10(2a) of the Act of 27 March 2003 on spatial planning and development (hereinafter: the ‘UPZP’)

Act of 27 March 2003 on spatial planning and development (i.e. Dz. U. 2022, item 503 as amended).

on the basis of a decision on development conditions is possible only in areas indicated for this purpose in the studium.

Judgment of the Voivodship Administrative Court (Polish: Wojewódzki Sąd Administracyjny, hereinafter: WSA) in Bydgoszcz of 17.08.2021. II SA/Bd 392/21; judgment of the WSA in Szczecin of 16.06.2021. II SA/Sz 42/21; judgment of the WSA in Gorzów Wlkp. of 12.05.2021, II SA/Go 277/21; see Igor Zachariasz in Hubert Izdebski, Igor Zachariasz (eds), Ustawa o planowaniu i zagospodarowaniu przestrzennym. Komentarz LEX [Law on planning and spatial development. Commentary of LEX] (Wolters Kluwer 2013) art. 10; Martyna Sługocka, Lokalizacja OZE poniżej 500 kW – kontrowersje proceduralne [Location of OZE below 500 kW – procedural controversies] (LEX/el 2022) <https://sip.lex.pl/#/publication/470175531/slugocka-martyna-lokalizacja-oze-ponizej-500-k-w-kontrowersje-proceduralne?keyword=Martyna%20S%C5%82ugocka,%20Lokalizacja%20OZE%20poni%C5%BCej%20500%20kW%20-%20kontrowersje%20proceduralne&cm=SFIRST> accessed on 22.05.2023.

The issue therefore generally concerns the possibility of issuing decisions on development conditions for photovoltaic installations due to the above-mentioned provisions concerning the studium. At the same time, it is argued in the doctrine that the studium does not affect the possibility of issuing a decision on development conditions for photovoltaic installations, for the sole reason that it is not a generally binding act.

Zbigniew Leoński, Marek Szewczyk, Maciej Kruś, Prawo zagospodarowania przestrzeni [Space development law] (Wolters Kluwer 2012) 102; Maciej Kruś, Kamil Tychmanowicz, ‘Agrofotowoltaika jako narzędzie ochrony gruntów rolnych’ [Agrophotovoltaics as a tool to protect agricultural land] (2022) 7–8 Samorząd Terytorialny 122–130; Małgorzata Panek, ‘Budowa urządzeń fotowoltaicznych (wybrane zagadnienia administracyjnoprawne)’ [Construction of photovoltaic devices (selected administrative and legal issues)] (2021) 12 Państwo i Prawo 111–127; Maciej Kruś, ‘Decyzja o warunkach zabudowy jako instrument lokalizowania farm agrofotowoltaicznych’ [Decision on development conditions as an instrument for locating agrophotovoltaic farms] in Tomasz Bąkowski (ed), Rozprawa z decyzją o warunkach zabudowy [Dealing with the decision on development conditions] (Uniwersytet Gdański 2022) 158.

This position is also well established in the jurisprudence of the Supreme Administrative Court (verdicts ref. no. II OSK 413/11, II OSK 1439/11, II OSK 2084/13, II OSK 3075/14, II OSK 2576/14, II OSK 1821/17, II OSK 1580/18, II OSK 1646/18): ‘The studium of conditions and directions of spatial development does not have the legal force of a universally binding act and cannot constitute the basis for issuing decisions on conditions of development and land use’.

Judgment of the Supreme Administrative Court (Polish: Naczelny Sąd Administracyjny, hereinafter: NSA) of 1.12.2020, II OSK 1580/18.

These judgments, however, do not concern the location of renewable energy investments on the basis of a zoning decision, in the context of Article 10(2a) of the UPZP. However, this provision does not change anything. The disposition of the legislator regarding the content of the studium does not change the general rule indicated in this case law and the position of the representatives of the doctrine. This rule is in fact based on the recognition of the constitutional order of sources of law to which the studium does not belong, and as such an act cannot be the basis for determining the content of administrative decisions, including decisions on development conditions. Therefore, it must be stated that in recent judgments of the administrative court in Poznań, it was rightly ruled that ‘It is important that when issuing a decision on land development conditions, the head of the commune, the mayor (city president), is not at all guided by the arrangements set out in the studium of conditions and directions for development of the commune. The provisions of Article 61(1)(1–6) of the Act do not refer to any assumptions of the study. Thus, reference to the provisions of Article 10(2a) and Article 15(3)(3a) of the UPZP constitutes an unauthorised overstepping of the bounds of systemic interpretation.’

