Local Authority Investments in the Field of Energy Transition and Their Determinants (on the Example of South-Eastern Poland)

Abstract

This article deals with the development of renewable energy sources and their role in the transformation of energy. The main purpose of this article is to analyze the role of local governments in Poland in accelerating energy transformation at the local level through the implementation of municipal investments. The potential activities of the municipalities in the area of local eco-energy were presented, with particular emphasis on their own investment projects. The involvement of municipalities in the implementation of their own projects in the area of energy transformation was assessed, and the sources of financing for such projects were determined. A diagnosis of barriers and limitations to the increase in the participation of communes in this area was also made. This research was carried out in the Podkarpackie and Lublin regions in southern Poland. The research results indicate that local government authorities are willing to accept contributing to eco-energy projects, but only when nonrepayable funds are involved in the financial assembly. In such a situation, they are also willing to seek loans as a source of bridge financing or financing the unit’s own contribution. Financial constraints are of key importance for municipal investments in the area of energy transformation. Among the internal factors that hinder the investments of communes in the area of energy transformation, financial constraints (budget) were definitely dominant. These limitations far exceeded the costs associated with energy planning, as well as the spatial and location barriers felt by local government officials.