Judgment of the WSA in Poznań of 14.12.2022, II SA/Po 615/22; judgment of the WSA in Poznań of 16.12.2022, II SA/Po 501/22.

In this case, the ruling directly concerns the location of renewable energy installations on the basis of a decision on development conditions in the context of the findings of the study.

A partly separate issue is that some decisions of administrative courts approve of the narrowing application of Article 61(3) of the UPZP. According to this position, the exceptions set out in Article 61(3) of the UPZP cannot be applied if the installation to be built exceeds the thresholds in Article 10(2a) of the UPZP and if the installation exceeding the thresholds has not been provided for in the studium. ‘It is, however, impossible to agree with the literal reading by the administrative authorities of the content of Article 61(3) of the UPZP, assuming that the requirements set out in Article 61(1)(1) and (2) of the UPZP do not apply to any installation of a renewable energy source. In the current jurisprudence of the Supreme Administrative Court and Provincial Administrative Courts, the prevailing view is that the provision of Article 61(3) of the UZPZ does not function and does not remain in this legal act solely in relation to Article 61(1) and (2) of the UPZP, on the basis of the whole of the UPZP, this provision also remains in relation with other – no less important than the provisions of Article 61(1) and (2) of the UPZP – provisions, including the provisions of Article 1, paragraph 1, subparagraph 2 and paragraph 2, subparagraph 1 of the UPZP. Pursuant to the first of the indicated provisions, the UPZP defines the scope and manner of proceedings in the matter of allocating land for specific purposes and establishing the principles of their development and construction – accepting spatial order and sustainable development as the basis for these activities. On the other hand, according to the second of the indicated provisions, spatial planning and development shall in particular take into account the requirements of spatial order, including urban planning and architecture. (Cf. judgments: WSA in Szczecin of 16.06.2021, ref. no. II SA/Sz 42/21, WSA in Gliwice of 19 May 2021, ref. no. II SA/Gl 1423/20).’

Judgment of the WSA in Kielce of 8.09.2021, II SA/Ke 444/21.

‘It is assumed in the literature that the regulation of the provisions of Article 10(2a) and Article 15(3)(3a) of the UPZP means that the siting of this type of energy infrastructure equipment is a matter for the decision of the municipal authorities under their planning authority, with arrangements on this subject being obligatory in the study and optional in the local plan. Consequently, it is legitimate to conclude that the implementation of equipment generating energy from renewable sources with a capacity exceeding the limits (respectively: 100 kW or 500 kW) in the area of the municipality, both on the basis of the local plan and the decision on land development conditions, can only take place in the areas indicated in the studies (cf. M. Szyrski, Rola samorządu terytorialnego w rozwoju odnawialnych źródeł energii, Wolters Kluwer, Warsaw 2017, pp. 116–117; H. Izdebski, J. Zachariasz, Ustawa o planowaniu i zagospodarowaniu przestrzennym. Commentary, LEX, Article 10). The Supreme Administrative Court in its judgment of 12 January 2018. II OSK 794/16 indicated that ‚the implementation of investments in photovoltaic systems for the generation of electricity (power plants, photovoltaic farms) leads to an actual change of land use from a function, e.g. agricultural crops, to an industrial function. Therefore, it is not possible to conclude that the location of equipment referred to in Article 10(2a) of the UPZP would, pursuant to Article 61(3) of the u.p.z.p., be automatically exempted from the requirements laid down in Article 61(1)(1) and (2) of the UPZP. Similarly, in the judgment of 1 December 2021. II OSK 100/19, the NSA explained that’ the possibility to continue the existing function in terms of land development is the essential criterion allowing for the location of ground-based photovoltaic installations. An investment in the form of the construction of a set of photovoltaic panels, as an investment with a production function in the form of energy generated therein, cannot be exempted from the obligation to comply with the condition provided for in Article 61(1)(1).’

Judgment of the WSA in Gdańsk of 7.09.2022, II SA/Gd 617/22.

Meanwhile, in accordance with Article 61(3) of the UPZP, the requirement of Article 61(1)(1) and (2) of the UPZP (i.e., the requirement to provide access to a public road and the ‚good neighbour principle‘), does not apply to the installation of a renewable energy source within the meaning of Article 2(13) of the Act on Renewable Energy Sources of 20 February 2015.

Act of 20 February 2015 on renewable energy sources (i.e. Dz. U. of 2022, item 1378 as amended).

The wording of Article 61(3) of the UPZP is unambiguous and does not provide for any restrictions on its application:

(3) The provisions of paragraph (1)(1) and (2) shall not apply to railway lines, linear facilities and technical infrastructure equipment, as well as renewable energy source installations within the meaning of Article 2(13) of the Act of 20 February 2015 on renewable energy sources.

In view of the foregoing, it should be considered a misinterpretation to introduce restrictions in the application of Article 61(3) of the UPZP arising, inter alia, from the power or other parameters to be characterised by the renewable energy source installation to be located, or placement the installationin the studium. The above standpoint is also confirmed by the latest jurisprudence of the Supreme Administrative Court and the Provincial Administrative Courts:

In the opinion of the Court of First Instance, which is also shared by the Supreme Administrative Court, the categorical wording of Article 61(3) of the Act does not provide grounds for the introduction of restrictions in its application resulting, inter alia, from the power or other parameters to be characterised by a localized installation of a renewable energy source. (...) Reconstructing the content of Article 61(3) of the UPZP taking into account Article 10 par. 2a of the u.p.z.p., cannot be equated with the application of a systematic interpretation of the law. (...) Besides, the findings contained in the studium of conditions and directions for spatial development of the municipality (described as an act of spatial planning policy and an act of internal management and not, pursuant to Article 9(5) of the APZP, an act of local law, binding on the municipality authorities when drawing up local plans, see Article 9(4) of the APZP), cannot, on account of their internal character, bind the body issuing an administrative decision. This is because the decision is issued on the basis of generally binding provisions.

Judgment of the NSA of 29.06.2022, II OSK 1276/21; judgment of the NSA of 03.11.2022, II OSK 2130/22.

Having regard to the recent statements of the Supreme Administrative Court on the issue in question, forming a uniform line of jurisprudence, the Court herein deviates from its previous view, expressed in previous judgments (among others, cited above), thus adopting the view that the location of a photovoltaic farm carried out on the basis of the provisions UPZP, regardless of its power, pursuant to Article 61(3) of that Act, does not require, in the assessment, the prerequisites of the principle of good neighbourhood and access to a public road.

Judgment of the WSA in Gdańsk of 21.12.2022, II SA/Gd 777/22.

The same standpoint is taken by the Supreme Administrative Court in all judgments issued after the judgment of the Supreme Administrative Court of 29.06.2022, II OSK 1276/21 (Judgment of the Supreme Administrative Court of 11.01.2023, II OSK 2619/22; Judgment of the Supreme Administrative Court of 22.11.2022, II OSK 2249/22; Judgment of the Supreme Administrative Court of 3.11.2022, II OSK 2130/22) and by the Provincial Administrative Courts in almost all judgments issued after 29 June 2022. : Judgment of the WSA in Gorzów Wlkp II SA/Go 288/22; Judgment of the WSA in Kielce II SA/Ke 364/22; Judgment of the WSA in Szczecin II SA/Sz 485/22, Judgment of the WSA in Szczecin II SA/Sz 732/22; Judgment of the WSA in Rzeszów, II SA/Rz 1423/22; Judgment of the WSA in Poznań, II SA/Po 658/22; Judgment of the WSA in Białystok, II SA/Bk 654/22; Judgment of the WSA in Poznań, IV SA/Po 558/22; Judgment of the WSA in Szczecin, II SA/Sz 513/22; Judgment of the WSA in Białystok, II SA/Bk 598/22; Judgment of the WSA in Szczecin, II SA/Sz 607/22 (all judgments available in the Central Database of Administrative Court Judgments, at: (https://orzeczenia.nsa.gov.pl).

To sum up this part of the considerations, it may be stated that administrative courts are now correctly assuming that in order to issue decisions on development conditions for photovoltaic installations constituting ground-mounted renewable energy power plants, it is not required that the areas for their location be previously laid out in the studium, nor that their compliance with the good neighbourhood principle be verified for these investments, nor that they have guaranteed access to a public road.

Amendments to the UPZP regarding the location of renewable energy installations

The already mentioned Act of 9 March 2023 amending the Act on investments in wind power plants and certain other acts introduced changes to Article 10(2a) of the UPZP and Article 15(3)(3a) and (4) of the UPZP. With regard to the changes concerning Article 10(2a) of the UPZP, in the studium, the communes will no longer determine protection zones for areas designated for renewable energy sources. Such zones will be established, if necessary, only at the stage of drawing up local plans pursuant to Article 15(3)(3a), with the proviso that such zones must be within the areas of location of renewable energy investments designated in the studium. It is worth adding that the need to designate protection zones depends on the type of technology that will be used to produce energy from renewable sources. The provision allows for this, as these zones are to be designated ‚according to needs‘. In this context, it is worth noting that in some decisions of administrative courts, it has been aptly accepted that the location of a photovoltaic installation on the basis of a local plan may not require the designation of a protection zone. ‘On the other hand, the Court found the allegation of failure to designate a protection zone for photovoltaic installations in the area marked with the symbol ‘ES’ to be unfounded. In this respect, the Court shares the position of the authority. The protection zone in the zoning plan should be designated ‘as required’. Therefore, since the photovoltaic installations do not have any impact on the surroundings, there are no grounds to consider that there is a need to designate a protection zone. In the absence of an impact, it is not clear what criteria the authority would be guided by in designating such protection zones. In the opinion of the panel, the phrase ‚as required‘ does not refer only to the decision to designate areas for the construction of the facilities referred to in Article 10(2a) but also to their protection zones.’

Judgment of the WSA in Poznań of 23.03.2016, IV SA/Po 1053/15, also judgment of the WSA in Warsaw of 30.07.2020, VII SA/Wa 2784/19.

In other words, in the case of photovoltaic installations, due to the lack of significant impacts, the definition of a protection zone is unnecessary. This was also pointed out by the legislator in the explanatory memorandum of the bill, motivating the change in the content of the above provisions: ‘Article 4(1) of this draft introduces an amendment to Article 10(2a) of the Act of 27 March 2003 on spatial planning and development. It consists in abolishing the obligation to define buffer zones for areas where renewable energy sources are to be located already in the studium of conditions and directions of spatial development of communes. This is justified by the fact that it may not yet be known at the stage of drawing up the study whether, what and precisely which renewable sources will be installed in a given area. Therefore, such detailed decisions should be taken at the stage of preparing the MPZP, when much more information may already be available. Furthermore, this amendment is compatible with the provisions of the Distance Act, which stipulates that the distance of wind power plants from residential houses and vice versa must be specified in the MPZP, as an act of local law. Article 15(3)(3a) specifies that the areas of areas designated for renewable energy investments and their protection zones, as specified in the MPZP, must be within the area designated for renewable energy investments, as specified in the studium.’

Draft No. 2938, Project of the Law on Amendments to the Law on Investments in Wind Power Plants and Certain Other Laws, Warsaw, 14 July 2022, justification pp. 32 <https://www.sejm.gov.pl/sejm9.nsf/druk.xsp?nr=2938> accessed on 18.05.2023.

The amendment to Article 15(4) of the UPZP may be regarded as a very significant change. Pursuant to the amended wording of the provision, if the local plan provides for the possibility to locate buildings, then in the absence of a ban on the location of photovoltaic installations, it is possible to locate other than free-standing photovoltaic installations also in areas with other than production purposes. It is worth noting that the legislator has already facilitated the location of equipment integrated, e.g. with buildings, as pursuant to Article 10(2a)(2) of the UPZP, there is no need to designate in the studium areas for the location of renewable energy devices other than free-standing ones.

Agata Kościuk, ‘Budowa farmy fotowoltaicznej – problemy praktyczne’ [Construction of a photovoltaic farm – practical problems] (LEX/el 2022) <https://sip.lex.pl/#/publication/470144400/kosciuk-agata-budowa-farmy-fotowoltaicznej-problemy-praktyczne?keyword=Ko%C5%9Bciuk,%20Budowa%20farmy%20fotowoltaicznej%20&cm=SFIRST> accessed 22.05.2023.

However, the current amendment is a breakthrough. The amendment allows photovoltaic installations to be installed on the roofs of buildings as well as on their façade. It is not clear from the legislation that it is only about locating on buildings, so these devices can be located, for example, on car park shelters. It should be noted, however, that this change only applies to areas covered by valid local plans, and does not apply to cases where photovoltaic installations are installed on the roofs or facades of buildings realised on the basis of development conditions decisions. However, in most cases, the introduction of a photovoltaic installation will not involve the obligation to obtain a new decision on development conditions, with the exception of a situation in which a change of land development or a change of the use of a building or its part would be made.

This change can be assessed unequivocally positively. It significantly facilitates the installation of photovoltaic devices on buildings and related infrastructure. The Polish legislator has recognised that devices producing electricity from the sun are becoming part of the infrastructure of functioning buildings, just like other types of it, such as air-conditioning equipment, water supply or sewage disposal equipment. This is undoubtedly evidence of a breakthrough in viewing photovoltaic technology not as a separate type of productive investment, but precisely as an element of the infrastructure associated with the use of a building. This step is even more significant in the context of the challenges faced by today‘s building industry to reduce or even eliminate the contribution to the greenhouse effect and, consequently, climate change. Of course, buildings self-supplied with electricity produced from the sun is also cheaper, which is worth emphasising in times of crisis in the energy price market. Another emphasis ist hat this is healthier by reducing smog, especially in those cases where electricity from photovoltaics would be used to heat buildings. The legislation leaves it up to the owners, the users of the buildings, to decide whether to equip them with this type of facility. It may be expected, however, that, following the example of French or German solutions, the Polish legislator will introduce regulations requiring new buildings to be equipped with photovoltaics or, for example, the obligatory roofing of large car parks with panels.

Karolina Chról, ‘Rola zagospodarowania przestrzennego w rozwoju odnawialnych źródeł energii na poziomie lokalnym’ [The role of land use planning in the development of renewable energy sources at the local level] (2022) 7–8 Samorząd Terytorialny 98–108; Zdecydowali się wprowadzić obowiązkowe panele nad parkingami. W całym kraju https://smoglab.pl/zdecydowali-sie-wprowadzic-obowiazkowe-panele-nad-parkingami-w-calym-kraju/> accessed on 18.05.2023; Niemieckie landy wprowadziły obowiązek montażu fotowoltaiki <https://www.gramwzielone.pl/energia-sloneczna/107058/niemieckie-landy-wprowadzily-obowiazek-montazu-fotowoltaiki> accessed on 18.05.2023.

In both cases, the idea is to use urbanised areas to produce energy from the sun, which appears to be doubly beneficial to the environment as, in addition to the production of energy from renewable energy investments, the extent of conversion of biologically active areas is then reduced.

Summary

The text shows that in recent months there have been favourable changes in Polish law and in the jurisprudence of administrative courts from the point of view of the development of electricity production from the sun. They generally consist in a breakthrough in the interpretation of the law, which allows for an alternative path to the adoption of a study and a local plan by the municipal council in turn – the location of ground-based photovoltaic investments. Well, it is lawful to issue a decision on development conditions for this type of investment independent of the findings of the study. The second major change concerns the location of photovoltaic devices on buildings and related facilities. In this case, as a result of the amendment to the regulations, a rule was introduced that the designation of property in the local plan for buildings is tantamount to consent to the location of photovoltaic facilities associated with them. The establishment of a production function for the site is not necessary. Therefore, it can be concluded that the legislator considered that the production of energy from the sun in this type of equipment is part of the function that gives the right to develop buildings – regardless of how they are used.

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